Creating a Company in Chile from the United States

Starting a business in Chile is an excellent opportunity for American entrepreneurs who wish to expand their business into Latin America. Chile stands out as one of the most stable countries in the region and offers a favorable environment for foreign investment. 

In this guide, we explain how to set up a company in Chile from the United States, the steps you need to follow, the requirements, and some useful tips to get started.

Why Create a Company in Chile from the United States?

In 2024, Chile has become an attractive destination for foreign investors due to its political and economic stability, as well as having trade agreements with many countries, including the United States. 

The Free Trade Agreement with the U.S. Opens Doors for You

If you're considering establishing your company in Chile, you're in the right place! Thanks to the Free Trade Agreement (FTA) between Chile and the United States, entering the Chilean market can be an experience as smooth as opening a can of soda on a hot day (and believe me, success can be just as refreshing).

What Does the Free Trade Agreement Offer You When Investing in Chile?

The FTA isn't just about opening markets and eliminating tariffs, no sir! It also gives you the security and confidence you need to get your business rolling on Chilean soil without complications. Let's look at some of the juiciest benefits:

Fair Treatment and Total Protection When Creating Your Company in Chile

Worried that the rules might change overnight or that your investments won’t be protected? Forget about that. The FTA ensures that you will have the same treatment as any Chilean company.It's like being given the keys to the house: you enter with the assurance that the doors are securely locked and that no one will change the locks without notifying you.

Additionally, you have full protection against expropriation without fair compensation. In other words, your company and assets are as secure as if they were in a bank vault.

Ease of Creating and Operating Your Company in Chile

In Chile, starting a business is as simple as ordering a coffee (and probably just as fast). The FTA and reforms in Chile have made it easier to create companies, allowing you to register your business online in just a matter of hours. inscribir tu empresa en línea y en cuestión de horas. And the best part is that you can operate in almost any sector: from mining and technology to financial services and agribusiness. You choose the playing field!

Access to Key Services

Is your company in the financial, telecommunications, or technology sector? Excellent! The FTA ensures that you can enter these sectors without barriers. Imagine opening a branch of your tech startup or a fintech in Santiago, Chile, and operating under the same rules as any local company. Chile sets no limits; if you're here to innovate, the field is ready for you to run.

Stability and Transparency: The Classic of Chile

If there’s one thing that characterizes Chile in the region, it’s its economic and political stability. The FTA reinforces this, ensuring that the rules of the game won't be changed arbitrarily. 

And if things get complicated (which can always happen in business), the FTA has a mechanism for international arbitration to resolve disputes fairly and transparently. 

This way, you can focus on growing your business while the rules remain clear and predictable.

Chile: Your Gateway to Global Markets

Chile is not just a market on its own; it's a springboard to the rest of the world! With a network of trade agreements covering over 60 countries, you can use Chile as your operations hub to export to other key markets, such as the Asia-Pacific region. Can you imagine the potential of expanding to countries like Japan or South Korea from a solid base in Santiago? It's like having a top-notch logistics hub right at your fingertips.

Protection of Intellectual Property and Technology

If innovation is your thing, Chile is also your place. The FTA ensures that your intellectual property will be well protected under international standards. 

This means that if you bring cutting-edge technology or new software, you can rest assured: your patents, trademarks, and rights are safe. 

Additionally, e-commerce and digital trade are promoted, making it easier for tech startups and digital companies to operate.

In Summary, Why Create a Company in Chile from the United States?

If you're looking for a safe place with clear rules, access to global markets, and an investment-friendly environment for growth, Chile is your destination. 

The Free Trade Agreement with the United States provides you with the tools and facilities to make setting up your business as easy as stepping into the country. 

And with such a diverse and dynamic market, the opportunities are there, ready for you to seize.

Requirements for Creating a Company in Chile from the United States

To create a company in Chile from the United States, it is important to meet certain legal and administrative requirements. Below are the main ones:

Have a Legal Representative in Chile

This must be a person residing in Chile who has the authority to represent the company. The legal representative can be Chilean or a foreigner with permanent residency in the country and will act as the General Manager of the company in Chile. 

At Iberocapital, we offer this service for 200 USD per month. If you want to know more about this service, you can check it out on our Legal Representative Service.

Obtain a Foreign Investor RUT (Tax ID) 

If you are not a Chilean national or a permanent resident in Chile, you will need to obtain a Foreign Investor RUT (Tax ID) to be able to operate legally in Chile.

For this, you will need a proxy, who will be the person authorized to process this Foreign Investor RUT with the Internal Revenue Service (SII) in Chile.

This power of attorney must be notarized in Chile, along with your identity document and passport. If the power of attorney is granted outside of Chile, such as from the United States, it must be apostilled or signed at a Chilean Consulate in the United States and then legalized by the Ministry of Foreign Affairs in Chile.

In summary, if you are in the United States and wish to obtain a Foreign Investor RUT, you must grant a broad special power of attorney to a person in Chile so they can process it with the Internal Revenue Service (SII).

This power of attorney must be apostilled or signed by a notary public in the United States, typically a Chilean consul.

Detailed Tutorial for Apostilling a Broad Special Power of Attorney in the United States for Use in Chile

Objective: Obtain a broad special power of attorney, duly apostilled in the United States, granting authority to a Chilean citizen to open and operate a company in Chile. Specifically, this person will legally represent you in Chile for obtaining your Foreign Investor RUT.

Step 1: Draft the Broad Special Power of Attorney

1. Legal Advice:
   • At Iberocapital, we offer the power of attorney drafted by a lawyer, presented in both Spanish and English simultaneously. You can consult us for the price of drafting the document. You can also consult your own lawyer to ensure that the power of attorney meets all the legal requirements of both Chile and the United States.
2. Power of Attorney Content:
   • It must clearly specify the powers granted to the proxy.
   • Include details such as opening bank accounts, signing contracts, representation before authorities, etc.
3. Document Language:
   • It is advisable to draft it in Spanish to facilitate its use in Chile.
   • If it is drafted in English, you may need a certified translation into Spanish later.

Step 2: Notarize the Power of Attorney

1. Locate a Notary Public:
   • Find an authorized notary public in your state.
   • You can find one at banks, post offices, or through online directories.
2. Preparation for Notarization:
   • The grantor of the power of attorney must appear in person.
   • Bring a valid identification (passport, driver's license, etc.).
3. Signature and Notarization:
   • Sign the power of attorney in the presence of the notary.
   • The notary will verify your identity and certify your signature.
   • Note: If the document is in Spanish, confirm with the notary that they can notarize documents in that language.

Step 3: Obtain the Apostille

1. Identify the Competent Authority:
   • In the United States, the State Secretaries of each state issue apostilles for notarized documents.
2. Gather the Necessary Documents:
   • Original notarized power of attorney.
   • Apostille application form (available on the website of the corresponding Secretary of State).
   • Payment of the fee required (varies by state).
   • Prepaid return envelope, si envías los documentos por correo.
3. Submit the Application:
   • In person: Visit the office of the Secretary of State if they offer this service.
   • By mail:
     • Send the documents to the address provided on the official website.
     • Use a reliable courier service with tracking.
4. Processing Time:
   • It can vary from one to several business days..
   • Check the Secretary of State's website for updated information.
5. Receive the Apostille:
   • The apostille will be attached to the notarized power of attorney.
   • Verify that all seals and signatures are correct.

Step 4: (Optional) Certified Translation

1. Need for Translation:
   • If the power of attorney is in English, it is advisable to translate it into Spanish for use in Chile.
2. Hire a Certified Translator:
   • Find a certified public translator or certified translator.
3. Notarize and Apostille the Translation:
   • Some countries require the translation to be notarized and apostilled.
   • Consulta con las autoridades chilenas si este paso es necesario.

Step 5: Send the Document to Chile

1. Select the Shipping Method:
   • Use international courier services like DHL, FedEx, or UPS.
   • Make sure the service offers tracking. and confirmación de entrega.
2. Additional Documentation:
   • Include copies of identification if necessary.
   • Accompany the power of attorney with an explanatory letter if you deem it appropriate.
3. Digital Apostille: If the document has a digital apostille, it will not be necessary to send it to Chile physically.

Summary: By following these steps, you can obtain a broad special power of attorney, apostilled in the United States, allowing a Chilean citizen to legally open and operate a company in Chile in accordance with international regulations.

There is also another way to grant the power of attorney, which is by signing it before a Chilean notary. We will explain the steps below:

Procedure to Legalize or Sign a Power of Attorney from the United States Before a Chilean Notary

If you wish to proceed with the signing before a Chilean consulate in the United States, you should contact the consulate for document submission and verification.

It’s important to note that Chile has both Honorary Consulates and General Consulates.

It is important to verify if the consulate has a Public Notary, so we will list the Chilean consulates in the United States along with their jurisdictions.

The jurisdiction of a consulate refers to the specific geographical region in which the consulate has authority to perform its functions and provide consular services. 

In simple terms, it is the defined area in which the consulate can assist its citizens and act on behalf of its government for legal, administrative, and consular protection matters. This jurisdiction can cover one or several cities, states, or provinces, depending on the location and scope of the consulate.

This information is updated as of October 1, 2024.

CONSULAR SECTION IN WASHINGTON D.C.

DIEGO BUNSTER ZEGERS

Second Secretary – Consul 

(As of January 14, 2022)

Authorized consular staff as Public Notary 

Eduardo Fredz Arriagada

(As of November 13, 2007)

CONSULATE GENERAL IN CHICAGO

JAIME ANDRÉS CORTES-MONROY ROJAS

Counselor-Consul General 

(As of August 16, 2022)

Authorized consular staff as Public Notary

Angélica Araya Angulo 

(As of November 14, 2003)

Viviana Gaete Merino 

(As of September 22, 2010)

HONORARY CONSULATE IN DETROIT, MICHIGAN (DEPENDENT ON C.G. CHICAGO)

Honorary Consul without Authority to Act 

MARIELA GRIFFOR

Honorary Consul 

(As of May 28, 2007)

HONORARY CONSULATE IN KANSAS CITY, MISSOURI (DEPENDENT ON C.G. CHICAGO)

Honorary Consul without Authority to Act as Public Notary 

ROBERT W. EVANS 

Honorary Consul 

(As of April 27, 2001)

HONORARY CONSULATE IN MINNEAPOLIS, MINNESOTA (DEPENDENT ON C.G. CHICAGO)

Honorary Consul with Authority to Act as Public Notary

TERESA PALACIOS JARA 

Honorary Consul 

(As of May 9, 2012)

CONSULATE GENERAL IN HOUSTON

FELIPE ALEJANDRO DÍAZ IBÁÑEZ

Counselor-Consul General 

(As of February 16, 2022)

Authorized consular staff as Public Notary 

Ángela Carola Puentes Hidalgo 

(As of June 24, 2004)

HONORARY CONSULATE IN NEW ORLEANS (DEPENDENT ON C.G. HOUSTON)

Honorary Consul without Authority to Act as Public Notary 

ÁNGEL PELAYO CARRERAS

Honorary Consul

(As of October 6, 1992)

HONORARY CONSULATE IN DALLAS, TEXAS (DEPENDENT ON C.G. HOUSTON)

Honorary Consul without Authority to Act as Public Notary

JORGE CLAUDIO CORREA DURAN

Honorary Consul 

(As of August 2, 2024)

HONORARY CONSULATE IN SAN ANTONIO (DEPENDENT ON C.G. HOUSTON)

Honorary Consul without Authority to Act as Public Notary 

MARCO BARROS CÉSPEDES

Honorary Consul

(As of May 24, 2013)

CONSULATE GENERAL IN LOS ANGELES

FRANCISCO JAVIER LEAL LISBOA

Second Secretary-Consul General

(As of May 1, 2023)

Authorized consular staff as Public Notary

María Fernanda Romero Zuleta

As of September 15, 2014. 

HONORARY CONSULATE IN HONOLULU (DEPENDENT ON C.G. LOS ANGELES)

Honorary Consul with Authority to Act as Public Notary

GLADYS VERNOY

Honorary Consul 

(As of June 12, 2002)

HONORARY CONSULATE IN LAS VEGAS, NEVADA (DEPENDENT ON C.G. LOS ANGELES)

Honorary Consul with Authority to Act as Public Notary

PAULINA ELENA BIGGS JIMENO

Honorary Consul

(As of March 14, 2002)

HONORARY CONSULATE IN PHOENIX, ARIZONA (DEPENDENT ON C.G. LOS ANGELES)

Honorary Consul without Authority to Act as Public Notary 

KENNETH PATRICK SMITH 

Honorary Consul 

(As of November 2, 2010)

CONSULATE GENERAL IN MIAMI

DANIEL VICENTE ORTIZ PULGAR

Counselor-Consul General

(As of April 16, 2023)

SEBASTIÁN MARÍN LABBÉ

First Secretary – Deputy Consul

(As of June 16, 2020)

Authorized consular staff as Public Notary

Sergio Javier Parga Miranda

(As of November 1, 2017)

HONORARY CONSULATE IN ATLANTA (DEPENDENT ON C.G. MIAMI)

Honorary Consul without Authority to Act as Public Notary

ÉRIKA MONCKEBERG

Honorary Consul 

(As of January 13, 1998)

HONORARY CONSULATE IN ORLANDO (DEPENDENT ON C.G. MIAMI)

Honorary Consul without Authority to Act as Public Notary

SERGIO LARACH

Honorary Consul 

(As of October 1, 2008)

HONORARY CONSULATE IN CHARLESTON (DEPENDENT ON C.G. MIAMI)

Honorary Consul without Authority to Act as Public Notary

MARÍA ASUNCIÓN TERESA ANTONIA CÓRDOVA REQUENA

Honorary Consul

(As of January 8, 2018)

HONORARY CONSULATE IN SAN JUAN, PUERTO RICO (DEPENDENT ON C.G. MIAMI)

Honorary Consul with Authority to Act as Public Notary

CYRIL MEDUÑA GUESTIN

Honorary Consul

(As of January 21, 2008)

Authorized consular staff as Public Notary

Jessica Robles Ramírez 

(As of April 14, 2008)

CONSULATE GENERAL IN NEW YORK

FELIPE ALLARD SOTO

First Secretary-Consul General

(As of January 16, 2024)

RODRIGO IGNACIO MATAMOROS ORTIZ

Second Secretary – Deputy Consul

(As of October 1, 2023)

Authorized consular staff as Public Notary

Gladys Sáez Maldonado

(As of March 17, 1994)

CONSULATE GENERAL IN SAN FRANCISCO

JAIME FRANCISCO ALLIENDE LEIVA

Counselor Minister – Consul General

(As of September 16, 2020)

Authorized consular staff as Public Notary

María Jacqueline Jorquera Lorca

(As of March 19, 2001) 

HONORARY CONSULATE IN SEATTLE (DEPENDENT ON C.G. SAN FRANCISCO)

Honorary Consul without Authority to Act as Public Notary

ANDRÉS SERGIO BARRÍA ROMÁN

Honorary Consul

(As of December 14, 2017)

Once you have chosen the consulate where you will sign the power of attorney, you should contact the consulate directly. Keep in mind that the consulate must have staff who can act as Public Notary (MFP).

Once you have signed the power of attorney before the Public Notary, it must be legalized in Chile by the Ministry of Foreign Affairs. Therefore, the document must be sent to Chile for further legalization.

Once the document is legalized, along with your identity documents, it must be submitted to the SII through its online platform to process the Foreign Investor RUT.

Once you have obtained the Foreign Investor RUT, you can proceed with the formation of the company through the One-Day Company System or through the Commercial Registry. However, you must first choose the type of company you are interested in establishing in Chile.

Types of Companies in Chile

When creating a company in Chile, you must choose from several types of companies, depending on your needs and business objectives.

We have created an article that explains in detail the types of companies in Chile, and we will also summarize the main and most common ones in this article:

Individual Limited Liability Company (EIRL)

It is a suitable option for a single person who wishes to have a company with limited liability. The EIRL has its own legal personality, separate from the personal assets of the owner.

Company by Shares (SpA)

It is a company that allows for the flexible entry of new shareholders, making it ideal for startups and businesses seeking financing or investors. Only one shareholder is required to establish it, and it has fewer formalities than other types of companies.

Limited Liability Company (LLC)

It is a company formed by a limited number of partners (a minimum of 2 and a maximum of 50), where each partner has limited liability to the amount of their contribution. It is ideal for small and medium-sized family businesses or those with few partners.

Joint-Stock Company (SA)

It is a type of company recommended for larger projects. The SA can be open or closed, and its shares can be sold freely. It requires compliance with various legal formalities and is suitable for companies looking to go public or have many shareholders.

Each type of company has its advantages and specific requirements, so it is essential to assess which one best fits the goals and characteristics of your business.

Step by Step to Create a Company in Chile from the United States

Next, we explain step by step how to establish your company in Chile from the United States:

Choosing the Type of Company

The first step is to choose the type of company that suits your needs. As mentioned before, the Company by Shares (SpA) is often the most flexible option.

Appoint a Legal Representative

To create a company in Chile from the United States, you need a legal representative in Chile who can carry out the necessary procedures. This representative must be a resident of the country, either Chilean or a foreigner with permanent residency.

Obtain a Foreign Investor RUT (Tax ID)

This step must be done by a person in Chile, who can be the attorney-in-fact or representative, and they will need to process it at the Internal Revenue Service office.

Choosing the Company Incorporation System

You must decide whether you want to establish your company under the traditional system or through the Company in a Day system (www.registrodeempresasysociedades.cl).

• Traditional System: This system involves signing a public deed before a notary, registering the company in the Commercial Register, and publishing an extract in the Official Gazette. It is a more formal process and may take longer.
• Sistema de Empresa en un Día: Este sistema permite constituir la empresa de forma más rápida y menos costosa mediante un formulario electrónico que se completa en línea. Es ideal para emprendedores que buscan optimizar tiempos y recursos, ya que la inscripción se realiza de manera digital y simplificada. Si se ha escogido el sistema de Empresa en un Día, el representante legal deberá ingresar a www.registrodeempresasysociedades.cl y proceder con el registro de la sociedad, indicando el nombre, objeto y socios (si corresponde). En Iberocapital hemos hecho un video que indica el paso a paso para la constitución de la sociedad: Ver Video.

The next step is for the partners to sign the deed, which is done through an advanced electronic signature or before a notary. If the partners are not in Chile, then the legal representative must be authorized to sign on behalf of the partners with a foreign investor RUT.

The attorney-in-fact must go to a notary in Chile with the power of attorney, notarized or legalized at the Chilean consulate, and ask the notary to authorize the signing of the deed.

Once the company has been signed, a RUT number will be obtained, and the next steps are to complete the initiation of activities with the SII..

Nuestra recomendación es que constituyas la sociedad bajo el sistema de empresa en un día, puesto que permite ahorrar costos y la emisión y administración de la sociedad por internet.

Costs of the Company Formation Process in Chile from the United States

Creating a company in Chile from the United States has different associated costs that vary depending on the type of company and the legal services required. Below are some of the most common costs involved in the formation process:

Legal Representative 

In countries like Brazil, Mexico, and Chile, it is necessary to have a Legal Representative. In the case of Chile, this representative must be Chilean or a Permanent Resident.

If you do not have a Legal Representative in Chile, at Iberocapital, we provide the legal representative service for a cost of 200 USD. per month. This ensures that the company meets legal requirements and has an authorized representative to operate in Chile.

In summary, if you have a Chilean who can assume the role of Legal Representative, this procedure will cost you. at no cost., otherwise, you can hire our legal representative service. for 200 USD per month.

Obtaining RUT for Foreign Investor.

The process of obtaining an Investor RUT has no associated cost; it can be processed online or in person at SII offices. To do this, you must meet all the requirements for the procedure.

Puedes contratar el servicio de obtención de RUT de Inversionista con Iberocapital, para que realicemos este proceso por ti.

This process has a cost of 120 USD, which includes drafting the power of attorney, managing the signature at the Chilean consulate, subsequent legalization in Chile, and the RUT registration for the Investor with the Internal Revenue Service (SII). 

It does not include the costs associated with signing at some consulates, as while some Chilean consulates do not charge fees, others do, depending on the number of pages of the document to be signed. 

The cost of sending the documents to Chile is also not included, as once they are signed, legalized, or apostilled, they must be physically sent to Chile.

Lastly, you will also need to pay a fee of 30 USD for the notarization service, as it is advisable to have the document notarized before a notary here in Chile.

In conclusion, doing the process on your own will not incur additional costs., but if you wish to hire a specialized law firm and save time, the cost is 120 USD + consulate fees + shipping costs to Chile + notarial fees in Chile, a payment you will make only once.

Establishing a domicile to create a company in Chile from the United States.

Your Chilean company must have both a corporate and tax address. At Iberocapital, we offer Virtual Office and Virtual Warehouse services, which consist of renting you virtual space at our offices or warehouses located in the historic district of Santiago.

The Virtual Office service has an annual cost of 99 USD, and the Virtual Warehouse service also has a cost of 99 USD.

Depending on your company's line of business, you may or may not require a virtual warehouse. For example, if your company is engaged in importation, marketing, or a sector that handles goods, you will need to rent a virtual warehouse to demonstrate where your company stores the merchandise.

If your company is in the technology sector or can operate virtually or online, you will only need a virtual domicile.

Deed Signing

If the traditional system is used, notarial fees for signing the deed may vary, while in the system of Company in a Day. an advanced electronic signature can be used, which also has an associated cost. If you do not have an advanced electronic signature, you must sign before a notary, and this signature has a cost of 20 USD.

Registration in the Commercial Register: In the traditional system, registering the company in the Commercial Register and publishing in the Official Gazette incurs an additional cost that can range from 100 to 300 USD, depending on the length of the documents. If the formation is done under the company-in-a-day system, this cost is not incurred.

Obtaining the RUT and Starting Activities

Obtaining the RUT under the company-in-a-day system is automatic and free; it is obtained once the deed has been signed. In contrast, if the company has been established under the traditional system, you must consider the associated cost of processing a RUT with the SII. 

Keep in mind that obtaining the RUT and starting activities is free, but the fees charged by different law firms may vary. This procedure is done once the company has been published in the Official Gazette, and this management has a cost that ranges around 20 USD.

At Iberocapital, we offer different company formation plans that include various procedures. If you want your company to be up and running, you can hire our complete company formation plan. for a cost of 120 USD per month.

Municipal Business License Processing

We offer a comprehensive service for processing the municipal license at the Santiago Centro Municipality for a cost of 30 USD. 

This service includes the complete drafting of all necessary documentation and its submission to the Illustrious Municipality of Santiago. Once your company's business license has been successfully processed, you will need to pay the municipality an annual fee of 70 USD.

Conclusions

In conclusion, if you wish to establish your company with Iberocapital, the costs for processing the procedures are as follows:

One-time Payment Services: 270 USD.

Recurring Services: 265 USD.

Additionally, keep in mind that you will need to pay monthly sales taxes (VAT), which is 19%, along with PPM payments.

Also, annually, you will need to pay the annual tax on profits, which depends on your company’s tax regime.

At Iberocapital, we offer the service of company rental starting at an amount of 200 USD.

Finally, I want to remind you that at Iberocapital, in addition to teaching you how to create a company in Chile from the United States, we offer a comprehensive service that includes guidance throughout the entire company formation process, helping you optimize time and resources.

You can schedule a call or message us on WhatsApp if you have any questions.