Company Formation in Chile
OECD member, open market · 6–8 weeks · RUT · No local director required
Formation Process
Chile offers one of the most transparent and investor-friendly business registration environments in Latin America. The SpA (Sociedad por Acciones) is the preferred structure for foreign investors — it can be incorporated with a single shareholder, requires no minimum capital, and has streamlined governance. The process involves notarization, Official Gazette publication, and RUT registration with SII.
See the full company formation guideFormation Steps
- 1
Notarization of the incorporation deed (escritura pública) before a Chilean notary
- 2
Publication of an extract in the Diario Oficial
- 3
Registration with the Commercial Registry (Conservador de Bienes Raíces)
- 4
RUT registration and Inicio de Actividades filing with the SII
- 5
Municipal business license (Patente Municipal)
Foreign Ownership
Chile allows 100% foreign ownership with virtually no sector restrictions — one of the most open foreign investment frameworks in Latin America. No local director or Chilean shareholder is required. The Foreign Investment Promotion Agency (InvestChile) actively supports international investors. The DL 600 Foreign Investment Statute has been replaced by the Foreign Investment Promotion Agency framework, providing legal stability guarantees.
Local Director: Not Required
Legal Entity Types
SpA (Sociedad por Acciones)
Stock corporation by shares, highly flexible and popular among foreign businesses for its simplicity and operational freedom
SRL (Sociedad de Responsabilidad Limitada)
Limited liability company, suitable for smaller businesses with a defined group of shareholders
SA (Sociedad Anónima)
Public stock corporation, typically used for larger enterprises or companies planning to raise public capital
Accounting & Tax
All entities operating in Chile must register with the SII and obtain a RUT before commencing business. Chile's tax framework is known for being relatively straightforward and business-friendly, with a clear annual settlement cycle. Capital contributions and related-party foreign loans must separately be reported to the Central Bank under Chapter XIV within 10 days of the following month, independent of anything filed with the SII.
RUT
The RUT (Rol Único Tributario) is Chile's unique tax identification number, issued by the Servicio de Impuestos Internos (SII). It is required for all tax filings, invoicing, and business operations.
VAT / IVA
Chile's VAT (IVA) is levied at a flat rate of 19% on most goods and services. The rate applies uniformly — there are no multiple rates as in Brazil. Electronic invoicing (DTE — Documento Tributario Electrónico) is mandatory for all commercial transactions and filed through the SII portal.
Corporate Tax
Chile's first-category corporate income tax (Impuesto de Primera Categoría) is levied at 27% under the régimen general, or a transitory 12.5% rate through 2027 for smaller entities under the Pro Pyme regime, rising to 15% in 2028. A top-up applies when profits are distributed to shareholders. Monthly provisional payments (PPM) are required throughout the year. Interest and fees paid to a related foreign party on debt exceeding a 3:1 debt-to-equity ratio face a standalone 35% tax on the excess under thin-capitalization rules (Art. 41 F), a common trap for entities funded mainly through parent-company loans rather than equity.
Compliance Requirements
Annual Obligations
Annual corporate income tax return (Formulario 22) filed with SII — deadline April 30
Annual shareholders meeting and statutory financial statements
Annual Patente Municipal renewal with the operating municipality
Monthly Obligations
Monthly IVA (VAT) declaration (Formulario 29) filed electronically with SII
Monthly PPM (provisional monthly payment) income tax advance
Monthly DTE (electronic invoicing) for all transactions via SII-authorized systems
Monthly AFP (pension), Fonasa/Isapre (health), and AFC (unemployment) payroll contributions if employing staff
Payroll & Employment
Chile's labor framework is governed by the Código del Trabajo. Chile has a well-developed social security system with mandatory pension (AFP), health (Isapre/Fonasa), and unemployment (AFC) contributions.
Mandatory benefits include minimum 15 days paid vacation (increasing with seniority), Christmas and national holiday bonuses, and legal severance (indemnización por años de servicio)
Monthly AFP (pension fund) contribution: employee ~10%, employer ~0% + SIS (disability/survivor insurance ~1.53%); Fonasa/Isapre health: employee 7%; AFC unemployment: employer 2.4%, employee 0.6%
Previred or similar platform handles monthly AFP/Fonasa/AFC payments; all salary and contribution records must be maintained electronically
NavviPal coordinates payroll processing and Código del Trabajo compliance through vetted Chilean in-country partners. Contact our team before your first hire.
Talk To An ExpertWhy Chile
Chile is Latin America's most stable and transparent economy, the only South American country in the OECD, and consistently ranks first or second in the region for ease of doing business, rule of law, and economic freedom. It is the natural low-risk entry point for a first Latin American subsidiary, at the cost of being a comparatively small domestic market on its own.
19M
Population
~$340B USD
GDP (2024 est.)
~$16,000
GDP per Capita
~4.5%
Inflation (2024)
Managing Your Entity with NavviPal
NavviPal's platform tracks your Chilean entity's RUT status, SII filing calendar (Formulario 29), DTE compliance, and annual tax return deadlines in a single dashboard.
Key Authorities
Servicio de Impuestos Internos (SII)
Chile's internal revenue service responsible for tax administration, RUT issuance, and compliance oversight
Local Director Requirement
Chile does not require a local director or legal representative for most corporate structures. Foreign directors and shareholders can manage the entity remotely, though a Chilean registered address is mandatory.
Frequently Asked Questions
How long does company formation take in Chile?
Company formation in Chile typically takes 6-8 weeks for a foreign-owned company, driven by notarization, apostille requirements, SII activation, and corporate bank onboarding. The process includes drafting and notarizing the articles of incorporation (escritura pública), publication in the Diario Oficial (Official Gazette), registration with the Commercial Registry, and RUT registration with the SII (Servicio de Impuestos Internos). Chile has one of the most transparent business registration environments in Latin America.
Do I need a local director or legal representative in Chile?
Chile does not require a local director or legal representative for most corporate structures. Foreign individuals and entities can fully own and manage a Chilean company. A registered local address is mandatory, and appointing a local tax representative is recommended for SII and registry interactions.
Can foreigners own 100% of a company in Chile?
Yes. Chile allows 100% foreign ownership with virtually no restrictions across most sectors, one of the most open investment frameworks in Latin America. No local director or Chilean shareholder is required. InvestChile actively supports international investors. Restrictions are limited to specific areas such as fishing and maritime cabotage.
What does it cost to form a company in Chile?
Company formation in Chile typically ranges from $350 to $1,700 USD for the core process, including notarization, Official Gazette publication, and Commercial Registry registration. Ongoing costs include monthly accounting, VAT filings, and annual tax returns. NavviPal provides transparent, itemized quotes, contact us for your specific scenario.
What is the RUT and why is it needed?
The RUT (Rol Único Tributario) is Chile's unique tax identification number, issued by the SII. It is required for all tax filings, electronic invoicing (DTE), banking, contracts, and commercial transactions in Chile. The RUT is also the company's legal registration number and is assigned upon incorporation.
How do I invoice a foreign company from Chile, and does DTE apply to cross-border sales?
Yes. Chile's electronic invoicing system (DTE, Documento Tributario Electrónico) applies to a Chilean entity's sales regardless of whether the customer is domestic or abroad, there's no exemption for invoicing a foreign company. You issue a DTE through the SII portal or authorized software just as you would for a local sale, and if the service qualifies as an export of services, it may be VAT-exempt, but the invoice itself still has to be a valid DTE, not an informal invoice. Getting this wrong is a common early mistake for foreign-owned Chilean subsidiaries billing their own parent company or other group entities abroad, since intercompany invoices are held to the same DTE requirement as any other sale.
What documents are needed to incorporate in Chile?
Core requirements include: notarized articles of incorporation (escritura pública) executed before a Chilean notary, an extract published in the Diario Oficial, registration with the Registro de Comercio, RUT registration with SII, and apostilled copies of foreign shareholder identification documents. A local registered address is required.
Related Resources
Country Comparisons
Formation Guides
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