Ways to operate in Chile
Nonresident individuals and companies can operate in Chile in one of the following ways:
• By appointing a representative.
• By registeringan agency or branch of a foreign entity .
• By forming a partnership or corporation under Chilean law.
• By forming a limited liability individual enterprise.
• By setting up a company by shares.
Through a representative
A representative acts on the basis of a mandate, contained in a contract that the nonresident principal confers to a Chilean resident individual or entity. The representative acts on behalf and at the risk of the foreign principal to carry out one or more business transactions. The principal and the representative are free to agree whether or not the latter will receive any remuneration.
By registering a Chilean branch or agency of a nonresident foreign entity
The foreign entity must appoint an agent to set up the branch. The agent must notarize the following documents that must be written in the official language of the foreign country and must be accompanied by a translation into Spanish, if they were granted in another language:
• Proof that the entityis legally incorporated abroad.
• Certification that the entity is still in existence.
• Authenticated copy of the entity's current statutes.
• • General power of attorney issued by the entity to the agent that will represent it in Chile; the power of attorney must state clearly that the agent acts in Chile in the entity’s name with broad powers. At the same time, the agent, on behalf of the entity, must notarize a deed that indicates, amongst other, the following information:
• The entity will maintain in Chile current assets to cover the liabilities that must be served in Chile.
• The effective capital assigned to the Chilean branch or agency, and the way and dates that such capital will be brought into the country.
• The domicile of the main agency or branch in Chile.
Within sixty days, a summary of the notarized documents must be filed in the Register of Commerce. Within the same period, the summary must also be published in the Official Gazette web site, for which prupose the Notary Public should send electronically to the Official Gazette a digital copy of the relevant summary.
By forming a partnership or corporation
A Chilean partnership or corporation, which requires a minimum of two partners or shareholders, can be formed with one or more foreign partners or shareholders. The types of entities and how they are formed are detailed in the following chapter.
By setting up a limited liability individual enterprise
A limited liability individual enterprise is a legal entity with its own assets and liabilities, separate from those of the individual holder.
Only one individual, a Chilean or a foreigner, is required to set up a limited liability individual enterprise.
Limited liability individual enterprises must be incorporated by means of a public deed, which should contain at least those stipulations required by law.
A summary of the public deed, duly authorized by the Notary Public before whom it was signed, must be filed with the Register of Commerce corresponding to the domicile of the enterprise, and must be published within the sixty days following the deed’s date in the Official Gazette web site, for which prupose the Notary Public should send electronically to the Official Gazette a digital copy of the relevant summary.
By setting up a company by shares
A company by is the only corporate entity which can have only one shareholder. For more detail of this type of legal entity, please, contact us.