Chile

Company Formation in Chile

Republic of Chile — Conservador de Bienes Raíces (Tu Empresa en un Día)

Formation Time

3–5 business days

Min. Capital

No minimum

Corporate Tax

27% First Category Tax (CIT) / 25% Pro-Pyme small business rate

Foreign Ownership

100%

Overview

Chile is widely recognized as the most politically stable, transparent, and economically competitive country in Latin America. As an OECD member nation with the highest credit rating (A/A2) and lowest sovereign risk in South America, Chile is the premier regional hub for venture capital, green energy, mining technology, and fintech. Under the Chilean Commercial Code, the **Sociedad por Acciones (SpA)** is the undisputed gold standard entity for startups and international investors. An SpA can be formed by a single foreign shareholder, requires no board of directors, allows multiple share classes, and can be registered rapidly through the government's digital 'Tu Empresa en un Día' system. Chile is also world-renowned for Start-Up Chile — the government accelerator that has backed thousands of tech startups with equity-free capital and fast-track tech visas.

OECD member

#1 credit rating in Latin America

SpA single-shareholder structure

Start-Up Chile accelerator

US-Chile tax treaty ratified

Why Choose Chile

Highest sovereign credit rating (A/A2) and lowest economic risk in Latin America

OECD member country with transparent legal, corporate, and banking frameworks

Sociedad por Acciones (SpA) allows 100% single-shareholder ownership and flexible bylaws

Start-Up Chile — world's top public accelerator providing equity-free grants and tech visas

Santiago ('Chilecon Valley') is the leading venture capital and startup capital in South America

Extensive network of 36 double taxation treaties (including with the US, UK, Canada, and EU)

Global leader in lithium, copper, green hydrogen, and renewable energy investment

Fast electronic incorporation through the 'Tu Empresa en un Día' portal

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
SpA (Sociedad por Acciones)	100%	1 administrator	None	27% First Category Tax (25% for Pro-Pyme qualifying SMEs)	Tech startups, venture capital, e-commerce, consulting, foreign subsidiaries
Sociedad de Responsabilidad Limitada (SRL)	100%	1 manager	None	27% First Category Tax; pass-through election under US tax rules	Professional services, joint ventures, family businesses

Step-by-Step Formation Process

Investor RUT Acquisition

3–5 days

Obtain tax identification numbers (RUT) for foreign shareholders from the SII.

Drafting & Digital Constitution

1–2 business days

Draft SpA statutes and execute electronically via Tu Empresa en un Día.

Company RUT & Start of Activities

2–3 days

Obtain company RUT and file 'Inicio de Actividades' with the SII.

Electronic Invoicing (Facturación Electrónica)

2–3 days

Certify electronic invoicing and digital signature with the SII.

Commercial Bank Account Opening

2–4 weeks

Open corporate CLP and USD bank accounts with leading Chilean banks.

Costs & Fees

Government / License Fee	USD 150+
Our Service Fee	USD 2,200 – 4,500
Annual Renewal	USD 1,000+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Chile has the soundest banking sector in Latin America, regulated by the Financial Market Commission (CMF). Major commercial banks offer robust corporate facilities in CLP and USD.

Account Opening Time

2–4 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Banco Santander ChileBanco de ChileBCI (Banco de Crédito e Inversiones)Scotiabank ChileItaú Chile

Tax Overview

Corporate Tax

27% First Category Tax (25% for Pro-Pyme qualifying SMEs); 21% federal CIT

Personal Income Tax

0%–40% progressive personal income tax

VAT / Sales Tax

19% (IVA)

Capital Gains Tax

Taxed as ordinary income at 27%

Withholding Tax

35% statutory withholding on dividends (with full 100% tax credit for 27% CIT paid under tax treaties)

Double Tax Treaties

36 countries

Under Chile's double tax treaties (including the US-Chile treaty ratified in 2023), foreign shareholders receive a full 100% tax credit for corporate tax paid, reducing effective withholding tax on distributed profits.

Frequently Asked Questions

What is an SpA (Sociedad por Acciones) in Chile?

The SpA is Chile's most modern and flexible corporate entity. It can be formed by a single foreign shareholder, does not require a formal board of directors, permits multiple classes of shares, and can easily issue stock options to employees, making it the standard vehicle for tech startups and venture capital in South America.

What is a Chilean RUT number?

A RUT (Rol Único Tributario) is the universal tax identification number issued by the Chilean Internal Revenue Service (SII). Both foreign investors and the Chilean company itself must obtain a RUT before operating or opening bank accounts.

Do I need a resident legal representative in Chile?

Yes. Chilean tax regulations require every company to appoint a resident legal representative (Representante Legal) who holds an active Chilean RUT to handle official tax declarations and receive formal notifications. Incorp International provides this statutory service.

What is Start-Up Chile?

Start-Up Chile is the world-renowned public business accelerator created by the Chilean Government (CORFO). It provides foreign entrepreneurs with equity-free grants of up to $100,000 USD, a 1-year working visa, and access to the Santiago startup ecosystem.

How does the US-Chile Double Taxation Treaty work?

Ratified in late 2023, the US-Chile tax treaty reduces withholding tax rates on cross-border dividends, interest, and royalties between the two countries, and ensures that US investors in Chilean SpAs receive full credit for Chilean corporate taxes paid.

Can foreign founders incorporate in Chile remotely?

Yes. By executing an apostilled Power of Attorney, foreign founders can complete 100% of the formation, tax registration (SII), and corporate bank setup without traveling to Chile.