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 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 again relates to regulated markets, as is the case with 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, from August 1 the suggested amount is over $ 100,000 USD.
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 rules have been met, for example, that there are no outstanding 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 legal and financial information of the company, documents that must then be legalized according to Chilean regulations.
The declaration must contain the designation of the Legal Representative of the Chilean Branch, Bylaws or by-laws of the Company, certificate of validity, name, address, information regarding the capital and business of the Chilean Branch, and express statement in which the Company declares maintain sufficient assets in Chile to guarantee its liquidity in the event of contracting future obligations.
Firstly, Natural Persons and Foreign Legal Persons (acting through their legal representative) must obtain Foreign Investor Rut.
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 the Chilean Public Institutions.
If the foreigner with Foreign Investor ID is in Chile, then he can act validly by identifying himself with his Passport and Foreign Investor ID.
Once the Company is incorporated, it has the obligation to declare its Initiation of Activities before Internal Taxes, which must be carried out within a period of two months since the company has carried out actions that may be taxed. 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 to the Service.
When obtained, it allows the foreigner to celebrate essential acts and contracts such as buying real estate, forming commercial companies or entering them as a partner and conducting banking operations, among others. If you want to start in the country, you must request it.
Indeed, 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 Immigration and Immigration Department.
It is also added that the process to obtain Rut of Foreign Investor can be ready in a couple of days, while obtaining a temporary residence permit takes between three months to a year.
Se agrega también que el proceso para obtener Rut de Inversionista Extranjero puede quedar listo en un par de días, mientras que la obtención del permiso de residencia temporal demora entre tres meses a un año.
Along with obtaining certain ordinary information (name, national identity document, address, marital status, etc.), there is a particular requirement in this procedure. It consists of obtaining the support of a Chilean person or foreigner with permanent residence, who signs attesting to their name on the form. This third party will thus obtain certain obligations and responsibilities on their behalf, before the SII.
Indeed, the specialty of this process necessarily requires the advice that our team provides. If you already have a partner who can vouch for you before the Service, you do not need to travel to Chile but we can coordinate the procedure from your country.
Existing taxes can be classified into:
1) Income Taxes
2) Sales and Service Taxes
3) Specific Taxes
4) Other Taxes
According to the Chilean Internal Revenue Service, the sizes of companies are classified based on their annual sales in the following ranges:
• Microenterprise rank 1 from 0.01 UF – 200 UF.
• Microenterprise rank 2 from 200.01 UF – 600 UF.
• Microenterprise rank 3 from 600.01 UF – 2,400 UF.
• Small business rank 1 from 2,400.01 UF – 5,000 UF.
• Small business rank 2 from 5,000.01 UF – 10,000 UF.
• Small business rank 3 from 10,000.01 UF – 25,000 UF.
• Medium company rank 1 from 25,000.01 UF – 50,000 UF.
• Medium company rank 2 from 50,000.01 UF – 100,000 UF.
1 UF is approximately equivalent to: USD $ 35
Attributed income:
Regime where the owners of the company must pay taxes on the entire income, regardless of the profits that are withdrawn. When using this modality, the First Category Tax must be paid, with a rate of 25%.
In this system, taxpayers have the right to use 100% of the amount paid at the First Category Tax level as a credit against Second Category personal taxes.
Semi integrated:
Regime where the owners of the company must pay taxes on the basis of the effective withdrawals of utility. If this modality is accepted, First Category Tax must be paid with a rate of 27% from the commercial year 2018 onwards.
It is important to clarify that the current Chilean legislation on the matter, when regulating the number of foreign workers who can serve the same employer, indicates that 85% of its workers must be Chilean, thus leaving room for 15% of workers. foreigners within the company.
There are different areas of the regular operation of a company or company in Chile:
I.- Accounting Planning and Operational Procedures
II.- Monthly, Annual and Income Tax Declaration
III.- Remuneration and Legal Discounts
IV.- Electronic Invoicing authorization for purchase and sale
V.- Management Reports, Balances and Inventory Control
Chile is open for citizens of all countries in the world to apply for Chilean permits or nationality, without any discrimination.
However, Colombian, Peruvian and Dominican citizens must accompany a certificate of judicial background in their applications.
A tourist is considered to be a foreigner who enters the country without the intention of staying there, obtaining a residence or carrying out remunerated activities. 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 limit of days, his departure will be denied until he cancels a financial fine.
Chile allows it, but prior to obtaining the “tourist work permit” granted by the Department of Immigration and Migration, and for a maximum period of 30 days, which can be extended if the tourism permit is maintained.
In no case. One can enter the country as a tourist and then request a specific application from the Immigration and Migration Department.
If you still have a specific question or need general advice, our team will resolve all your concerns.
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