Chilean corporate law provides a wide range of different legal terms and entities to solve business. Most commercial companies use the following general corporate forms:
- Limited Liability Company(LLC or LTD). The number of participants is from 2 to 50
- Individual Limited Liability Company(Individual LTD). For a single partner.
- The joint-stock company with an unlimited number of partners.
- Branches and representative offices of foreign companies in Chile
General requirements of the corporate structure in Chile
As long as the registered company works in Chile, It is obligatory to appoint a nominee director (with residence or Chilean citizenship) or to receive a residence (residence permit) for one of the partners
The size of the authorised capital of the Chilean company
Chilean legislation not specific minimal amount of authorised capital for Chileans companies, however an extremely small capital can be an obstacle for opening a corporate account.
Requirements for the legal address
For activation and obtaining VAT identification number in the Revenue Service, corporate must have a registered office address.
Other costs and fees of registration of companies in Chile.
It is very important to get a municipal permit (patent) to make business, its annual cost is approximately equal (depending of the district) to the 0,25% - 0,50% percent of the authorised capital of the company, with the fixed minimum
Separately it is necessary to mention the companies cost of service to maintain its work efficiency.
In Chile you must:
1. Submit a monthly report in an electronic form
2. Submit a monthly declaration of VAT, even at zero returns, otherwise the company can be closed forcibly.
3. Get a municipal permit (commercial patent) for your activity, the penalties for conducting activities without a license are quite high.
4. In addition, it is necessary to take the balance sheet and an annual report from the 1st to 25th of April for the previous fiscal period