Types of Companies in Chile

In Chile, there are several types of companies that can be established, each with distinct characteristics that cater to different business needs. In this entry, we will teach you about the types of companies in Chile.

Next, the main types of companies are mentioned, and it is explained why the Company by Shares (SpA) can be an attractive option:

Individual Limited Liability Company (EIRL):

It is a type of company in Chile that you can create, but it has a legal personality separate from yours. That means your company has “a life of its own”!

Liability is limited to the company's assets, which means that if things go wrong, your personal assets are protected. No losing the house over a business!

Why incorporate an E.I.R.L.?

Because it allows you to separate the company's assets from yours. In addition, liability is limited to the amount of the contribution you made as the owner. This way, you can sleep more soundly.

The company has economic life and is responsible for its own acts, as long as they are within its business purpose. It is like having a mini empire that works on its own!

In which cases is the owner of an E.I.R.L. liable without limitation?

However, not everything is rosy. You will be liable without limitation if:

• You perform acts and contracts outside the company’s purpose.
• You enter into contracts without mentioning the company name.
• You engage in simulated acts or hide assets.
• You receive income unrelated to the line of business or make improper withdrawals.
• You are convicted of insolvency crimes.

How many partners can an E.I.R.L. have?

None, there is only one owner: you. There are no partners, only one holder.

What must the articles of association of an E.I.R.L. contain?

According to Law N°19.857, the bylaws must contain:

• Your name and details.
• The company name.
• The corporate purpose or line of business.
• The capital.
• The company’s domicile.
• The company’s duration.

How should I complete the company name of an E.I.R.L.?

El nombre de la empresa debe incluir tu nombre completo, la actividad económica, y terminar con «Empresa Individual de Responsabilidad Limitada» o «E.I.R.L.». ¡Además, puedes agregar un nombre de fantasía si quieres!

Examples:

• AGRÍCOLA JUAN EDUARDO PÉREZ GONZÁLEZ EMPRESA INDIVIDUAL DE RESPONSABILIDAD LIMITADA.
• SERVICIOS DE ENCARGO Y ENCOMIENDAS JUAN EDUARDO PÉREZ GONZÁLEZ E.I.R.L.

Can an E.I.R.L. have more than one purpose or line of business?

No, the E.I.R.L. has a single line of business, so you must clearly define what activity it will carry out (example: commercial, industrial, agricultural, etc.).

Can a third party be the legal representative before the SII of an E.I.R.L.?

No, the legal representative and administrator must be you, unless you are a foreigner without permanent visa; in that case, it may be a Chilean or a foreigner with permanent residence.

What does the capital of the E.I.R.L. consist of?

The capital is the contribution you make to the company, and it must be clearly specified in the bylaws.

What can I contribute to the E.I.R.L.?

You can contribute real estate, movable property, and even money. Everything counts!

Who administers the E.I.R.L.?

You are the administrator, although you can appoint a third party through a public mandate.

What is the company's duration?

You decide the duration. It can be indefinite or with a deadline, as you prefer.

Can I have two or more E.I.R.L.?

Yes! You can have several E.I.R.L., as long as they do not have the same line of business.

How are the E.I.R.L. bylaws amended?

You must complete the process at www.RegistroDeEmpresasySociedades.cl, enter the changes and sign electronically. It's that simple.

Can I sell an E.I.R.L.?

Yes, you can sell it by making a modification in the Registro de Empresas y Sociedades, following some simple steps and signing electronically.

Can I sell my social rights in my E.I.R.L. to my spouse?

No, the law does not allow the transfer of rights between spouses. So, in this case, the answer is a resounding no.

How can I correct my E.I.R.L.?

You can submit a rectification request at www.RegistroDeEmpresasySociedades.cl, explain the error, correct it, and sign electronically. Then, it will be reviewed by the legal department.

Can I transform my E.I.R.L. into another type of company?

Of course. You can transform it into a Sociedad de Responsabilidad Limitada, Sociedad Anónima or Sociedad por Acciones, meeting certain requirements.

What are the grounds for termination of an E.I.R.L.?

Puedes terminarla por voluntad propia, porque llegó al plazo acordado, porque aportaste su capital a otra sociedad, por liquidación o por fallecimiento. En el caso de fallecimiento, los herederos pueden designar un gerente común por un año.

How can I dissolve my E.I.R.L.?

You must request the termination of activities before the SII and then carry out the dissolution in www.RegistroDeEmpresasySociedades.cl, signing electronically.

Limited Liability Company (SRL):

The Limited Liability Company (SRL) in Chile is a legal form of business characterized by having a minimum of two and a maximum of fifty partners. 

The partners' liability is limited to the amount of capital they have contributed, which means they will not be personally liable for the company's debts beyond their investment. 

Esta estructura tiene ciertas restricciones en cuanto a la entrada de nuevos socios, lo cual limita su flexibilidad comparada con otras formas societarias, pero ofrece un marco seguro para proteger el patrimonio personal de los inversionistas.

What is a Limited Liability Company?

A Limited Liability Company is a business you can form with a minimum of two and a maximum of fifty partners. 

The great thing is that liability is limited to the amount each one contributed as capital. The partners can be both natural persons and legal entities.

Why form a Limited Liability Company?

The main advantage is that the partners are only liable up to the amount of their contributions, and you do not need a minimum capital to form it. 

In addition, its administration is simple because, as a general rule, the same partners take care of everything. It is ideal for those who know each other well and trust each other.

What must the bylaws of a Limited Liability Company contain?

According to Law No. 3,918, the bylaws must include, at a minimum:

• The identification of the partners.
• The company name, which must include the business line or the surnames of at least one of the partners, ending with the word «Limitada».
• The type of corporate management.
• The corporate purposes or business activities.
• The capital.
• The duration of the company.
• The liquidation and distribution of company assets.
• Arbitration.
• The company's registered address.

How should I indicate the company name of a Limited Liability Company?

La razón social es el nombre que distingue a la empresa. Debe incluir el nombre o apellidos de al menos uno de los socios, o una referencia al objeto de la sociedad, más la palabra «Limitada». Además, la referencia al rubro debe estar en español.

Correct examples:

• González y Pérez Limitada
• Constructora G y P Limitada
• González y Compañía Limitada
• Constructora González y Pérez Limitada

Incorrect examples:

• G y P Limitada (does not refer to the industry or the partners).
• Constru G y P Limitada (does not refer to the industry).
• Compañía Limitada (does not refer to the industry or the partners).
• Building González y Pérez Limitada (the reference to the industry is in English).

Can a Limited Liability Company have more than one purpose or line of business?

Yes, it can have several commercial or civil lines of business, as the partners agree. More flexibility to explore different businesses!

What does the capital of a Limited Liability Company consist of?

The capital is the sum of all contributions made by the partners at the time of creating the company or during its existence. It must be detailed and specify the participation percentage of each partner.

What contributions can be made to a Limited Liability Company?

Partners can contribute all types of assets: movable, immovable, money, rights, shares of other companies, and even industry and work.

Who manages the Limited Liability Company?

Por lo general, la administración está en manos de los socios, quienes actúan de común acuerdo. La administración puede ser ejercida por uno o más socios, o bien por terceros designados por los socios.

What are the grounds for termination of a Limited Liability Company?

It can end for different reasons, such as:

• The death of a partner.
• The expiration of the term established when creating the company.
• Other reasons defined in the bylaws, such as the end of the business or the extinction of the company's assets.

How are the bylaws of a Limited Liability Company modified?

You must complete the process through www.RegistroDeEmpresasySociedades.cl and enter the changes. Then, all partners must sign electronically.

How can I add new partners to a Limited Liability Company?

Para agregar nuevos socios, se puede realizar una cesión de derechos o un aumento de capital. En cualquier caso, se necesita el consentimiento de todos los socios actuales y modificar los estatutos en el mismo sitio web.

Can a Limited Liability Company be sold?

Yes, the partners' rights can be assigned through a rights assignment that is added to the form on the website.

Can I sell my share of the company to my spouse or civil partner?

No, the assignment of rights between spouses or civil partners is not allowed by law.

What should I do in case of the death of one of the partners?

• It will depend on what was stipulated in the bylaws:
  • If it was established that the company ends, its dissolution proceeds.
  • If it continues with the heirs, they must obtain the Posesión Efectiva and appoint an administrator.

Can I resign from the management of my Limited Liability Company without the consent of the other partners?

• It depends on the case:
  • If you were appointed administrator in the constitutive act, you can only resign for the stipulated causes or with the consent of all partners.
  • If the administrator was appointed later, they may resign following the rules of the mandate.
  • If it is an external third party, the resignation must be made by public deed and registered.

How can I rectify my Limited Liability Company?

You must submit the request through the website, specifying the errors and their corrections. All partners must sign electronically.

Can a de facto partnership be transformed into a Limited Liability Company?

No, a de facto partnership does not have legal personality, so it must be formally incorporated as a Limited Liability Company.

How can I transform my Limited Liability Company into another type of company?

You can transform it into an E.I.R.L., S.A. or SpA, meeting the relevant legal requirements.

How can I dissolve my Limited Liability Company?

First, you must declare the Término de Giro before the SII, and then carry out the dissolution on the website, entering the data and signing electronically.

Corporation (SA):

La Sociedad Anónima (SA) en Chile es una forma de organización empresarial que está orientada principalmente a grandes proyectos, ya que permite la participación de un número ilimitado de accionistas. 

En este tipo de sociedad, el capital se divide en acciones que pueden ser libremente transferidas, lo cual la hace ideal para la atracción de inversionistas y la apertura a nuevos socios. La responsabilidad de los accionistas se limita al valor de sus acciones, protegiendo así su patrimonio personal. 

Las SA pueden ser abiertas, si sus acciones cotizan en la bolsa y están sujetas a la fiscalización de la Comisión para el Mercado Financiero (CMF), o cerradas si no cotizan en el mercado público, lo cual les otorga cierta flexibilidad en su administración.

What is a Closely Held Corporation?

Una Sociedad Anónima Cerrada (SA Cerrada) es básicamente un club donde dos o más personas —que pueden ser personas naturales o empresas— se juntan para formar una sociedad. Aquí, cada socio tiene acciones que representan su participación en la empresa y todo el show lo maneja un directorio, que vendría siendo como el «consejo de sabios» encargado de tomar decisiones importantes. ¿Fácil, no?

And if you have heard about the Sociedades Anónimas de Garantía Recíproca (SAGR), they are a special type of company that basically provides beneficiaries with guarantees for their debts. 

Como siempre, con el propósito de ayudarlos a cumplir sus objetivos empresariales. Además, necesitan el visto bueno de la Superintendencia de Bancos e Instituciones Financieras para operar. Todo muy formal, pero con buena intención.

Why choose a S.A. as your company?

Are you wondering why it would be convenient to set up a S.A.? Simple: the key is that shares can be sold to new partners without having to ask the others for permission. That is how free it is. 

Además, la administración está regulada por ley, así que te ofrece un buen nivel de seguridad para saber qué esperar y cómo gestionar las cosas. Todo eso hace que una S.A. sea una opción interesante para muchos emprendedores.

What must the bylaws of a S.A. contain?

The bylaws of a S.A. are like the "rules of the game". According to Law No. 18,046, there are certain things that cannot be missing from them, such as:

• Who the shareholders are (name, profession, address, RUT, etc.).
• The company name, which must always end with "Sociedad Anónima" or the abbreviation "S.A.".
• The company's address and its line of business (that is, what it will do).
• The company's duration, initial capital, number of shares, how contributions will be paid, and much more.

For S.A.G.R., they must also mention things such as the minimum share capital (10,000 UF, no less) and details of how the guarantees will operate.

Can I divide the capital into a non-integer number of shares?

No. There are no half measures here. Shares are indivisible, so the capital must be divided into an integer number of shares. Fractions are not allowed, no "half shares" here!

What can I contribute to a S.A.?

In general, you can contribute money (the classic option). But you could also contribute assets, such as properties or rights from another company. 

Eso sí, nada de aportar «trabajo» como capital, porque eso va contra la naturaleza de una S.A. Ah, y si luego quieres hacer un aumento de capital aportando algo que no sea dinero, tienes que tener la aprobación de la Junta Extraordinaria de Accionistas y acompañar el aporte con un informe de peritos que valore ese bien.

How should I complete the corporate name of a S.A.?

Time to name your company! The corporate name is the official name your S.A. will have. The only rule is that it must end with "Sociedad Anónima" or simply "S.A.". 

So you can be as creative as you want. For example: "Tecnologías Futuras S.A." or "Sabores del Mundo Sociedad Anónima". The sky is the limit!

How is capital stated in a S.A.?

The capital of your S.A. must be clearly stated in the bylaws. You must specify how much the capital is and into how many shares it is divided. 

In addition, each share has to be in the name of a natural or legal person. So no mysteries here, everything well detailed.

Are there different types of shares in S.A.?

Of course. In a S.A. you can have two types of shares: ordinary and preferred. Each with its own characteristics and benefits.

What do ordinary and preferred shares in a S.A. consist of?

The ordinary shares are like the daily bread: all the same, with no differences between them. They grant all political, economic, and information rights. By contrast, the preferred shares son como el asiento de primera clase. Tienen ventajas especiales que se estipulan en los estatutos, como preferencias en el pago de dividendos. Pero ojo, estas ventajas no son eternas; deben tener un plazo de duración porque no son perpetuas.

What is the Shareholders' Meeting?

The Shareholders' Meeting is like the main assembly where all partners meet to make important decisions. There are two types:

• Ordinary: They are held once a year to review matters such as financial statements, election of directors, among others.
• Extraordinary: They can be called at any time to address urgent or special matters, such as amending the bylaws, merging with another company, or dissolving the company.

It is the key instance where you, as a shareholder, can give your opinion and vote on the company's future.

What does the administration of the S.A. consist of?

The administration of an S.A. is in charge of a board elegido por la Junta de Accionistas. Este directorio es como el cerebro de la empresa: toma decisiones, representa a la sociedad y vela por sus intereses. Para una S.A. Cerrada, debe tener al menos 3 directores y su mandato puede durar hasta 3 años. Además, aunque pueden delegar ciertas tareas en gerentes o apoderados, las decisiones importantes las toman ellos de forma colectiva.

What are the incompatibilities of the Directors, Manager, and Auditor?

¡Ojo con esto! Según la ley, el cargo de gerente es incompatible con ser presidente, auditor o contador de la misma empresa. Es decir, no puedes ser juez y parte al mismo tiempo. Esto es para asegurar transparencia y evitar conflictos de interés.

Who are disqualified or incapable of holding the position of Director and Manager?

Not everyone can be directors or managers. They are disqualified:

• Minors.
• People who have been removed as directors due to rejection of balance sheets.
• Debtors in liquidation proceedings.
• Convicted of crimes with afflictive penalties (more than 3 years in prison).
• Disqualified from public office.
• Officials of certain supervised public companies.

Also, according to the Civil Code, they are incapable:

• People with dementia.
• Adult minors (over 14 but under 18).
• Deaf or deaf-mute people who cannot communicate clearly.
• People declared interdicted (incapable of managing their assets).

What is the duration of an S.A.?

La duración de tu S.A. es la que tú y tus socios decidan al momento de crearla. Puede ser por un plazo fijo o indefinido. Si no especifican nada, se entiende que es indefinida. ¡Así que puede durar tanto como ustedes quieran!

What are the grounds for termination of an S.A.?

An S.A. may come to an end for various reasons:

• Expiration of the term established.
• All shares meeting in the hands of a single person for more than 10 days.
• Agreement of the Extraordinary Shareholders' Meeting.
• Final court judgment.
• Revocation of the authorization of existence, in special cases.
• Other grounds that have been contemplated in the bylaws.

How are the bylaws of an S.A. amended?

If you want to change the “rules of the game,” you must:

1. Call an Extraordinary Shareholders’ Meeting to discuss and approve the amendments.
2. Convert the minutes into a public deed before a notary.
3. File the Shareholders’ Certificate of Good Standing.

Then, you make the amendment in the Registry of Companies and Societies, attach the documents, and you’re done. Remember that everyone must agree!

Is it necessary for all shareholders of an S.A. to sign the amendment form?

Generally, yes. All shareholders who participated in the meeting must sign. But you can also appoint a attorney-in-fact at the meeting to sign on behalf of everyone. This makes the process easier and you don’t have to coordinate everyone.

How can I add new shareholders to an S.A.?

You can do it in two ways:

1. Sale of shares: You sell your shares to another person through a private contract signed before a notary, witnesses, or a stockbroker. Then, you can register this sale if you wish.
2. Capital increase: You issue new shares and sell them to the new shareholder, increasing the share capital. This requires an amendment to the bylaws.

Important! You cannot sell your shares to your spouse or civil partner. The law prohibits it.

Can I sell my shares to my spouse or civil partner?

No, the law does not allow the purchase and sale of shares between spouses or civil partners. You will have to find another way to share the business.

How can I remedy my S.A.?

If your S.A. has a legal error or «formal defect», you must:

1. Hold an Extraordinary Shareholders' Meeting to correct the errors.
2. Convert the minutes into a public deed.
3. File the Shareholders’ Certificate of Good Standing.
4. Carry out the rectification procedure in the Companies and Partnerships Registry, indicating what you want to correct and attaching the documents.

Thus, your S.A. will be compliant again.

How can I rectify my S.A.?

To correct minor errors:

1. Complete the rectification form in the Companies and Partnerships Registry, indicating the changes.
2. Sign electronically the request.
3. The Registry will review and accept the rectification if everything is in order.

How can I transform my Closed Corporation into another legal form (LTDA., SpA, E.I.R.L.)?

If you decide that another type of company suits you better:

1. Call an Extraordinary Shareholders' Meeting and approve the transformation.
2. Reduce the minutes to a public deed.
3. Protocolize the Certificate of Validity of the Shareholders.
4. Carry out the transformation in the Companies and Partnerships Registry, attaching the required documents.

Attention! Even if you have an Advanced Electronic Signature, you must sign some documents at the notary.

How can I dissolve the Closely Held Corporation?

If it is time to close the business:

1. Call an Extraordinary Shareholders' Meeting and agree to the dissolution.
2. Reduce the minutes to a public deed.
3. Protocolize the Certificate of Validity of the Shareholders.
4. Request the Termination of Activities at the SII if applicable.
5. Complete the dissolution form in the Registry and sign electronically.

In special cases, such as S.A.G.R., you need authorization from the creditors.

What is the Shareholders Registry?

It is like the official list of members of your exclusive club. In this registry you record:

• Name and details of each shareholder.
• Number of shares owned.
• Registration date.
• Transfers and liens on the shares.

It is mandatory and can be a physical or digital book. It is essential to keep everything in order!

What is the Shareholders Registry for in S.A?

It serves to:

• Keep the shareholder list up to date.
• Record changes in the ownership of shares.
• Keep transparent and orderly control of the ownership structure.

It is essential for the good management and transparency of your S.A.

Company by Shares (SpA)

Did you know you can create a SpA by yourself? That's right! A SpA can be formed by one or more persons, even a single shareholder. It is ideal if you want to start alone and then open the door to others.

Best of all, liability is limited to the capital contributed. So you can forget about risking your personal assets. Your house is safe!

La SpA te ofrece una flexibilidad increíble tanto en la administración como en la estructura societaria. Puedes diseñar la gestión como prefieras, haciéndola tan simple o tan sofisticada como necesites.

In addition, adding or removing partners is super simple, which makes it a perfect option if you plan to expand the business in the future. No complicated paperwork!

What is a Sociedad por Acciones (SpA)?

Imagina que quieres montar tu propio negocio y tener total flexibilidad para organizarlo a tu manera. ¡La SpA es tu mejor amiga en este caso! Es una empresa que puedes constituir tú solo o con otros socios, sean personas naturales o jurídicas. Aquí, tu participación se representa a través de acciones. En pocas palabras, es como tener tu propio club exclusivo donde decides quién entra y cómo se maneja todo.

Why choose a SpA?

The SpA is the “secret weapon” of many entrepreneurs for several reasons:

• Total flexibility: You can form it by yourself, which is great if you want full control.
• Ease of attracting investors: The capital is divided into shares, making it easier for new partners to enter if at some point you want to expand or share the pie.
• Freedom in management: You can choose simple management or create a more complex structure. The SpA adapts to your needs!

What must the bylaws of a SpA contain?

The bylaws are like the rules of the game for your company. According to Law No. 20.190, you must include:

• Company Name: Must end with “SpA.” For example, “Innovaciones Futuras SpA.”
• Name and address of the shareholders: Who are they and where do they live?
• Corporate purpose or business line: What will your company do? It must be a commercial activity.
• Corporate domicile: Your company’s official address.
• Company capital: How much money (or assets) the partners contribute and into how many shares it is divided.
• Company administration: How will it be managed? Who are the provisional representatives?
• Company duration: For how long will it be active? If you do not specify it, it is understood to be indefinite.

Can I divide the capital into a non-integer number of shares?

¡No, señor! Las acciones son como las porciones de una pizza: no puedes tener media aceituna en una porción. El capital debe dividirse en un número entero de acciones para cada accionista. Las acciones son indivisibles, así que cada uno debe tener un número completo.

What can I contribute to a SpA?

El aporte clásico es dinero, pero también puedes contribuir con bienes como propiedades, derechos o acciones de otra sociedad. Eso sí, si después quieres aumentar el capital aportando algo que no sea dinero, necesitas la aprobación de una Junta Extraordinaria de Accionistas y un informe de expertos que valoren ese bien. Y recuerda, no puedes aportar trabajo o servicios como capital; eso no está permitido en una SpA.

How should I complete the corporate name of a SpA?

¡Es hora de darle nombre a tu criatura! La única regla es que termine con «SpA» (con S y A mayúsculas, y p minúscula). Puedes dejar volar tu imaginación: «Sueños Digitales SpA», «Sabores del Mundo SpA», «TecnoSoluciones SpA», ¡lo que quieras!

What requirements must the trade name of a SpA meet?

Like the corporate name, the trade name must end with “SpA”. So you can be creative as long as you include that acronym at the end. It’s your opportunity to stand out!

How is the capital indicated in a SpA?

Debes especificar claramente el capital en los estatutos y dividirlo en un número determinado de acciones. Es buena práctica dividirlo en varias acciones para facilitar futuras transacciones. Recuerda que cada acción debe estar a nombre de una persona natural o jurídica.

Are there different types of shares?

Of course! In a SpA you can have shares ordinary and preferred.

What do common and preferred shares in SpAs consist of?

• Common shares: They are like general admission tickets; everyone has the same political, economic, and information rights. They are the same for all shareholders.
• Preferred shares: Son las entradas VIP; ofrecen beneficios especiales que se establecen en los estatutos. Pueden otorgar derechos políticos o económicos adicionales, pero no son para siempre; tienen una duración limitada y están sujetas a caducidad.

What does the administration of the SpA consist of?

This is where the SpA shows its flexibility. You can choose the type of administration that best suits you:

• Joint administration: All administrators make decisions together.
• Separate administration: Each administrator can act on their own.
• Joint and separate administration: A mix of both.
• Board of Directors: Similar to a Sociedad Anónima, with a group of directors.
• Manager: One person is in charge of the administration.
• Other forms: You decide!

The law gives you freedom to choose the model that best fits your needs.

What are the incompatibilities of the Directors, Manager, and Auditor?

Según la ley, el cargo de gerente es incompatible con ser presidente, auditor o contador de la misma empresa. Y en el caso de Sociedades Anónimas abiertas, tampoco puede ser director. Esto es para evitar conflictos de interés y asegurar una administración transparente.

Who are disqualified or incapable of holding the position of Director and Manager?

Not everyone can hold these positions. They are disqualified:

• Minors.
• Removed directors after rejecting the financial statements twice at the meeting.
• Debtors in liquidation proceedings.
• Convicted persons for crimes with sentences over 3 years.
• Disqualified permanently from public office.
• Officials of certain public companies.

In addition, according to the Civil Code, are incapable:

• Adult minors (over 14 but under 18).
• Persons with dementia.
• Deaf or deaf-mute persons who cannot communicate clearly.
• Spendthrifts or interdicted persons, that is, those who cannot legally manage their assets.

What is the duration of the SpA?

La duración es la que tú y tus socios decidan al momento de constituirla. Puede ser por un plazo fijo o indefinido. Si no lo especificas, se entiende que es indefinida. ¡Así que puede durar tanto como tú quieras!

What are the grounds for termination of a SpA?

A SpA may be dissolved by:

• Expiration of the term established.
• Agreement of the Extraordinary General Meeting of Shareholders.
• Final court judgment.
• Other grounds that have been contemplated in the bylaws.

How are the bylaws amended?

If you need to change the rules of the game, you must:

1. Hold an Extraordinary Shareholders' Meeting (or Shareholders' Agreement) where the amendments are discussed and approved. The minutes must be notarized or reduced to a public deed.
   • If there is more than one shareholder, you must comply with the prior notices, unless all shareholders with voting rights are present.
2. File the Shareholders’ Certificate of Good Standing.

Then, you make the modification in the Registry of Companies and Partnerships, attach the documents, and you're done!

Is it necessary for all shareholders of a SpA to sign the modification form?

Generally, yes. All shareholders who participated in the meeting must sign. However, they can appoint a Attorney-in-fact at the meeting to sign on behalf of all. This person must be named in the minutes and their details must be included in the form when executing the action.

How can I add new shareholders to a SpA?

You can do it in two ways:

1. Sale of shares: Se realiza mediante un documento privado firmado por el vendedor (cedente) y el comprador (cesionario). La firma puede hacerse ante notario, dos testigos mayores de edad o un corredor de bolsa. Luego, debes:
   • Record the sale in the Shareholders' Registry.
   • Notify the Internal Revenue Service (SII) in person.
2. Capital increase: Issuance of new shares that the new shareholder subscribes to, contributing fresh capital. In this case, you need to carry out a bylaws amendment following legal formalities.

You can also record the sale of shares in the Registry of Companies and Partnerships if you wish.

Is it possible to sell 100% of the shares of a SpA?

Of course! You can sell all the shares of the SpA, either in one or several transactions, following the same procedure as for any share purchase and sale.

Can I sell my shares to my spouse or civil partner?

No, the law does not allow the purchase and sale of shares between spouses or civil partners. You will have to find another way to share the business.

How can I remedy my SpA?

If your SpA has any legal error or «grounds for nullity», you must:

1. Hold an Extraordinary Shareholders' Meeting to correct the errors. The minutes must be reduced to a public deed.
2. Obtain a Certificate of Validity of the Shareholders protocolized before a notary.
3. Carry out the rectification procedure in the Companies and Partnerships Registry, indicating what you want to correct and attaching the documents.

Then, the shareholders must sign electronically. The Registry will review and accept the request if everything is in order.

How can I rectify my SpA?

To correct minor errors:

1. Complete the rectification form in the Companies and Partnerships Registry, indicating the changes.
2. Sign electronically the request.

The Registry will review and accept the correction if it meets the legal requirements.

How can I transform my SpA into another legal form (LTDA., S.A., E.I.R.L.)?

If you decide that another type of company suits you better:

1. Hold an Extraordinary Shareholders' Meeting and agree to the transformation. The minutes must be notarized or reduced to a public deed.
2. Protocolize the Certificate of Validity of the Shareholders.
3. Carry out the transformation on the Registry’s web form, attaching the required documents and signing electronically.

Remember that, even if you have an Advanced Electronic Signature, you will have to sign some documents at a notary.

How can I dissolve my Sociedad por Acciones?

If it is time to close the business:

1. Hold an Extraordinary Shareholders' Meeting and agree to the dissolution. The minutes must be notarized or reduced to a public deed.
2. Protocolize the Certificate of Validity of the Shareholders.
3. Request the Termination of Activities before the SII, if applicable.
4. Complete the dissolution form in the Registry and sign electronically.

Again, even if you have an Advanced Electronic Signature, you will have to sign certain documents at a notary.

What is the Shareholders Registry?

It is like the registry book of your exclusive club. It is mandatory for all capital companies and serves to:

• Keep an up-to-date list of shareholders.
• Record their personal data.
• Note their shareholding.

It can be a physical or digital book. If it is physical, it is purchased at a bookstore and the company’s administrator is responsible for keeping it up to date.

The registry must be continuous, without erasures or blank spaces, and must contain at least:

• Name of the shareholders.
• Address.
• Identity card or RUT.
• Number of shares they own.
• Registration date and payment details if the shares are not fully paid.
• Liens or real rights over the shares.
• Share transfers carried out.

What is the Shareholder Register for?

It is essential for:

• Controling and keeping the full shareholder list up to date.
• Recording the subscription and value of each person's shares.
• Verifying who the current owners of the company are.

In summary, it is essential for transparency and the proper functioning of your SpA.

Why choose a Corporation by Shares (SpA)?

Choosing one Company by Shares (SpA) can be a sound decision for the following reasons:

1. Flexibility:
   • The SpA has a flexible framework for the corporate structure and allows defining standards and rules tailored to the partners' needs.
   • It can be incorporated with a single partner, which is ideal for individual entrepreneurs who want to grow without major limitations.
2. Limited liability:
   • Shareholders are not liable for the company's debts beyond the capital contributed. This protects the owners' personal assets, reducing financial risk.
3. Ease of adding new shareholders:
   • The SpA makes it easier for shareholders to enter and leave without needing to modify the company's bylaws.
   • It is a good option to attract investors or new partners in the future, since the transfer of shares is simple.
4. Administrative simplification:
   • A diferencia de una Sociedad Anónima (SA), la SpA no requiere la constitución de un directorio ni la celebración de juntas de accionistas de forma obligatoria, lo cual la hace más fácil de administrar.
5. Fast and less costly formation:
   • The process of forming a SpA is fast and administrative costs are lower compared to those of a Corporation.
   • In addition, it can be formed online through the Registro de Empresas y Sociedades (RES) of Chile, which reduces processing times.

When is a SpA advisable?

• If you are an entrepreneur who is starting out and want to protect your personal assets.
• If you seek flexibility in the company's structure and operation.
• If you are thinking about future growth with the entry of new investors or partners.
• If you want to minimize costs and administrative bureaucracy.

In summary, the Company by Shares (SpA) combines the simplicity of formation with flexibility and asset protection, making it an excellent option for entrepreneurs and small businesses looking to expand in the future.

We hope this guide has been useful and has put a smile on your face. In Iberocapital we are here to support you every step of your business journey. 

Si deseas que profesionales se encarguen de la constitución de tu empresa, en Iberocapital contamos con planes de creación de empresa desde 24.980 pesos chilenos, y planes completos por valores de 119.980. Puedes ver más información de how we create your company in one day.

If you have more questions or need personalized advice, do not hesitate to contact us! We are ready to help you turn your business dreams into reality.