In general, foreign companies can choose three options:
– Create a Branch or Agency of a Branch or Holding Company.
– Constitution of an Autonomous Commercial Society in Chile.
– Acquisition or Merger.
Regarding these alternatives, the client is generally free to choose. The only exceptions are found in regulated markets, such as Banking Institutions or Stock Brokers, who must act according to special local law.
As its name implies, this option does not create an autonomous company in the country, but creates a subsidiary legal entity of the main one. Therefore, the first step is to prepare a Public Deed that contains the company’s legal and financial information, documents that must then be legalized according to Chilean regulations.
The declaration must contain the designation of a Legal Representative of the Branch in Chile, Statutes or by-laws of the Company, certificate of validity, name, address, information regarding the capital and business of the Chilean Branch, and express declaration in which the Company declares that it has sufficient assets to guarantee its liquidity in the event of contracting future obligations.
Once the Company is incorporated, it has the obligation to declare its Initiation of Activities before Internal Taxes (SII), which must be carried out within a period of two months while the company has carried out deductable movements. Along with this, the specific municipal license must be paid.
Lastly, although there is no prohibition in Chile for Foreigners to incorporate Commercial Companies, Internal Taxes do require them to designate a Legal Representative with residence in Chile, to act and answer before the SII.
It is a unique tax role that identifies a certain foreigner before the internal tax system and other organizations in Chile. Unlike permits, it does not necessarily express the intention to remain in the country, only to do business and celebrate acts and contracts there.
“Investment Chile” is a Legal and Accounting group dedicated to achieving the incorporation of companies and their personnel in Chile. Based in Santiago, our lawyers and accountants are in charge of planning and executing all the processes required for the establishment in our country. Our mission is to advise anyone who sees an opportunity in Chile, we believe in open borders and global opportunities.