Starting a Business in Chile: A Guide for Expats

Published on April 22, 2026 and written by Cyril Jarnias

Moving abroad to start a new life and a new entrepreneurial adventure is a dream for many expatriates, and Chile, with its dynamic economy and incentives for entrepreneurship, offers a particularly attractive opportunity.

This guide is for aspiring business creators who wish to explore this promising market while enjoying the country’s cultural richness.

Dive into the intricacies of starting a business in Chile and discover how to navigate its legal and administrative aspects to turn your project into a success.

Whether to benefit from local skills or to target a global market from a stimulating work environment, Chile could well be the fertile ground you are looking for to bring your entrepreneurial vision to life.

Understanding Legal Structures in Chile

Chile offers several legal structures for business creation, each suited to specific needs, especially for expatriate entrepreneurs. Here are the main available forms, their characteristics, obligations, and tax implications:

Legal Structure	Number of Partners	Minimum Capital	Liability	Main Taxation	Governance
Limited Liability Sole Proprietorship (EIRL)	1 individual	None	Limited to contributions	Personal Income Tax or Corporate Tax	Direct management by the founder
Limited Liability Company (SRL or LTDA)	2 to 50	None	Limited to contributions	Corporate Tax	Decisions made by partners
Simplified Joint Stock Company (SpA)	1 or more	None	Limited to contributions	Corporate Tax	High flexibility, customizable management
Public Limited Company (SA)	2 or more	None (1/3 at creation)	Limited to contributions	Corporate Tax, increased obligations	Mandatory board of directors
Limited Partnership	2 or more	None	Limited for limited partners, unlimited for general partners	Corporate Tax	Different rights depending on partner type

Main Regulations and Obligations

• Registration: All companies must be registered with the Commercial Registry and obtain a RUT (Rol Único Tributario), an essential tax ID for tax and banking procedures.
• Articles of Incorporation: Drafting and notarization of the articles of incorporation, specifying the structure, governance, capital distribution, and operating rules.
• Transparency and Reporting: Public limited companies have increased obligations regarding transparency and governance (board of directors, annual report). Other structures, especially the SpA and SRL, benefit from more flexible management.
• Taxation: All companies are subject to corporate tax, except the EIRL which, depending on the activity, may be taxed under personal income tax. Mandatory monthly tax filings from registration.

Legal Process and Required Documents

1. Choice of business name (availability check via the Registro de Empresas y Sociedades).
2. Drafting and signing of the articles of incorporation before a notary.
3. Registration with the Commercial Registry.
4. Obtaining the RUT from the Servicio de Impuestos Internos (SII).
5. Official publication (in the Diario Oficial).
6. Opening a professional bank account (upon presentation of the RUT, articles of incorporation, and proof of address).

Advantages and Disadvantages for an Expatriate Entrepreneur

Structure	Advantages	Disadvantages
EIRL	Simple, fast, low cost, limited liability	Not well-suited for growth, limited image for fundraising
SRL	Ideal for SMEs, simple management, limited liability	Limited number of partners, less flexibility for bringing in new partners
SpA	High flexibility, open to one or more partners, ideal for attracting investors	Less known to traditional partners, governance needs to be well-structured
SA	Recognized for large companies, possibility of stock market listing, credibility	More complex process, heavier transparency and governance obligations
Limited Partnership	Clear separation between investors and managers	Unlimited liability for general partners, complex structure

Tax Implications and Governance Obligations

• All structures: Obligation for regular tax filings, payment of corporate tax, maintenance of compliant accounting.
• SA: Strict governance (board of directors, regular meetings, mandatory reporting).
• SpA/SRL/EIRL: More flexible governance, but still subject to a minimum of transparency and record-keeping.

Practical Tips for Expatriates

• Appointing a legal representative in Chile is mandatory if you are not a resident.
• Prefer the SpA to start with flexibility and open the capital to future investors.
• Carefully prepare the articles of incorporation to anticipate management and structural evolution.
• Anticipate banking procedures which can be demanding in terms of documentation.
• Get assistance from a local firm for drafting the articles of incorporation and tax management.

Tip: The “Tu Empresa en Un Día” system allows for quick online business creation, significantly reducing administrative delays.

Key Takeaways

• The choice of structure impacts the taxation, governance, and credibility of your project.
• The flexibility of the SpA appeals to many expatriates for its adaptability.
• Respecting tax and governance obligations is essential to avoid penalties and ensure the sustainability of the business.

Administrative Procedures for Expatriates

For expatriates wishing to start a business in Chile, it is essential to understand the administrative procedures related to obtaining visas, registering the company, and tax compliance. Here is a detailed overview of the steps to follow.

Visas for Business Creation

Expatriates generally need to apply for a Temporary Residence Visa or a Work Visa depending on their situation. For entrepreneurs, the Investor Visa is often the most suitable.

Visa Type	Purpose	Duration	Required Documents
Temporary Residence Visa	Stay and work in Chile	Up to 2 years, renewable	Valid passport, proof of legal status, employment contract or job offer, bank statements, proof of accommodation, ID photo
Work Visa (Sujeto a Contrato)	Work under contract with a Chilean company	Up to 2 years	Signed employment contract, resident application form, proof of qualifications, proof of funds
Investor Visa	Create or invest in a Chilean company	Variable depending on the project	Criminal record certificate, sponsorship letter from InvestChile, proof of investment, business plan

The application process is done online via the Servicio Nacional de Migraciones website. After submission, the applicant must appear at the Chilean consulate for the visa stamp. Processing times vary depending on the complexity of the case and the authorities’ workload.

Company Registration

Once the visa is obtained, the expatriate must register their company with the Chilean authorities. The main steps are:

• Obtaining the RUT (Rol Único Tributario): This tax identification number is essential for any commercial activity. It is obtained online on the SII (Servicio de Impuestos Internos) website.
• Filing the articles of incorporation and company formation: Documents to provide include the deed of incorporation, list of shareholders, RUT, and proof of address for the registered office.
• Opening a professional bank account: Necessary for commercial transactions and financial management.

Tax Filings and Specific Permits

Chilean companies must comply with strict tax obligations:

• Monthly and annual filings: To be done via the SII portal.
• Specific permits: Depending on the sector of activity (restaurants, healthcare, construction, etc.), additional permits may be required from local or sectoral authorities.

Resources and Practical Advice

• Chambers of Commerce: They offer personalized support for foreign entrepreneurs.
• Government Consultants: InvestChile provides support for foreign investors, especially for visa and registration procedures.
• Online Portals: The websites of the SII, Servicio Nacional de Migraciones, and InvestChile are essential resources.

Practical Tips:

• Anticipate administrative delays, which can be long depending on the period and complexity of the case.
• Ensure you understand the local legislation well to avoid delays or errors.
• Use a lawyer or specialized consultant if necessary, especially for tax and legal procedures.

In summary, starting a business in Chile requires rigorous preparation, a good understanding of the procedures, and anticipation of delays. The support of local and online resources is valuable for successfully completing your entrepreneurial project.

Tax Considerations and Access to Funding

Chilean Tax System

The main taxes that expatriate entrepreneurs face in Chile include:

• Corporate Tax:
  • Standard rate of 27% for large companies.
  • Reduced rate of 10% for SMEs, under conditions.
• VAT (IVA):
  • General rate of 19% on most goods and services.
  • VAT exemption on most products destined for export.
• Social Security Contributions:
  • Employers and employees contribute to various funds (health, retirement, work accident).
  • Rates vary depending on the type of coverage and salary, but the overall burden for the employer is generally between 5% and 25% of gross salary.
• Personal Income Tax:
  • Progressive rate from 0% to 40% depending on income level.
  • For foreigners: taxation only on Chilean-source income for the first three years, then on worldwide income after this period.

Summary Table of Main Taxes

Tax	SME Rate	Standard Rate	Observations
Corporate Tax	10%	27%	SME rate subject to conditions
VAT (IVA)	19%	19%	Export exemption
Income Tax	0-40%	0-40%	Progressive, based on income
Social Contributions	5-25%	5-25%	Based on type and amount of salary

• Exemptions:
  • VAT exemption on exports.
  • Exemption of foreign income for new residents for 3 years (extendable once).
• Filing Obligations:
  • Monthly VAT filing.
  • Annual results declaration (balance sheet, income statement).
  • Monthly payment of social charges.

Incentive Tax Regimes

• Special Economic Zones:
  • Certain regional statuses offer tax relief (exemption from profit taxes for specific activities).
• SME Regime:
  • Corporate tax reduced to 10% for small businesses meeting turnover and employee thresholds.
• Regional Platform:
  • Status allowing foreign companies to benefit from an exemption on profits not repatriated to Chile.
• Temporary Exemption for Expatriates:
  • Exemption from taxation on foreign income during the first three years of tax residency.

Double Taxation

Chile has signed numerous bilateral tax treaties to avoid double taxation, notably with France, Germany, Spain, Switzerland, and several other countries.

These agreements allow:

• Avoiding double taxation of dividends, interest, and royalties.
• Applying tax credits or exemptions depending on the income concerned.
• Reducing withholding tax rates on certain financial flows.

Local and International Funding

• Local Banks:
  • Business credit, opening credit lines, investment loans.
• Investment Funds:
  • Public and private funds, venture capital, innovation funds.
• Business Angels:
  • Active business angel networks in Santiago and tech hubs.
• Government Support Programs:
  • Start-Up Chile: grants, support, access to public funding.
  • CORFO: public agency offering guarantees, grants, preferential rate loans.

Access to Credit

Facilities:

• Accelerated process for companies with a banking history or Chilean partners.
• Facilitated access via public programs (CORFO).

Challenges:

• Credit application often more difficult for a foreign entrepreneur without local history.
• Frequent requirement for personal guarantees or surety by a Chilean resident.

Eligibility Criteria:

• Company solvency.
• Solid business plan.
• Banking reputation and credit history.
• Real or personal guarantees.

Repayment and Repatriation of Funds

Regulations:

• Profits can be freely repatriated provided local tax obligations have been met.
• The central bank requires a declaration for international transfers above a certain threshold.

Procedures:

• Justification of the origin of funds and payment of local taxes.
• Compliance with bank administrative procedures (KYC, anti-money laundering compliance).

Restrictions:

• No major restrictions on the repatriation of dividends and profits, provided tax compliance is maintained.

Practical Advice

• Surround yourself with local experts (accountants, tax lawyers) to:
  • Optimize the company’s tax structure.
  • Ensure compliance with local obligations.
  • Avoid costly errors in tax filing and payment.
• Prepare a solid and documented business plan to facilitate access to credit.
• Anticipate the provision of guarantees for funding applications.
• Check for the existence of double taxation agreements between Chile and your country of origin.
• Inform yourself about public aid and calls for projects for startups and SMEs.
• Maintain rigorous and up-to-date accounting to facilitate tax and banking procedures.

To remember: Chile offers a competitive tax environment and incentive regimes for foreign entrepreneurs, but the success of the implantation depends on good preparation, knowledge of the local system, and support from seasoned professionals.

Resources and Support for Expatriate Entrepreneurs

Resources and Support for Expatriate Entrepreneurs in Chile

Support Centers and Specialized Incubators

• Start-Up Chile
  The country’s first public accelerator, created by the Chilean government, it offers several support programs for foreign entrepreneurs:

• Access to seed capital (up to 40,000 USD)
• 2-year work visa and help with administrative setup (soft landing)
• Workspace, network of mentors, investors, and local/international partners
• Training, workshops, networking events

This program has allowed thousands of expatriates to create or develop their business in Chile and benefit from an environment conducive to innovation.

Learn more: Start-Up Chile by Corfo

Resource	Type of Support	Target Audience	Link or Reference
Start-Up Chile	Acceleration, funding, visa	Foreign entrepreneurs	Start-Up Chile by Corfo
CCI France Chile	Prospecting, creation, offices	French entrepreneurs	CCI France Chile
Prisma Francés	Network, mutual aid, events	French entrepreneurs	Prisma Francés

Government and Private Support Programs

• CORFO (Corporación de Fomento de la Producción)
  Offers various financial aid programs, non-dilutive grants, and support for startups and SMEs, accessible to foreigners with a project in Chile.

• Non-dilutive grants
  Allow keeping 100% of your capital while obtaining funds to launch or develop an innovative activity.

• Administrative support
  Public incubators like Start-Up Chile assist entrepreneurs with all procedures: visa, opening a bank account, tax formalities, etc.

Professional Networks and Entrepreneur Clubs

• Innovation Club (CCI France Chile)
  Brings together active members of the Franco-Chilean ecosystem and organizes meetings to foster innovation and experience sharing.

• Prisma Francés
  Association created by expatriates to help newcomers integrate, network, and exchange on the challenges of entrepreneurship in Chile.

• Union of French Abroad (UFE)
  Mutual aid, information, and support network for French expatriates, with practical advice on business creation.

Legal, Tax, and Administrative Consulting Services

• Specialized Firms
  Numerous bilingual law and accounting firms offer services tailored to the needs of foreign entrepreneurs:

• Company creation, drafting of articles of incorporation
• International taxation, VAT, local taxes
• Labor law, contracts, administrative management

• CCI France Chile
  Offers personalized support, from creation to daily business management (recruitment, domiciliation, regulatory advice).

Testimonials and Case Studies

“The support from Start-Up Chile allowed me to raise funds quickly, integrate into the local ecosystem, and meet strategic partners to develop my activity in Latin America.”

French entrepreneur, beneficiary of the Start-Up Chile program

“Thanks to Prisma Francés, I was able to exchange with other expatriates, share practical advice, and avoid the main administrative pitfalls when creating my company.”

Expatriate settled in Santiago for 5 years

Opportunities and Challenges Encountered

• Opportunities: facilitated access to funding, environment conducive to innovation, administrative support, wide professional network.
• Challenges: language barrier, cultural adaptation, complexity of local law, need to integrate into the Chilean ecosystem to maximize impact.

To Go Further

• Start-Up Chile by Corfo
• CCI France Chile
• Prisma Francés
• Union of French Abroad (UFE)