Doing business in: Chile
Produced in partnership with Luis Felipe Arze of CMS
Doing business in: Chile

The following Commercial practice note Produced in partnership with Luis Felipe Arze of CMS provides comprehensive and up to date legal information covering:

  • Doing business in: Chile
  • Introduction
  • The business environment
  • Incorporation of a company
  • Most common business vehicles and key features
  • Financing a company
  • Opening a bank account
  • Opening a branch office
  • Utilising office space
  • Contracting with third parties
  • More...

Updated in September 2019

Introduction

Chile, although distant from most countries in the world is one of South America’s most stable and prosperous nations. The richness of Chile’s natural resources, its growth potential, stability of its macro-economic system, low level of political risk, high quality of its infrastructure, competitiveness and technology and economic freedom have transformed Chile in an entrance door to the Pacific Alliance.

The business environment

According to the World Investment Report 2019 published by the United Nations Conference on Trade and Development (UNCTAD):

‘...foreign direct investment (FDI) inflows reached US $7.2 b (+4.4%). The increase is mainly due to higher copper prices and record levels of M&A sales in the mining, health services and electricity industries, as well as a stronger interest for Chinese companies to invest in Chile. FDI stocks decreased by 1.7% reaching US $269 b (90.3% of the GDP). The US, Canada, the Netherlands and Spain represent more than the half of the FDI stock in 2017.’

Investments are mainly oriented towards mining, finance and assurance, transportation, energy and manufacture.

Incorporation of a company

Most common business vehicles and key features

According to Chilean law, there are three main legal entities that can be used as investment vehicles, these are:

  1. corporations (sociedades anónimas) which in turn can be publicly held or closely held (for the purpose of this report, only closely held corporations are analysed)

  2. joint

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