Optimizing Company Incorporation Processes in Chile

When it comes to Company Incorporation Processes, we have seen it countless times: a neat list of activities with no clear time estimates, leaving ample room for delays that will affect clients' business plans and schemes. Even worse, one often just sees copies/pastes of processes from other jurisdictions in the Region, which provide only guidance and reference information.

Company Incorporation Processes in Chile

At South Gate, we pride ourselves on being different by providing precise feedback from the start, so the client really knows what to expect and when. That is why, with us, clients can expect the following milestones:

#1 - Kickoff Meeting:

Bilingual lawyers and accountants attend to ensure all initial and cross-functional queries are resolved. The session begins with a Process Walkthrough, followed by focused discussions and a Q&A covering legal, HR, tax, payroll, and compliance matters.

#2 - Power of Attorney

Within 2 business days of the kickoff meeting, clients will receive a draft of the Power of Attorney in English and Spanish for their review. At this point, we will also provide clear and concise instructions for the management and execution of the PoA, outlining when these steps should occur and a timeline for the corporate documents required from the Parent Foreign Company.

#3 - Bylaws Draft

Sent in English for the client´s review and comments within the next 5 business days of the kickoff meeting.

#4 - Tax ID for international Shareholder(s)

After the PoA's hard copy is received and registered at a local notary, the request will be submitted to the local Tax Authorities within the next 4 business days

#5 - Bylaw execution at a local Public Notary:

Once we engage our trusted Notary, the bylaws can be signed and an official copy generated within 2 business days.

#6 - Post-signature formalities:

Starting from the date the bylaws are signed, we will, within the following 5 business days, publish and register an excerpt with the pertinent Public Entities.

#7 - Tax ID Obtention (RUT):

The day after the excerpt is published in the Official Gazette, we will request and acquire the local Tax (RUT) number. Once obtained, the company can hire employees and enter into commercial contracts.

#8 - Filing the “Initiation of Activities” affidavit:

After obtaining the RUT number, we will submit a sworn affidavit to the local Tax Authorities declaring that the company is ready to operate. This milestone triggers monthly tax compliance for the new entity.

#9 - Bank Account Procedures:

On the business day following the filing of the Initiation of Activities affidavit, we formally request bank accounts in CLP, USD, and EUR with our Partners at Santander Bank.

#10 - Commercial License:

Within 3 business days of filing the "Initiation of Activities" affidavit, we will submit the commercial license application to the relevant city hall. This license is mandatory for all businesses, requires semi-annual renewal and payment, and the fee is determined by the declared social capital.