| LLC | JSC | Free zone Company | LLP | Rep Office | Branch Office | |
|---|---|---|---|---|---|---|
| Local Name | SRL | SA | Empresa de Zona Franca | SRL | Oficina de representación | Sucursal |
| Company Setup Time | 35 days | 40 days | 35 days | 35 days | 40 days | 40 days |
| Bank Account Opening | 15 days | 15 days | 15 days | 15 days | 15 days | 15 days |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Legal Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Chile Limited Liability Company (SRL)
- A Chile Limited Liability Company can start with as low as two shareholders and one director who may be an international resident and is not required to be a resident of Chile. The minimum share capital for setting up an LLC is as low as USD 1.
- The requirements for establishing a company in Chile include the appointment of an attorney to work as a representative of the company in the event that the LLC does not have a local resident director and
- Allowing clients and business partners to identify companies with a sole shareholder which must include “EIRL” in their name instead of SRL.
Chile Joint Stock Company (SpA)
- The requirements for the incorporation of Chile’s joint stock company are a nominal share capital of USD 1, one shareholder, and three directors who are not necessarily Chilean citizens. This type of entity is favorable for entrepreneurs who are eager to raise capital in Chile, as this entity is allowed to float its shares after incorporating the business.
- While Chile’s corporate laws do not clearly require a joint stock company to appoint local resident directors, authorities can disallow incorporation if they think that this situation may not allow the board to operate. JSCs also have an obligation to file yearly audited financial statements with the tax authority of Chile.
Branch office (Sucursal)
- Our corporate clients who intend to grow their business can incorporate a branch office in Chile. A Chilean branch is wholly owned by the parent company and a local resident representative or officer must be appointed. Similarly, prior to incorporating a branch, a government approval is required. Local branches in Chile owned by foreign companies are allowed to bill resident customers, sign contracts, and generate income from their clients.
Representative Office (Agencia)
- The option of setting up a representative office is available for companies that plan to incorporate in Chile, seeking opportunities in that country. While a representative office in Chile is wholly foreign-owned, a local sponsor or officer must be appointed by that company organization to finish the incorporation process. This setup is not permitted to do direct sales in Chile. Therefore, the rep office may involve in promotion and marketing activities of the parent company.