Now, after going through what you need before incorporating, is time to revise the process of incorporation of the most common types of companies used in Chile, according to the Law 20.659 of 2013 that simplifies the process of incorporation. This process is commonly known as “Company in a Day” (Empresa en un Día). Keep in mind that this law does not abolishes the old system of incorporation, but works as an alternative.

The Law creates an Electronic Register for Companies managed by the Minister of Economy, where anyone with a RUT number can create a user and create, modify, transform or dissolve a Company on-line.

For each interaction with the system is necessary to have and Advanced Electronic Signature (Firma Electrónica Avanzada, FEA). Each partner must have his own signature to act on the Register. The Law offers the option to sign the document in a Notary, and then the notary will act in the register on behalf of the partners.

The first step is the drafting of the documents of incorporation of the company. This process must be undertaken by filling the proposed forms depending on the type of company of choosing. All the content on the website is in Spanish. Once the forms are filled, the system will generate an electronic draft in pdf. format.

Is advisable to consult with a Lawyer about the type of company that better suits the purpose, and about the different types of clauses and its implications, before proceeding to the signature of the documents.

After this process is finished, the company will have legal existence and will have a Tax Id Number (Rol Unico Tributario, RUT) generated automatically after the last partner signs the documents of incorporation. Nevertheless is necessary to make the declaration of Beginning of Activities at the Tax Authority (Servicio de Impuestos Internos, SII) to complete the birth process of the company.

This new system of incorporation offers some advantages for entrepreneurs because requires fewer procedures and imply less cost. Also the partners have access to the certificates of incorporation of the company free of charge.

The associated Notary fees for the process of incorporation are around $15.000 CLP. If the partners choose to buy the Advanced Electronic Signature the costs go from $25.000 CLP to $60.000 CLP depending on the seller.

Santiago Henriquez C. Lawyer

Picture: Federico Bottos (CC0)