How to create a company in Chile as a foreigner
NSS Abogados Limited is a law firm that specializes in providing legal, tax, accounting and labor outsourcing services and advice efficiently and with fixed prices to both domestic and foreign investors and companies, providing comprehensive advice throughout the process of investing and managing a business in Chile. We have more than 8 years of experience registering and representing foreign companies from 5 continents and more than 30 countries.
Our firm has extensive experience in international accounting and tax structuring, corporate consulting, labor law and accounting, thus confidently covering all the needs that international companies have in their operations in the country to be 100% compliant.
We invite you to invest in Chile with our updated guide to July 2025 that we make available to you.
No matter the size or size of your company, investing in Chile offers a stable environment in terms of its innovation and economy, with broad economic growth projections and controlled inflation. This makes it attractive for foreign investment.
There is in our country a legal environment for the protection of foreign investments, protected by international treaties, independent of the process of constitutional change currently facing the country.
PRO TIP: Currently in Chile there is a corporate tax reduction benefit for SMEs, effective until the end of 2027, with a rate of 12.5%.
This allows foreign capital to operate as any domestic company would, without discrimination.
Naturally, the structure of each business will depend on its unique characteristics, which must be analyzed on a case by case basis.
This manual seeks to provide practical guidance on the key legal aspects when investing in Chile.
If you want to set up your company in Chile, and appoint us as representatives, supporting you throughout the process, without the need to travel to Chile, send an email explaining your project to our partner, an expert in foreign investment and international tax law, Esteban Sáez: esaez@nss.cl, or send a WhastApp to +569 9010 2490, we will be happy to help you.
Supporting companies in their internationalization processes is our passion.
We also invite you to visit our international services page And our NSS® App Customer Portal available for you, where we explain in depth various subjects related to foreign investment in our country.
All people seeking to invest in Chile will be subject to payment of taxes, so it is necessary to assign themselves a Single Tax Role (RUT), also known internationally as TAX ID.
To obtain a RUT as a foreigner - person or company - it is a requirement grant a power of attorney to a Chilean person.
This power is specifically to represent the Investor before the Internal Revenue Service.
This power of attorney can be signed abroad or in Chile. If you subscribe abroad you must be Apostilled and physically sent to Chile.
If it is a company that is going to invest in Chile, it is also necessary to submit:
It is very important that all documentation must be submitted duly apostilled or legalized, no more than 60 days old.
The documents issued in a language other than Spanish or English, must be translated by a competent authority and apostilled.
With these documents, the investor's representative must file Form 4415.1 with the SII with which he achieves obtaining a RUT for foreign investors.
As a general rule, to be a legal representative you must have a Definitive Visa.
If investors act through representatives or representatives, they must have a domicile or residence in Chile. If they are foreign representatives, they must also have a residence permit that allows them to carry out activities in Chile.
Normally, if the legal representative is not a national or has the necessary permission to represent companies, he experiences certain limitations, the most common being the limitation to opening current bank accounts with banks in the square and not being able to represent the company before the Internal Revenue Service. Review SII Circular 31 of 2014.
Our recommendation when investing in Chile is appoint someone of absolute trust or lawyers who are experts in the legal representation of companies who act on instructions from the principal (the investor in this case) when signing acts and contracts.
There are many ways in which companies can organize themselves in the country to start activities.
From non-profit organizations to public limited companies with a stock market presence. Local legislation seeks to recognize different structures for different needs that may arise.
Once we already have RUT as a foreign investor and are in the SII database, we can proceed with the establishment of a company.
This is done by signing a public charter of incorporation. The statutes regulate the way in which the company is managed and the capital provided by shareholders, among others.
PRO TIP: If you seek to carry out the procedure without traveling to Chile, the power of attorney must grant the power to establish a company in Chile. In this way, your representative will sign the constitution of the company in your name and on behalf of you.
PRO TYPE: It is also possible to acquire all the shares of a company already incorporated in the country. Consult the email esaez@nss.cl or WhatsApp +56990102490 for the possibility of acquiring a company ready to operate, with a bank account.
Generally, a foreign company can choose from one of the following types of organization:
As a general rule, it is not mandatory to choose any of these particular structures to do business in the country.
This, except for certain business areas, such as the banking industry, investment funds, among others.
It is important to consider aspects such as administration and corporate governance, transferability of shares, and others. These Criteria will help us to choose the right corporate structure.
A permanent agency It is the one that is incorporated in Chile but maintains its domicile abroad, through its parent company. Doing business through an agency or branch in Chile, without setting up a new company.
In certain cases, due to the application of agreements to avoid double taxation, it may be the most convenient structure.
This is because it allows you to pay taxes only in the country where the company has its headquarters.
Once the RUT has been obtained, and the choice of the most appropriate corporate structure has been made, it is recommended to request a report on how the future profits that the company will generate will be taxed.
It is also important to determine what tax a potential sale of the property (shares or rights) of the company will pay.
Profits generated in Chile by foreigners are generally subject to an additional fixed rate tax of 35%.
When the company makes a distribution of dividends or profits to its foreign shareholders, it is required to withhold 35% of said dividend through Form 50 available on the website of the Internal Revenue Service.
In Chile, corporate tax amounts to 25% of the income generated in one year by the company. This is if it is a “Small and Medium Enterprise” with an annual turnover of less than approximately USD 3 million per year.
Once the partners obtain dividends from the company (profit withdrawal), the company is required to withhold the difference between corporate tax and the additional tax rate of 35%.
It is important to determine what benefits I can apply depending on the country from which I am going to invest in Chile, applying the agreements to avoid double taxation that Chile has signed with a large number of countries.
By application of an international tax convention, it may be more convenient to come from one country than from another.
The sale of the company's shares can also generate a profit for those who practice it.
To calculate the profit generated, the amount of the contribution made at the time the company was established must be deducted from the amount sold by the company.
The highest value generated is affected by the 35% tax rate.
Practical planning case: If we apply agreements such as the one signed between Chile and Spain, the tax rate for the sale of property owned by the company is subject to a single rate of 16%.
In other words, for the same transaction, depending on the country of residence of the parent company, I will pay 19% less tax.
As long as you are aware of this benefit and how to apply it.
This makes Spain one of the most convenient countries to invest in Chile.
Once the corporate structure and tax strategy have been defined, the investor's representatives will sign an act of incorporation of the company.
This writing defines the form of administration, capital, domicile, draft, and other precepts of the parent company.
The company's articles of association must be registered with a notary public for registration.
In the case of the establishment of a permanent establishment, they must also expressly declare that:
A summary (extract) of the public writing must be published in the Official Gazette and entered in the Commercial Register within 60 days.
It is also necessary to judicially represent the Foreign Agency and any other action they wish to carry out.
Once the Public Deed has been obtained, published in the official gazette and registered in the Trade Register, it is necessary for the company's Legal Representative to appear before the Internal Revenue Service.
Therefore, in order to obtain RUT and carry out the initiation of activities for such purposes, the following documentation must be submitted:
With these documents, you must proceed to file Form 4415 for commencement of activities. This form indicates the economic activities that the company will carry out in the country.
Once the company has completed all the above steps, it must prove its domicile in the country through a lease or sub-lease agreement.
Once this has been done, the company is authorized to issue Invoices and other tax documents in Chile.
The important thing now is to file monthly tax returns in a timely manner. Taking into account the advice of an accountant who makes such presentations in accordance with local legislation.
Setting up a foreign company in Chile has become a simple process. If we add to this fact tax benefits such as corporate tax reduced at a rate of 12.5%, Chile presents itself as an excellent option for investing in Latin America.
The key is have representatives and quality advisors in the country, with experience in using all the tax and corporate benefits that can be accessed.
At NSS, we specialize in representing foreign companies that seek to expand their business horizons in our country. We have represented companies from all corners of the world, such as Iceland, the United States, Mexico, Colombia, Argentina, and many others.
If you have questions, inquiries or require advice to set up your company in Chile, please don't hesitate to send an email to esaez@nss.cl or talk on Whatsapp at +56990102490.
