Doing business in: Chile
Produced in partnership with Albagli Zaliasnik

The following Commercial practice note produced in partnership with Albagli Zaliasnik provides comprehensive and up to date legal information covering:

  • Doing business in: Chile
  • Legal frameworks for operating in Chile
  • Frameworks for operating in Chile
  • Incorporation of a company
  • Most common business vehicles and key features
  • Powers of attorney and other ways of representation
  • Highlights regarding foreign investment’s regulation
  • Taxation overview
  • General
  • Income tax
  • More...

Doing business in: Chile

Updated September 2021

Chile is the most economically stable country within South America and, in terms of The World Bank, a ‘high-income economy’. Chile also has the highest economic freedom score in South America (19th worldwide) under the 2021 Index of Economic Freedom. This score reflects its openness to global trade and investment, and its transparent regulatory environment as well as strong rule of law which continue to provide a solid basis for economic dynamism.

Legal frameworks for operating in Chile

Frameworks for operating in Chile

In commercial practice and under current legislation in Chile—which we will review in the next section—there are several ways for non-residents to invest in Chile. The general rule is that there are no limitations for non-residents to do business in Chile or to invest in local companies. Domestic legislation offers several types of companies. However, considering its flexibility, a joint stock company (Sociedad por Acciones) is usually the company of choice.

Nevertheless, this will depend on investor preferences and the type of business intended.

Additionally, foreigners not only invest through known legal entities, but also through representatives, agencies, and/or types of legal contracts. For instance, investments may be structured though joint ventures, permanent establishments, private equity, investment funds, distribution agreements, franchise agreements, amongst others.

The way investments are handled will depend on how the investor intends to manage and administrate their

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