Starting a Business in Chile: Key Steps and Considerations

Starting a Business in Chile: A Step-by-Step Guide

1. Time to Set Up a Company in Chile

The process may take more than 6 months, approximately 130 days.

2. Costs Associated with Starting a Business

Costs vary depending on the type of company, with a fixed value of approximately $550. Examples:

• Industrial Company: $1,350
• Food Company: $1,270

3. Limited Liability Company Procedures

An individual limited liability company is a legal entity with limited liability. The owner's personal assets are only liable to the extent of their capital contribution. The company is liable with all its possessions.

A company is an association of individuals or legal entities engaged in commercial activity, pursuing a profit or gain shared among partners based on their contribution.

Types of companies include:

• Open Company
• Closed Company
• Limited Liability Company
• General Partnership
• Limited Partnership

4. Professional Services Tax

A 10% tax is applied, which may be retained by the institution or company contracting the services, or declared and paid by individual taxpayers.

5. Initiation of Activities

This legal procedure initiates commercial production or any business activity. It also marks the beginning of a taxpayer's obligations, subject to tax application until the term ends.

6. Sale Tickets

A tax document for First Category activities, reporting the taxpayer's status as a tax withholding agent. Preparation should be assigned to a printing company for legalization by the SII (Servicio de Impuestos Internos).

Unlike a bill, a sale ticket only generates a Tax Debit for the issuer.

7. Professional Societies

Examples include lawyers.

8. Step Zero

A procedure for low-risk production activities and environmental health. It involves delivering a medical report or certificate of customs destination for food to the health authority, typically within an hour.

9. Commercial Patent

Issued by the Department of Municipal Licenses, it permits secondary or tertiary gainful activity within a municipality. This procedure must be completed before installing the premises.

Before leasing or buying premises or land for commercial use, consult the Regulatory Plan of each municipality to avoid closures. The owner or legal representative must request this document from the Municipality for the company's address.

10. Hiring Staff

The Labour Code specifies contract types, minimum wages, pension payments, and conditions companies must comply with when hiring staff.

Provisional steps include affiliation with AFP (Administradora de Fondos de Pensiones), Fonasa (Fondo Nacional de Salud), or Isapre (Institución de Salud Previsional) compensation fund.

11. Trademark

Trademark registration takes approximately 145 days, with costs varying depending on the type of registry (trade of goods, services, retail, industrialists, and advertising slogans).

12. Banking

Once a company's business is initiated, financial transactions naturally follow. Essential tools for managing cash flows and financial accounting include:

• Opening a current account
• Visa card
• Electronic checkbook