We take care of the entire incorporation process, from beginning to end. Here we have identified the procedure, separating it in 4 fundamental steps and a final complementary one:
1) Legal Advice.
2) Foreign Investor ID.
3) Foreign Company Incorporation in Chile.
4) Internal Revenue Service and other procedures.
5) Other Services.
6) Legal Advice (Aggregated with cost).
1. LEGAL ADVICE
The first step to start working on a project is planification. Our team provides general advice via video-conference or in-person (Chilean Office), you can make an online appointment here.
Also, we provide specific law reports and business viability evaluations regarding aspects such as environmental, financing and taxation law according to Chilean rules and regulation. The characteristics and cost depends on each client and matter, they can be ordered here.
Once the decision is made, the immediate next step will to obtain the foreign investor ID.
2. FOREIGN INVESTOR ID
It’s a special document, different from the visa and permits system, made for foreigners willing to invest in Chile. Our law gives a broad meaning to the word “investment”, being applicable to contracts and agreements regarding real estate, constitution, acquisition or incorporation of companies, apply to Chilean accelerator programs or funds such as “Start-Up Chile”, and overall, any agreement or contract which requires the inscription of it in a public record to exist.
Therefore, anyone that wants to make business in Chile, and is not a citizen, needs to apply for a “foreign investor ID.” Once obtained, the individual is identified by the Internal Revenue Service, being able to validly take part in agreements.
We remark that a foreign investor can apply for this ID, without necessarily applying for a visa or permit. Both institutions and systems are parallel, they are even a matter of two different public organisms. Also it’s important to add that –unlike permits or visas- you can apply for a Foreign Investor ID without leaving your country, as long as you write a power of attorney viable in Chilean law.
Finally, there is a specific and unique requirement for this ID. Everyone willing to apply, regardless if it’s in Chile or from abroad, must name someone with residency in Chile to represent him/her before “Servicio de Impuestos Internos” (Chilean IRS), which can be a Chilean national or immigrant with definitive permit. To find out if you can apply to this permit in investor’s quality please fill up the following form.
KEY POINTS OF THE “FOREIGN INVESTOR ID”
- Mandatory for business or entrepreneurship in Chile.
- Parallel and different than the “visa and permit system”.
- You can apply from abroad.
- Requires you to name someone to represent you against “Servicio Impuestos Internos”.
- Quick procedure. Once you apply, you immediately obtain a transitory permit.
In “Vivir en Chile” we have experience advising foreign operations and procedures. Be confident to ask about any matter or inquiry, we speak your language.
3. FOREIGN COMPANY INCORPORATION IN CHILE
In order to start operating in Chile, companies may choose between three different options:
- Creating a branch of a foreign legal entity.
- Establishing an autonomous Chilean Corporation.
- Merger or Aquisition of a Chilean Corporation or Company.
The range of prices vary regarding the specific requirements and structure of each foreign company, starting from $ 600 USD to $ 3500 USD depending on the type of business. Ask for a quotation here free of charge.
1) Branch or Agency of a foreign legal entity.
As stated, this options doesn’t create an independent company in Chile, but establishes a subsidiary of a main, foreign entity.
To achieve it, our team elaborates a public deed containing legal and financial information about the foreign company and the documents that must be legalized according to Chilean laws and procedures.
2) Establishing an autonomous Chilean Corporation.
The other alternative, besides establishing a branch of the foreign legal entity, its incorporating an autonomous-independent Chilean Corporation. This is done by our team elaborating a public-deed on behalf of the investor we have previously obtained the “Foreign Investor Id”.
4. INTERNAL REVENUE SERVICE AND OTHER PROCEDURES
Once the company has been incorporated, our team complies with Chilean Tax regulation fulfilling a “Start of business declaration” towards the IRS (Servicio de Impuestos Internos in Chile / National Tax Department). In this declaration the company must state information regarding paid/unpaid capital, share organization, domicile and commercial activity.
Finally, even if there is no legal prohibition for foreigners to incorporate autonomous companies in Chile, the IRS demands that they have a Chilean legal representative able to act towards the IRS. If the client doesn’t have a Chilean agent available, our team also will take care of this requirement.
Again our prices vary according to the capital to be declared, and if the client will or will not have a chilean agent of its own. That being stated, the price ranges from $ 50 USD to $ 300 USD.
5. OTHER SERVICES
Our team is the best partner to help make your business operate in Chile. We advise companies in early or expansion stages, giving integral services covering all legal and economic aspects you may require.
Vivir en Chile’s team offers a complete service for its clients if needed. The following services are listed below:
Pricing of the mentioned relocation services depend on the client’s specifications and are presented in a quotation format to define which one is more convenient in each case.