Invoicing in Chile: A Comprehensive Guide Requirements for Companies and Legal Entities

Before issuing its first invoice or any official tax document in Chile, a company must complete a mandatory registration with the Servicio de Impuestos Internos (SII), Chile’s internal tax authority. This registration, known as the Inicio de Actividades, legally activates the company’s taxpayer status and authorizes it to issue electronic tax documents.

This guide outlines the complete process, from forming a legal entity to completing the activity verification that unlocks full invoicing rights.

1. The Inicio de Actividades

The Inicio de Actividades is a formal declaration submitted to the SII, notifying the authority that a company has begun or is about to begin commercial activity in Chile. Governed by Article 68 of the Tax Code, this filing must occur within two months of the company’s start date. Late filings may result in fines ranging from 1 UTM to 1 UTA under Article 97 N°1 of the Tax Code.

The process is completed online at sii.cl using the Formulario 4415. The legal representative (representante legal) of the company must authenticate using their personal RUT combined with a Clave Tributaria or ClaveUnica. The filing must include the company's RUT, the full business address, the chosen economic activity code, and the selected tax regime, along with the required supporting documentation.

In most cases, the SII processes the application within one to three business days. If address or activity documentation is incomplete, the SII will place the application under observation, and the RUT will remain inactive until the issues are resolved.

2. Proving the Business Address

Declaring a business address alone is insufficient. The SII requires documentary proof that the company has a legitimate right to occupy the premises declared as its domicilio tributario. This address determines which SII regional office has jurisdiction over the company’s tax affairs.

The address must reflect where the company conducts its central administration. If the company operates from multiple locations, all branches must also be declared as sucursales. Accepted proof varies depending on the type of property arrangement:

Owned property

If the company owns the premises, acceptable documents include the Certificate of Current Ownership (Certificado de Dominio Vigente) issued by the Conservador de Bienes Raices, the original purchase deed (Escritura de Compraventa), or the Certificado de Avaluo Fiscal in the company's name. For new properties, a purchase invoice from the developer and a signed letter from the construction company confirming the sale are also accepted.

Leased property

If the company rents the premises, a lease agreement is required. The contract must be in the company’s name, not in the name of a partner, shareholder, or legal representative. For VAT-affected companies issuing facturas with credito fiscal, the lease must be signed before a Notary Public (Notario) or authenticated with a Firma Electrónica Avanzada (FEA). An unsigned or unwitnessed lease is not accepted.

The contract must include the complete address, including the Rol de Avaluo—the unique property reference number assigned by the SII to every immovable property in Chile. If the landlord does not provide this number, it can be found on the SII’s website using the property’s street address. The contract must also be current and valid at the time of submission. If the company subleases the space, both the sublease and the original lease must be submitted.

Property lent by a third party (comodato)

If a third party allows the company to use premises at no charge, a comodato agreement is required. This is a written authorization signed by the property owner before a Notary Public. It must identify both the owner and the company by name and RUT, include the full address and Rol de Avaluo of the property, state explicitly that the space may be used as a tax domicile before the SII, and specify the period of authorized use.

Virtual office

The SII accepts a virtual office address as the domicilio tributario when the company’s declared activity is intangible and can genuinely be conducted from such a location. This generally applies to consulting, technology, professional services, and similar activities that do not require physical infrastructure. The virtual office provider must supply a formal service contract meeting all the same requirements as a lease agreement: full address with Rol de Avaluo, contract duration, and signature before a Notary or by FEA.

A virtual office is not acceptable if the declared activity requires physical operations, such as storage, manufacturing, food preparation, client reception, or use of machinery. In such cases, the company must declare a physical address compatible with its business activities.

3. Choosing the Economic Activity Code

Every company must declare at least one economic activity code (código de actividad económica) from the SII’s official list during registration. This decision carries several practical consequences that go beyond a simple classification.

The activity code determines whether the company’s income is subject to VAT or exempt. Since Law 21.420 came into effect on January 1, 2023, virtually all services are now subject to VAT by default, with only specific exemptions remaining (such as health, education, qualifying professional partnerships, and a few others). The code also determines which tax documents the company is authorized to issue, whether a commercial patent (patente municipal) is required from the local municipality, and which SII tax regime criteria apply.

If the company carries out more than one type of activity, multiple codes can be declared.

Each declared activity must be consistent with the registered address type. A company that declares a logistics or food-handling code while registering a virtual office address will typically receive an observation from the SII requiring it to add a physical branch address compatible with that activity.

Changing the activity code after registration requires a formal modification (actualización de datos) to be submitted through the SII portal. This can be done at any time but requires the same type of documentation as the original filing.

4. Activity Verification

Completing the Inicio de Actividades allows the company to issue certain electronic documents immediately, such as boletas electrónicas and VAT-exempt facturas. However, to issue standard facturas electrónicas that allow clients to deduct VAT as a tax credit (crédito fiscal del IVA), the company must complete an additional step: the Verificación de Actividades.

This inspection process allows the SII to confirm that the company is genuinely operating the declared activity from the registered address. The SII has up to ten business days to complete this verification, which may involve a field inspector visiting the premises or a review of electronic records and documents the company has already submitted.

If the result is positive, the company receives full authorization to issue all types of DTEs, including tax-credit facturas. If the result is negative, the company has five business days to submit supporting evidence of its activity, such as supplier invoices, signed client contracts, or purchase orders. Failure to respond within this window requires the company to resubmit the verification request at a later date.

The SII recommends requesting verification only when the company is genuinely operational and has supporting documentation. Initiating the process before engaging in any commercial activity increases the risk of a negative result, as there will be nothing to present to the inspector.

5. Setting Up Electronic Billing

Once the Inicio de Actividades is approved and activity verification is complete for companies intending to issue tax-credit facturas, the company must register for electronic billing. Since 2018, all tax documents in Chile must be issued electronically as Documentos Tributarios Electrónicos (DTEs). Paper documents are only permitted in extraordinary situations declared by law, such as natural disasters that interrupt electricity or mobile data coverage.

The SII offers a free billing platform, the Sistema de Facturación Gratuito del SII, accessible via sii.cl once the company’s RUT is active. This system enables the issuance of all standard DTEs, including facturas electrónicas, boletas, guías de despacho, notas de crédito, and notas de débito. Companies seeking a more integrated solution may use certified third-party billing software compatible with accounting, inventory, and payroll systems.

Each DTE issued is transmitted in real time to the SII for validation before delivery to the recipient. The SII uses this data to automatically populate every company’s Registro de Compras y Ventas (RCV), which forms the basis for the monthly VAT declaration filed via Formulario 29, due by the 20th of the following month.

6. Summary of Steps

The following sequence outlines the steps a company must complete from formation to issuing its first invoice:

• Incorporate the company through the RES or by public deed before a Notary.

  
  

• Obtain the company's RUT (generated automatically through RES, or assigned separately for entities formed by notarial deed).

  
  

• Prepare documentation proving the business address: a lease agreement with notarized signatures, a property deed, a comodato, or a virtual office contract, as applicable.

  
  

• Define the economic activity code or codes that describe the company's operations.

  
  

• Choose the applicable tax regime (Pro Pyme General, Pro Pyme Transparente, or General).

  
  

• File the Inicio de Actividades through Formulario 4415 at sii.cl, attaching all required documents. This must be done within two months of beginning activity.

  
  

• Wait for SII approval, typically one to three business days. Resolve any observations regarding the address or documentation if raised.

  
  

• Request the Verificación de Actividades to unlock the right to issue tax-credit facturas. The SII has ten business days to complete this step.

  
  

• Register with the SII’s free billing system or a certified third-party platform, and issue the first electronic document.