In general, foreign companies can choose three options:
– Creation of a a Subsidiary or Agency of a Branch of the Main Company.
– Constitution of an Autonomous Commercial Company in Chile.
– Acquisition or Merger.
Regarding these alternatives, generally the client can choose freely. The only exceptions are found in regulated markets, such as Banking Institutions or Stock Brokers, who must act as mandated by the special law.
The general rule is that there is no minimum amount required to make the Foreign Investment or to Incorporate a Foreign Company in Chile. The exception is again related to regulated markets, as is the case of financial institutions.
If it is convenient to remember that to Make an Investment in Chile or Incorporate a company in order to justify an application for residence or Visa as an Investor, as of August 1 the suggested amount is over $100,000 USD. More information at following link.
Regarding the withdrawal or repatriation of profits from the Chilean company abroad, it is important to add that there is no determined maximum or minimum amount to withdraw. For the withdrawal of profits abroad, our legislation only requires that the general regulations have been complied with, for example, that there are no pending debts with Internal Taxes.
As its name indicates, this option does not create an autonomous company in the country, but rather 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 statement must contain the designation of the Legal Representative of the Branch in Chile, Bylaws or by-laws of the Company, certificate of validity, name, address, information regarding the capital and line of business of the Chilean Branch, and an express statement in which the Company declares maintain sufficient assets in Chile to guarantee its liquidity in the event of incurring future obligations.
First, Natural Persons and Foreign Legal Entities (acting through their legal representative) must obtain the Foreign Investor Rut (explained below).
Then, if they are not in Chile, they must grant a Mandate by Public Deed to a person with Residence in Chile to act on their behalf before Chilean Public Institutions.
If the foreigner with the Foreign Investor Rut is in Chile, then he can act validly by identifying himself with his Passport and Foreign Investor Rut.
Commercial Companies in Chile can be Open Corporations, Closed Corporations, Joint Stock Companies, Limited Liability Companies, Individual Limited Liability Companies and Collective Companies.
Of these, the most common are Stock Companies, Stock Companies, and Limited Liability Companies. More information about the different options HERE.
Once the Company is constituted, it has the obligation to declare its Start of Activities before the SII, which must be done within a period of two months from the time the company has carried out actions subject to taxation. Along with this, the determined municipal patent must be paid.
Finally, although there is no prohibition in Chile for Foreigners to incorporate Commercial Companies, Internal Revenue does require them to designate a Legal Representative residing in Chile, to act and answer to the Service.
Effectively, they are parallel processes whose request does not affect the other. In fact, the Rut is the responsibility of the Internal Revenue Service while the permits correspond to the Department of Immigration and Immigration.
It is also added that the process to obtain the Foreign Investor Rut can be ready in a couple of days, while obtaining the temporary residence permit takes between three months and a year.
In general, it distinguishes between permits, visas and applications for nationality, each of which has its own requirements, privileges and obligations.
It is a temporary permit granted by the Department of Immigration and Migration to reside and carry out certain activities. It is granted for different reasons, where we find Investment, family ties, employment contract with a Chilean company, Mercosur Visa, among others.
To obtain nationality it is required:
Chile is open to citizens of all countries in the world to apply for permits or Chilean nationality, without any discrimination.
However, Colombian, Peruvian and Dominican citizens must include a certificate of judicial record with their applications.
A foreigner who enters the country without the intention of staying in it, obtaining residence or carrying out paid activities is considered a tourist. This will be a tourist who travels for pleasure, study, religious, family or other reasons.
Our country allows a maximum of 90 days from the date you entered the country, a period that can be extended for another 90 days.
It should be noted that if one exceeds the day limit, your departure will be denied until you pay an economic fine.