How to Incorporate a Company in Chile as a Foreigner
Step-by-step guide for 2026
How to Incorporate a Company in Chile as a Foreigner: Step-by-Step Guide for 2026
Chile is one of Latin America’s most attractive destinations for foreign investment, thanks to its institutional stability, open trade environment, and reliable legal framework. Any foreign national can own 100% of a company in Chile — no residency or visa required. You just need to follow the right steps.
If you have already obtained —or are in the process of obtaining— your foreign investor RUT from the SII, this article explains what comes next: how to choose the right legal entity, how to incorporate the company, and how to get it operational so you can invoice and do business in Chile.
📌 Quick answer: Any foreigner can incorporate a company in Chile without restrictions. The SpA (Sociedad por Acciones) is the most recommended entity type. The full process —from obtaining the RUT to starting business activities— takes approximately 3 to 5 weeks. |
Can a Foreigner Incorporate a Company in Chile?
Yes, without any restrictions. Chilean law does not impose limitations on foreigners who wish to incorporate companies or become shareholders. A non-resident investor can own 100% of a SpA. The only prerequisite is obtaining a Chilean RUT (tax ID), and having someone who can legally represent the company in Chile — a process handled with the Internal Revenue Service (SII) prior to any corporate registration.
Step 1: Choose the Right Legal Entity
Selecting the right entity type is a strategic decision that should be made with proper legal guidance. For foreign investors, the most common choice is the Sociedad por Acciones (SpA), though it is not the only option. The von Marttens® blog has a comprehensive guide comparing SpA, SRL, EIRL, and S.A. to help you choose the structure that best fits your project.
In general, the SpA is the recommended option for foreign investors for several reasons:
- It can be incorporated with a single shareholder.
- It allows multiple share classes with differentiated rights.
- It has fewer transfer restrictions than the SRL.
- Its bylaws are more flexible and adaptable to different business models.
- It is the most common entity type used in startups and technology companies with international shareholders.
If the project involves more than one partner, it is also worth considering whether a shareholders’ agreement should be executed before incorporation. This document —separate from the bylaws— governs the relationship between shareholders, exit mechanisms, and decision-making processes, and is especially relevant when partners are located in different countries.
Step 2: Draft the Bylaws
The bylaws define the identity and rules of the company: its name, corporate purpose, capital, management structure, voting mechanisms, and share transfer rules. They must be drafted in Spanish and comply with specific legal requirements depending on the chosen entity type.
Step 3: Incorporate the Company
Incorporation can be done through two routes:
- Before a Chilean notary: the investor’s representative —or the investor in person if they are in Chile— signs the public deed of incorporation. This is the most common route for larger investments.
- Through the Company Registry Portal (RES): requires an advanced electronic signature. It is faster and involves no notary fees, though it offers less flexibility in the bylaws.
If the investor is abroad and cannot travel to Chile, they may grant an apostilled notarial power of attorney to a local representative to act on their behalf throughout the incorporation process. The same attorney who handled the RUT application can take on this role.
Steps 4 and 5: SII Registration and Bank Account
Once the company is incorporated, the next steps are registering the company’s RUT with the SII, declaring the start of business activities by specifying the tax classification, and establishing a fiscal address in Chile. This address may be that of the legal representative or a leased office; the SII may verify its actual existence.
With the company’s RUT and corporate documentation (registered deed, certificate of good standing, powers of attorney), it is possible to open a corporate bank account. For non-residents, the process may require additional documentation. Having a local representative significantly facilitates this step.
Tax Implications and Timeline
Companies incorporated in Chile are subject to Chilean tax law, regardless of the nationality of their owners. The most relevant aspects for a foreign investor are:
- First Category Tax: the company pays tax on its profits at a general rate of 27%.
- Additional Tax: when profits are distributed as dividends abroad, the Additional Tax applies at a general rate of 35%. A credit is available for the First Category Tax already paid.
- Double taxation treaties: Chile has signed tax treaties with several countries (Spain, Brazil, Argentina, Colombia, Mexico, Peru, France, Germany, United Kingdom, Canada, Australia, and others) that may reduce the Additional Tax rate applicable to dividends remitted abroad.
As for the timeline, a foreign investor with all documents in order can have a fully operational company in Chile in approximately 3 to 5 weeks from the start of the process.
Conclusion
Incorporating a company in Chile as a foreigner is an achievable process with the right legal guidance. The main challenges are coordinating procedures from abroad and getting the tax planning right from the start — but both have practical solutions. If you are considering establishing operations in Chile or investing from abroad, contact us for an initial consultation.
Once the company is up and running, it may require bylaw amendments, contracts with clients and suppliers, or adjustments to its corporate structure. The article on corporate modifications in Chile explains when they are needed and how to carry them out. If the company operates in the technology space, it is also worth reviewing which contracts are essential for startups and tech companies in Chile.
Do You Need to Incorporate a Company in Chile?
At von Marttens Torres, we advise foreign investors throughout the full company formation process in Chile, including RUT coordination, bylaws drafting, incorporation, and business start-up.
Contact us at vonmarttens.cl
AI usage disclosure: This article was written by members of our team. AI tools were used to improve readability and structure the content for search engines.