Every Step on Company Incorporate in Chile That You Need to Understand
If you’re looking for an easy place to do business, Chile is the country to invest in. After the introduction of the new system, the company incorporate in Chile is commendable. According to the law, the process is referred to as “Company in a day” (Empresa en un Dia) and does not necessarily mean the abolishment of the old system.
However, the introduction of a new system does not mean that it does come with its challenges and to iron out some of the grey areas 3E Accounting Indonesia comes in handy.
I bet you’ll enjoy several other business consultancy services including the following:
- Payroll and corporate secretarial services
- Accounting and legal services
- Bookkeeping and auditing services
- Taxation services
- Incorporation of the company
- Business permit renewal.
The choice is at your disposal as you contemplate registering your company in Chile.
Electronic Register for Companies
Under the new law, one can create, amend, and transform using the RUT number by developing an Electronic Register for Companies controlled by the Ministry of Economy. To operate the system you must possess an Advanced Electronic Signature (Firma Electronica Avanzada, FEA). The system necessitates each partner to have their own signature to act on the Register. The law mandates that the document signed at the Notary by the representative on behalf of the partner(s).
Statutory Documents of Incorporation
Now, the process of company incorporate in Chile begins with the drafting of the statutory documents of incorporation. You must start by filling the stipulated forms which will vary with the type of business structure. The moment the form is complete, the system will create an electronic draft in pdf format. When it comes to issues about the different types of clauses governing each structure, you must consult a lawyer or a consultancy firm of great reputation.
The good news is that after the last partner has signed the documents of incorporation, the system automatically generates a Tax Identification Number (Rol Unico Tributario, RUT) legitimizing the existence of the company.
Company Business Name
Every company must have a business name to operate in Chile legally. Before incorporating a company, you must first check the availability of your proposed company names with the Company Registry. The law recommends that you have at least three alternative company names in the event there’s a decline on the first two. You must also ensure that the Spanish abbreviation “SRL” or “SA” is included at the end of the company name.
Chile has different types of business structures, and the Limited Liability Company (SRL) is the most preferred structure by investors. Some of the requirements that you should meet include the following:
- A minimum of two shareholders and one director. The maximum number of shareholders is fifty (50).
- No minimum share capital required
- No reporting or filing of audited accounts or financial statement with the tax authorities
- Foreigners can own 100 percent of shares
It follows that you must prepare your Public deed and the by-laws or Memorandum of Association before submitting them to the notary for certification as part of company incorporate in Chile. The Article of incorporation is notarized and recorded in a public deed with an excerpt published in the Official Gazette with the Commercial Registry.
Tax Identification Number
With the Tax Identification Number, you’ll be able to open a corporate bank account. Again, it is imperative to make a declaration of the start of activities at the Tax Authority to complete the process of registration.
Before commencing with your business, you must ensure that you obtain a business permit from the relevant municipality relating to the type of business you’re operating. Similarly, the Employment Act requires you to register with Social Security and accident insurance.
In case you find the process of complying with the taxation cumbersome, you can contact 3E Accounting Indonesia and get the best services at the most affordable cost.