Chile lets a foreign company own 100% of a local subsidiary, and the incorporation itself can be done online in a day. What takes time is everything around it: legalising documents abroad, getting tax IDs, and opening a bank account. This guide walks a European SME through the full sequence, in the order it actually happens.
Key takeaways
- Most foreign SMEs choose a SpA (Sociedad por Acciones): one shareholder is enough, governance is flexible, and it can be registered online for free.
- Your foreign parent company needs its own Chilean tax ID (RUT) before it can become a shareholder. This is usually the first real bottleneck.
- You need a legal representative domiciled in Chile to deal with the tax authority (SII) and, in practice, with banks.
- Plan 4 to 10 weeks end to end, not one day. Document legalisation abroad and the bank account take most of that time.
- Capital transfers above USD 10,000 must go through Chile’s formal exchange market and are reported to the Central Bank.
Step 1: Choose the right legal structure
Chilean law places no general restriction on foreign ownership: foreign capital can hold up to 100% of a company, with narrow exceptions (border-zone land, fishing, some maritime and nuclear activities). The real choice is between four vehicles.
| Structure | Minimum shareholders | Liability | Can use online registry | Best for |
|---|---|---|---|---|
| SpA (Sociedad por Acciones) | 1 (individual or company) | Limited to capital | Yes | Most SME subsidiaries: flexible, single-owner, easy to bring in partners later |
| Limitada (SRL) | 2 (max. 50) | Limited to contributions | Yes | Partnerships between known partners; less flexible to transfer shares |
| S.A. (closed) | 2 | Limited to shares | Yes | Larger projects needing a board and formal governance |
| Branch (agencia) | — | Parent company fully liable | No | Short-term projects or tenders; the parent carries all the risk |
For a European SME testing or building the Chilean market, the SpA is the default choice. It can be created by a single foreign company, its bylaws set governance freely, and its capital must be fully paid within three years (it is automatically reduced to what was paid otherwise).
A branch avoids creating a new legal entity, but it requires notarising and registering the parent’s full corporate documents in Chile and exposes the parent’s balance sheet to local liabilities. We compare the options in detail in our upcoming guide SpA, SA or Branch?.
Step 2: Prepare your documents at home
Start here, because this is the step you control least once you are in Chile. For a foreign company that will own the Chilean SpA, the tax authority and notaries typically ask for:
- A certificate of incorporation and good standing of the parent company (in France, a recent Kbis extract)
- The parent’s bylaws (statuts)
- Proof that the signatories can grant powers on behalf of the parent
- A tax residence certificate showing the parent’s foreign tax ID
- A power of attorney naming your representative in Chile, with powers to sign SII forms, receive notifications and incorporate the company
Every document must be apostilled (France and most EU countries are parties to the Hague Apostille Convention) and translated into Spanish. The power of attorney can be signed before a Chilean notary or a notary abroad; if signed abroad it must be apostilled and then authenticated by a Chilean notary.
Step 3: Get a RUT for the foreign shareholder and appoint a legal representative
In Chile, every person or entity that invests or does business needs a RUT (Rol Único Tributario), the tax ID issued by the Servicio de Impuestos Internos (SII). That includes your foreign parent company, before it can subscribe shares in the new SpA.
- The RUT is requested with form F-4415, filed in person at the SII or through your representative in Chile.
- The representative must be domiciled or resident in Chile and hold the power of attorney from Step 2.
- If you, as a director, will also be a shareholder or sign locally, you will need a personal RUT too.
Who should the legal representative be? Options are a trusted employee already in Chile, a local partner, a law firm, or a corporate services provider. Choose carefully: this person will sign before the SII, receive official notifications, and often be the face of the company for the bank.
Step 4: Incorporate the SpA online (“Tu Empresa en un Día”)
Chile’s simplified system, created by Law 20.659, is an electronic, public and free registry where SpAs, Limitadas, EIRLs and S.A.s can be incorporated, amended and dissolved: registrodeempresasysociedades.cl.
- You fill in standard forms covering the company name, purpose, capital, shareholders and management.
- Signatories sign with an advanced electronic signature, or before a notary who applies their own e-signature to the form.
- The company exists as soon as the form is signed and registered, and the registry issues certificates of incorporation and good standing.
- The company receives its own RUT at incorporation.
The alternative is the traditional route: a public deed before a notary, an extract published in the Diario Oficial and registered at the Commerce Registry of the Conservador de Bienes Raíces. It costs more and takes longer, so it only makes sense if your lawyers need bespoke bylaws the online forms cannot handle.
Step 5: Declare the start of activities with the SII
A RUT alone does not let you invoice. The company must file its start of activities (inicio de actividades), a sworn declaration that it will carry out taxable activities in Chile. It is done online at sii.cl or at an SII office, by the legal representative.
Once done, the company can:
- issue electronic invoices (facturas electrónicas), mandatory in Chile, through the SII’s free system or a paid provider;
- have its books and documents authorised by the SII;
- choose its tax regime (see the table below).
This is also the moment to hire a local accountant (contador). Monthly VAT and provisional tax filings start immediately, even before your first sale.
Step 6: Open a bank account and transfer the capital
Opening a corporate current account (cuenta corriente) is, for most foreign SMEs, the slowest step. Banks set their own conditions, but typically require:
- proof that the company is validly incorporated and that its representatives hold sufficient powers;
- the company’s RUT;
- ID, photo, fingerprint and signature registration for each legal representative;
- a Chilean address, recent bank statements, and information on the company’s activity and solvency.
In practice, banks look closely at who the representatives are and at the parent company’s track record. Prepare a short company presentation and your parent’s financial statements in advance.
Capital transfer rules. Chile has free foreign exchange, but any investment or capital contribution above USD 10,000 must be channelled through the Mercado Cambiario Formal (commercial banks and authorised exchange houses) and is reported to the Central Bank under Chapter XIV of its Foreign Exchange Regulations. Your bank handles the report when the funds arrive; keep the transfer documentation, as it underpins your right to repatriate capital and profits later.
What about the “foreign investor certificate” from InvestChile under Law 20.848? It is optional, and only available for investments of USD 5 million or more. Most SMEs do not need it.
Step 7: Municipal licence and sector permits
Before operating from an address, the company needs a patente municipal (commercial licence) from the municipality where it is based, paid in two instalments a year. Depending on your activity, you may also need sector permits: health authorisations (ISP, SEREMI de Salud), environmental assessment (SEIA) for industrial projects, or certifications for electrical and gas products (SEC).
| Step | Typical duration | What drives the delay |
|---|---|---|
| 1–2. Structure decision and documents abroad | 2–4 weeks | Apostilles, sworn translations, internal approvals at the parent |
| 3. RUT for the foreign shareholder | 1–3 weeks | Completeness of the file submitted to the SII |
| 4. Online incorporation of the SpA | 1–2 days | Availability of an e-signature or notary |
| 5. Start of activities and e-invoicing | 1 week | SII verification of the registered address |
| 6. Bank account and capital transfer | 2–6 weeks | Bank compliance (KYC) on the representatives and parent |
| 7. Municipal licence | 1–3 weeks | Municipality and type of premises |
| Total | 4–10 weeks | Several steps can run in parallel |
Tax regime at a glance
Your SpA chooses its regime at the start of activities. The main figures, per the InvestChile guide and Law 21.755:
| Item | Rate |
|---|---|
| Corporate income tax, general regime | 27% |
| Corporate income tax, Pro Pyme regime (companies with capital and turnover under set UF thresholds) | 12.5% for business years 2025–2027, then 15% from 2028 (25% base rate) |
| Withholding tax on dividends paid abroad | 35%, with a credit for corporate tax already paid (full credit for treaty countries such as France) |
| VAT (IVA) | 19% |
With a double tax treaty in force, the maximum combined burden on distributed profits is 35%; without one it can reach 44.45%. France, Spain, Germany and many other European countries have treaties with Chile. We cover this in detail in our guide to Chile’s tax system.
From the field
Get your RUT first, then be ready to negotiate with the bank. The RUT unlocks every other step, starting with the bank account: most banks are reluctant to open an account for a foreign company or individual without one. Even with a RUT, approval is often negotiated with one or several account managers. Evidence of financial stability in your home country (the parent’s audited accounts, a reference letter from your home bank, a solid trading history) can make the difference.
Don’t incorporate before you’ve validated demand. Many SMEs can test the market for 6–12 months by exporting directly or working through a distributor, then incorporate once they have recurring sales.
Start the apostilles now. Even if your decision is not final, ordering apostilled corporate documents costs little and saves weeks.
Line up the bank early. Talk to two or three banks before incorporation to understand their requirements for foreign-owned SpAs.
Frequently asked questions
Can a foreigner own 100% of a company in Chile? Yes. Foreign individuals and companies can hold 100% of a Chilean company, with narrow exceptions such as land in border zones, fishing and certain maritime activities.
Do I need to live in Chile to set up a company? No, but you need a legal representative domiciled in Chile to act before the tax authority and, in practice, before banks.
How long does it take to set up a company in Chile? The online incorporation takes a day. The full process, including a RUT for the foreign shareholder, a bank account and permits, usually takes 4 to 10 weeks.
Is there a minimum capital for a SpA? There is no legal minimum. Capital must be fully paid within three years of incorporation, but banks and some clients will expect a credible amount.
What is a RUT and who needs one? The RUT is Chile’s tax ID, issued by the SII. The Chilean company, its foreign shareholder, and any individual signing or investing locally need one.
Do I need the InvestChile foreign investor certificate? Only if you invest USD 5 million or more and want the protections of Law 20.848. It is optional.
Planning your entry into Chile? Latinsight helps European SMEs choose the right structure, find a local representative and partners, and get operational faster.
Sources
- InvestChile, How to Invest in Chile: Step-by-Step Guide for Foreign Investors, 2025 edition — chapters 01, 03 and 04 (investchile.gob.cl)
- Registro de Empresas y Sociedades — Tu Empresa en un Día
- Servicio de Impuestos Internos (SII) — form F-4415 and start of activities
- Albagli Zaliasnik — Law 21.755 on the Pro Pyme tax rate
This guide is general information, not legal or tax advice. Rules change; check with a Chilean lawyer and accountant before acting.