How to Set Up a Business in Chile as a Canadian

Chile, known for its stable economy and openness to international trade, has become an attractive destination for Canadian entrepreneurs. 

With a Free Trade Agreement in place between the two countries, establishing a business in Chile offers benefits such as low tariffs, facilitating the import and export of goods; investment protection, providing a secure legal framework for investors; and access to commercial dispute resolution through international mechanisms.

These advantages, combined with modern infrastructure and a skilled workforce, make Chile a strategic location for expanding your operations from Canada.

Legal Requirements and Types of Companies in Chile

To establish a company in Chile, it's essential to understand the different types of business structures. 

The most common are the Limited Liability Company (SRL) and the Stock Corporation (SpA). 

The SRL is ideal for small and medium-sized businesses, with a limited number of partners. On the other hand, the SpA offers greater management flexibility and the possibility of issuing shares, making it easier to attract investors. 

Both types of entities require the drafting of corporate bylaws and their registration with the Commercial Registry or incorporation under the “company in a day” model, as well as obtaining a Unique Tax Roll (RUT) for the company.

Puedes ver todos los tipos de sociedades explicadas detalladamente en nuestro blog:
https://iberocapital.cl/legal/tipos-de-empresas-en-chile/

Process of Incorporating a Business in Chile if You’re Canadian

Below, we explain step by step how to incorporate your company in Chile from Canada:

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 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 Canada, you need a legal representative in Chile who can complete the necessary procedures. This representative must be a resident of the country, either Chilean or a foreigner with permanent residency.

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.

Defining the Basic Aspects of the Company's Operations

Defining the basic aspects of your Canadian company in Chile is crucial to ensure that your business is well-structured and complies with local regulations. 

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.

Obtaining a Foreign Investor RUT from Canada

Si no eres nacional de Chile o residente permanente en Chile, necesitarás tramitar un RUT de Inversionista Extranjero to legally operate in Chile from Canada.

To do this, you must have an agent, representative, or attorney, who will be the person authorized to process the Foreign Investor RUT with the SII in Chile. Additionally, this person may be the one who signs the incorporation of your company, as you will not be able to sign it while in Canada.

If the power of attorney is granted outside of Chile, that is, from Canada, it must be apostilled or signed before a Chilean Consulate in Canada and then legalized by the Ministry of Foreign Affairs in Chile.

In summary, if you are in Canada and wish to obtain a Foreign Investor RUT and incorporate a company in Chile from Canada, 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 before a Public Faith Official in Canada, usually a Chilean consul.

As Canada has recently been included in the Hague Convention, I will start by explaining the apostille process:

Apostille Process for a Document in Canada

Since January 11, 2024, Canada is part of the Hague Apostille Convention, which greatly simplifies the use of Canadian documents in Chile. From this date, notarial powers and other public documents issued in Canada can be apostilled to be valid in Chile and in the more than 120 signatory countries of the convention. Here, I explain in detail how the process works and what aspects you should consider.

Changes in Authentication and Apostille in Canada

Until January 10, 2024, the Authentication Services Section of Global Affairs Canada was solely responsible for document authentication across the country. However, with The Hague Apostille Convention's implementation in Canada, some provinces now have the authority to issue apostilles directly. This depends on where the document was issued or notarized:

• Asuntos Globales Canadá seguirá autenticando y emitiendo apostillas para documentos federales emitidos por el Gobierno de Canadá, así como para aquellos notariados en las siguientes provincias y territorios:
  • Manitoba
  • Nuevo Brunswick
  • Terranova y Labrador
  • Territorios del Noroeste
  • Nueva Escocia
  • Nunavut
  • Isla del Príncipe Eduardo
  • Yukón
• The provinces of Alberta, British Columbia, Ontario, Quebec, and Saskatchewan are now responsible for issuing apostilles for documents issued or notarized within their jurisdictions. It’s important to know that if your document was notarized in one of these provinces, you must send it to the competent provincial authority for the apostille issuance.

Steps to Obtain an Apostille in Canada

1. Document Preparation

Ensure that the notarial power is correctly drafted and notarized in the corresponding province. Depending on the province where you are located or where the document was issued, the process may vary:

• If you are in one of the provinces where Global Affairs Canada still handles authentication (as mentioned above), you must send your document to their office in Ottawa.
• If you are in one of the provinces that have their own competent authorities (such as Alberta or Quebec), you must send it directly to the relevant provincial office.

2. Document Notarization

Before proceeding with the apostille, it is essential that a public notary in Canada authenticate the power of attorney. The notary will verify your identity and confirm the authenticity of your signature. Depending on the jurisdiction, some provinces only authenticate documents notarized locally.

3. Apostille Request

• Global Affairs Canada: If your document is sent to Global Affairs, you can submit it in person, by mail, or, if you are abroad, through a Canadian embassy, high commission, or consulate that offers these services.
• Provincial Offices: If your document must be apostilled by a provincial authority, check the specific requirements and processes for each. For example, in Alberta, you must send it to the Alberta Ministry of Justice, and in Ontario, to the Ministry of Government and Consumer Services.

4. Payment of Fees

The fees for issuing apostilles may vary depending on the authority. Global Affairs Canada and the provincial offices accept payments by credit card, cheque, or money order. It is recommended to consult the official authority’s website for current fees.

5. Verification and Return of the Apostilled Document

Once processed, you will receive the document with the apostille attached. It is important that you include clear instructions for the return of the document when you send your request, either by a prepaid envelope or a prepaid courier service. This speeds up the return process.

Withdrawal or Change of Documents Already Sent

If you sent a document for authentication to Global Affairs Canada before January 11, 2024, and you wish to withdraw it to present it to a provincial authority, you can do so by sending an email to the Authentication Services Section. Be sure to include all necessary information (name, date of submission, tracking code, etc.) for proper processing.

Verification of Apostilles Issued

To verify the validity of an apostille issued in Canada, send an email to apostille@international.gc.ca with the certificate number and issuance date. If the certificate was issued in a specific province, such as Ontario or Quebec, the provincial authorities offer online tools for verification.

Legalization Process of a Canadian Document at a Chilean Consulate

If you choose to proceed with signing the power of attorney at a Chilean consulate in Canada, you must contact the consulate for document submission and verification.

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

It is essential to verify whether the consulate has an Official Public Faith Officer, so we will list the Chilean consulates in Canada, 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 OTTAWA

CLAUDIA ANDREA ARAVENA NEIRA

First Secretary – Consul

(Since January 31, 2022)

GENERAL CONSULATE IN MONTREAL

FELIPE ORELLANA MARTÍNEZ

First Secretary – Consul General

(Since September 23, 2020)

Authorized consular staff as Public Notary

Francisco Cionti Bas

(Since March 15, 1995)

HONORARY CONSULATE IN HALIFAX (UNDER MONTREAL C.G.)

Honorary Consul without Authority to Act as Public Notary

MARCOS ZENTILLI VAN KILSDONK

Honorary Consul 

(Desde 30 de diciembre de 2009)

GENERAL CONSULATE IN TORONTO

FERNANDO ANDRÉS MORALES GODOY

First Secretary-Consul General

(Since October 1, 2022)

Authorized consular staff as Public Notary

Carmen Gloria Vega Lobos

(Since June 29, 2017) 

GENERAL CONSULATE IN VANCOUVER

ALLAN DAVID NAJUM LITMAN

Counselor-Consul General

(Since August 1, 2022)

Authorized consular staff as Public Notary

Víctor Bustamante Alarcón

(Since November 1, 2020)

HONORARY CONSULATE IN VICTORIA (UNDER VANCOUVER C.G.)

Honorary Consul without Authority to Act as Public Notary

LEOPOLDO ERIC BUSTOS AREVÁLO

Honorary Consul

(Since July 14, 2021)

HONORARY CONSULATE IN CALGARY (UNDER VANCOUVER C.G.)

Honorary Consul without Authority to Act as Public Notary 

DIEGO SOTO SILVA

Honorary Consul

(Since July 30, 2013)

Once you have selected the Chilean consulate in Canada where you will sign the power of attorney, you must contact the appropriate consulate directly according to the jurisdiction. Keep in mind that the consulate must have staff authorized to act as an Official Public Faith Officer (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.

After the document is legalized by the Ministry of Foreign Affairs in Chile, along with your identity documents, it must be submitted to the SII through their 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.

Choosing the Type of Company to Incorporate in Chile from Canada

To choose the type of company to incorporate in Chile from Canada, it's important to understand the most common options and which one best fits your needs and business goals. 

In Chile, there are several types of companies, but the most recommended for foreign entrepreneurs are the Stock Corporation (SpA) and the Limited Liability Company (SRL).

Company by Shares (SpA)

La SpA es una de las estructuras más flexibles y populares entre los inversionistas extranjeros canadienses, ya que permite constituir la empresa con un solo accionista y otorga la posibilidad de aumentar o disminuir el capital social fácilmente.

Additionally, SpAs can issue shares, which makes it easier to bring in new partners or investors in the future. Some advantages of the SpA include:

• Ease of Incorporating Foreign Investment: Since it allows for the issuance of shares, it becomes simple to attract international investors interested in acquiring a stake in the company.
• Facilidad para incorporar inversión extranjera: Dado que permite la emisión de acciones, se vuelve sencillo atraer a inversionistas internacionales interesados en adquirir participación en la empresa.
• Simplified Decision-Making: Unlike other types of companies, the SpA does not require unanimous consent from partners for all decisions, which allows for more agile management, especially if you are operating from Canada and are not physically present in Chile to make quick decisions.

Limited Liability Company (LLC)

La SRL es otra opción viable, especialmente si prefieres una estructura más tradicional o si deseas tener un socio desde el inicio. La SRL se caracteriza por tener entre 2 y 50 socios, quienes responden de manera limitada según el capital que hayan aportado. Es ideal para pequeñas y medianas empresas que buscan una estructura simple pero con más estabilidad en su organización.

• Protection of Personal Assets: Like the SpA, the SRL limits partners' liability to their capital contributions, protecting the personal assets of investors.
• Protección de bienes personales: Al igual que la SpA, la SRL limita la responsabilidad de los socios al capital aportado, lo que protege el patrimonio personal de los inversionistas.

Which is the Best Option for You as a Canadian?

If you are considering expanding or starting operations in Chile from Canada, the SpA is usually the most recommended option due to its flexibility and ease of incorporating investors and managing the company remotely. Additionally, the possibility of starting with a single shareholder simplifies the initial process, allowing you to proceed on your own or through a representative in Chile.

On the other hand, if you already have a partner or plan to structure the business with several co-founders, the SRL (LLC) could be a good alternative to ensure shared control and a collaborative management approach.

Once you have decided on the type of company, the next step will be to draft the corporate bylaws and incorporate your business through the Company in a Day System or the Commercial Registry, depending on your preference and the legal advice you receive.

If you want to learn about all the types of companies available in Chile, we at Iberocapital have developed an article explaining them in detail:
https://iberocapital.cl/en/legal/types-of-companies-in-chile/

Appoint a Legal Representative

Appointing a Legal Representative is a crucial step in the process of incorporating a company in Chile, especially if you are setting up the company from Canada and will not be physically present to manage all the procedures.

The Legal Representative is the person who will act on behalf of the company in Chile, signing documents, fulfilling tax and legal obligations, and making decisions on behalf of the business. This representative can be a Chilean or a foreigner residing in Chile with the proper documentation.

Duties of the Legal Representative

The Legal Representative has several responsibilities, including:

1. Handling Legal Procedures: The representative will be in charge of registering the company with the Commercial Registry or formalizing it through the “Company in a Day” system and obtaining the company’s Unique Tax Roll (RUT) from the Internal Revenue Service (SII).
2. Representation Before Tax Authorities: They will be responsible for managing the company’s tax obligations, such as filing tax returns and complying with any other applicable tax regulations.
3. Signing Contracts and Agreements: The Legal Representative is authorized to sign contracts and agreements on behalf of the company, whether with suppliers, clients, or other stakeholders. This is particularly important if you need to conduct commercial activities or enter into agreements from abroad.
4. Representation Before Courts and Other Entities: In case of a legal dispute or the need to appear before a government entity, the Legal Representative will act on behalf of the company.

Requirements to be a Legal Representative

To appoint a Legal Representative, the chosen person must meet certain legal requirements in Chile:

• Legal Capacity: They must be of legal age and have the legal capacity to act on behalf of the company, which means they cannot be disqualified from managing or representing businesses.
• Capacidad legal: Debe ser mayor de edad y tener la capacidad legal para actuar en nombre de la sociedad, lo que implica no estar inhabilitado para ejercer funciones de administración o representación de empresas.
• Availability to Manage the Company: Since the representative will be the legal face of the company in Chile, it is important that they are available to fulfill their duties, as their signature and presence may be required in various procedures.

How to Appoint a Legal Representative if You Are in Canada

If you are in Canada and need to appoint a Legal Representative in Chile, you must follow these steps:

1. Grant a Notarial Power of Attorney: This document will give the selected person the authority to act as your representative. You must draft the power of attorney in Canada, specifying the powers the representative will have in Chile. This document must be apostilled (following the Hague Convention process) or legalized at a Chilean Consulate in Canada.
2. Sending and Legalizing the Power of Attorney in Chile: Once apostilled or legalized, the document must be sent to Chile, where it will be legalized by the Ministry of Foreign Affairs. Subsequently, the notarial power will be presented to the SII so that the representative can manage the company’s RUT and carry out the incorporation procedures.
3. Assigning Specific Powers in the Bylaws: In the corporate bylaws, it is necessary to detail the powers of the Legal Representative, which may be general or specific, depending on your preference. This includes everything from the authority to sign contracts and represent the company before authorities to the power to open bank accounts and manage the company’s capital.

Considerations When Choosing a Legal Representative

It is crucial to select a trustworthy person with experience in business and legal management in Chile.

Many foreign entrepreneurs choose to hire a lawyer or a local consulting firm that can act as a representative, ensuring that all processes comply with Chilean regulations. This not only facilitates the company’s incorporation but also ensures continuous compliance with legal and tax obligations. 

When choosing your Legal Representative, make sure they fully understand the scope of their responsibilities and are willing to act on behalf of the company, representing your interests professionally and efficiently.

Al elegir a tu Representante Legal, asegúrate de que comprenda completamente el alcance de sus responsabilidades y que esté dispuesto a actuar en nombre de la empresa, representando tus intereses de manera profesional y eficiente.

At Iberocapital, we offer a legal representative service for a fee of 300 CAD per month. You can find more information at this link: https://iberocapital.cl/comprar/servicio-de-representante-legal/

Choosing an Option to Set Up Your Business in Chile from Canada

When you decide to establish a business in Chile from Canada, you have two main options: the traditional route through a public deed or the fast track via the “Company in a Day” portal.

Each has its own advantages and disadvantages, so it’s important to evaluate which one best suits your needs and resources.

1. Traditional Route: Public Deed

This is the most detailed and customizable way to create a business in Chile. By opting for the traditional route, you create a public deed before a notary, detailing all the specific aspects and requirements of your business, tailoring them to your business’s particularities. Here’s what it entails:

• Complete Customization: By creating your business through a public deed, you have the opportunity to specifically define how your company will operate. This is especially useful if your business has particularities that cannot easily be adapted to the standard forms of the virtual portal.
• Long-term Benefits: Having the flexibility to tailor the deed according to your business needs allows you to structure the company to fit your long-term vision, including specific clauses on management, the entry of new partners or investors, and internal policies.
• Costs and Time: However, this process can be longer and more expensive compared to the fast track, as it involves notary fees and the time needed to prepare and review the deed. Additionally, the duration will depend on the type of company you choose to set up, such as the SpA or SRL, and the complexity of the bylaws you decide to incorporate.

2. Fast Track: Company in a Day

The second option is to use the “Company in a Day” system, an online platform designed to simplify and speed up the process of incorporating businesses in Chile. This method is ideal if you prefer a faster and more economical approach, especially if you are managing the process from Canada.

• 100% Virtual: The entire process is completed online, so you won’t need to be physically present in Chile. You will only need an Advanced Electronic Signature (FEA) to complete the procedure, or you can authorize a representative in Chile who has one to manage the incorporation on your behalf.
• No Cost: One of the main advantages of this option is that it is free, which can be a significant benefit if you are looking to minimize initial expenses when setting up your business. Moreover, by not requiring notaries, the process becomes more accessible and faster.
• Speed and Simplicity: As the name suggests, the system allows you to create your business in one day, as long as all requirements are met and the documentation is in order. This is ideal for those who want to start operating in Chile as soon as possible.

Which Option is Best for You?

If you seek customization and have the time and resources to dedicate to the process, the traditional route might be the ideal option, as it allows you to adjust every detail of your business according to your specific needs and long-term objectives.

On the other hand, if you prefer a quick, economical process and are willing to manage some aspects on your own or with a representative in Chile, the Company in a Day option is an excellent alternative to get started quickly.

Regardless of the option you choose, at Iberocapital, we are here to support you every step of the way, ensuring that your business in Chile is incorporated effectively and with all the necessary legal guarantees.

Defining the Basic Aspects of the Canadian Company in Chile

Whether you choose the traditional route through a public deed or the fast track via the Company in a Day system, it is essential to be clear on several key aspects when drafting the company’s bylaws. Let’s go step by step:

Step 1: Entering Company Data

Company Name

You must choose a name that clearly identifies your company and is not already registered in Chile. This name will be the official denomination of your company and will appear in all legal documents.

Trade Name

This is the commercial name or brand under which your company will operate. It can be different from the company’s legal name and will be used to identify the business to clients and suppliers.

Tax Address

This refers to the address where the company will be registered with the Internal Revenue Service (SII). This address will be used for tax purposes, so it’s important that it is a physical location in Chile where notifications can be received. You can hire our Virtual Office service.

Corporate Address

This is the company's main place of operation and the location where administrative and commercial activities will be carried out. It can be the same as the tax address, but it must be clearly specified in the bylaws.

Corporate Purpose

This is defined as the company’s main activity. It’s important to be specific but broad enough to cover all the potential activities the company may engage in in the future. For example, for a tech business, you could include “software development, provision of technological services, IT consulting, and commercialization of digital products.”

Capital

This refers to the initial amount with which the company is incorporated. This capital can be contributed in cash or goods and must be clearly specified in the bylaws. Additionally, the structure and administration of this capital must be defined.

Number of Shares, Nominal Value, and Series of Shares

If you decide to incorporate an SpA, you must specify how many shares will be issued, the nominal value of each share, and whether there will be different series of shares, which can have different rights or privileges.

Duración de la sociedad

Here you define whether the company will have an indefinite duration or a specific term. In many cases, an indefinite duration is chosen to avoid future amendments to the bylaws.

Management Powers

The responsibilities and powers of the company’s administrators are specified here. This includes whether there will be a board of directors, a general manager, or another type of administrative structure, and what powers they will have to represent and manage the company.

Communication Methods Among Shareholders

It is necessary to establish how administrators, partners, or shareholders will communicate with each other and with the company. This can include emails, face-to-face or virtual meetings, and any other agreed-upon methods.

Frequency of Shareholders' Meetings (if an SpA)

In the case of an SpA, it is important to define how often shareholders will meet to make important decisions about the company. This can be annually or with another frequency as deemed appropriate.

Dispute Resolution

It is advisable to include a mechanism for resolving conflicts that may arise among partners or shareholders, such as mediation, arbitration, or the jurisdiction of a specific court in Chile.

Distribution of Profits

The bylaws must clearly establish how profits will be distributed among the partners or shareholders. This can be in proportion to each one’s participation, or under another previously agreed scheme.

Step 2: Entering Shareholder Information

Shareholders and Management

It is essential to detail who the shareholders of the company will be, specifying their personal information such as full name, identification number (if foreign, their Investor RUT), and their percentage of participation in the company. Additionally, it is important to define who will be part of the management, whether a general manager, a board of directors, or another figure, and outline their functions and responsibilities.

Step 3: Signing the Bylaws

Once all the above aspects have been defined, the bylaws of the company are ready to be signed. This can be done in two ways:

Advanced Electronic Signature (FEA)

If you are using the Company in a Day system, you will need the FEA to digitally validate the documents. You can use yours if you have one or authorize a representative in Chile with an FEA to sign on your behalf.

Signature Before a Public Notary

In the traditional route, the bylaws must be signed before a notary in Chile. If you are in Canada, you must grant a notarial power of attorney to a representative in Chile so they can sign on your behalf, ensuring that the power of attorney is correctly apostilled or legalized.

These steps are essential to ensure that your company in Chile is properly incorporated and complies with all current regulations, allowing you to operate legally and with all guarantees.

Costs of Incorporating a Company in Chile from Canada

Setting up a company in Chile from Canada involves various costs depending on the type of company and the legal services required. Below are some of the most common costs involved in the incorporation 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 costo de 300 CAD per month. This ensures that the company meets legal requirements and has an authorized representative to operate in Chile.

En resumen, si cuentas con algún chileno, que pueda asumir el rol de Representante Legal, este procedimiento te saldrá sin costo, de lo contrario, puedes contratar nuestro servicio de representante legal por 300 CAD al mes.

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.

You can also hire the RUT procurement service with Iberocapital to handle this process for you. This service costs 200 CAD and includes the drafting of the power of attorney, managing the signature at the Chilean consulate, legalization in Chile, and the RUT application at 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 need to pay a fee of 50 CAD for the protocolization service, as it is recommended to have the document protocolized by a notary in Chile.

In conclusion, handling the process yourself will not incur any additional costs. However, if you want to hire a specialized law firm and save time, the total cost is 200 CAD plus consulate fees, shipping costs to Chile, and notary fees in Chile—a one-time payment.

Establishing a Corporate Address to Create a Company in Chile from Canada

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 costs 150 CAD annually, while the Virtual Warehouse service also costs 150 CAD.

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 you use the traditional system, the notary fees for signing the deed can vary, while in the Company in a Day system, you can use an advanced electronic signature, which also has a cost if you do not already have one. If you need to sign before a notary, the cost is around 30 CAD.

Inscripción en el Registro de Comercio: En el sistema tradicional, la inscripción de la empresa en el Registro de Comercio y la publicación en el Diario Oficial tienen un costo adicional que puede oscilar entre 150 y 500 CAD, dependiendo de la extensión de los documentos. Si la constitución se hace bajo el sistema de empresa en un día, no se incurre en este costo.

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 different law firms charge varying amounts for this procedure, which is carried out once the company is published in the Official Gazette. This service typically costs around 30 CAD.

En Iberocapital contamos con diferentes planes de constitución de sociedades, que incluyen diferentes trámites, si quieres que tu empresa quede funcionando puedes contratar nuestro plan completo de constitución de sociedades por un costo de 200 CAD al mes.

Municipal Business License Processing

We offer a comprehensive service for processing the municipal business license with the Municipality of Santiago Downtown for a cost of 50 CAD. 

This service includes the full drafting of all necessary documentation and its submission to the Municipality of Santiago. Once your company’s business license has been successfully processed, you will need to pay an annual fee of 150 CAD to the municipality.

Conclusions

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

Servicios de un solo pago: 450 CAD.

Servicios recurrentes: 395 CAD.

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 comprehensive corporate rental services starting at 300 CAD.

Lastly, remember that at Iberocapital, in addition to guiding you on how to set up a business in Chile from Canada, we offer a complete service that includes advice throughout the entire incorporation process, helping you optimize time and resources.

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