Relocating to Chile to Start a Business: What You Should Know

Chile has become an increasingly popular destination for entrepreneurs and business owners looking to expand their operations or start a new venture. With a stable economy, a thriving entrepreneurial ecosystem, and business-friendly policies, Chile offers numerous opportunities for international businesspeople. If you’re considering relocating to Chile to start a business, it’s essential to understand the country’s economic landscape, legal framework, and cultural environment.

In this article, we will cover everything you need to know about relocating to Chile to start a business, including key steps in company formation, immigration requirements, taxes, and local market insights. Whether you’re launching a tech startup, opening a retail business, or establishing a service-based company, this guide will help you navigate the relocation process and set up your business successfully in Chile.

Why Choose Chile for Your Business?

Chile stands out as a strong business hub in Latin America for several reasons:

Stable Economy: Chile is known for its robust economy and one of the most stable in the region. The country has a long history of sound economic policies, low inflation, and low unemployment rates. It is a member of the OECD (Organization for Economic Cooperation and Development), highlighting its commitment to economic growth and development.
Supportive Government: The Chilean government actively supports entrepreneurship and foreign investment. The country offers various incentives and programs to encourage new businesses, including tax breaks and simplified procedures for foreign investors.
Trade Agreements: Chile has signed numerous trade agreements with countries and regions such as the European Union, the United States, and China, making it an attractive base for companies looking to expand across Latin America and beyond.
Well-developed Infrastructure: Chile boasts modern infrastructure, including advanced telecommunications, well-maintained roads, and a reliable transportation system. This facilitates the smooth operation of businesses, both for local and international markets.
Business Ecosystem: The entrepreneurial ecosystem in Chile is vibrant, especially in sectors like technology, renewable energy, agriculture, and retail. The country has a growing network of incubators, accelerators, and venture capital funds supporting startups and small businesses.

For these reasons, relocating to Chile to start a business can be an exciting opportunity with high potential for success.

Immigration and Visa Requirements for Entrepreneurs

Before you can set up your business in Chile, you’ll need to meet the country’s immigration requirements. As a foreign national, you’ll likely need a visa to stay and work in Chile. Fortunately, Chile offers a range of visa options for entrepreneurs, investors, and business owners:

Types of Visas for Entrepreneurs

Temporary Resident Visa for Entrepreneurs: This visa is available to foreigners who want to establish a business in Chile. To qualify, you’ll need to prove that you have a solid business plan, the necessary capital, and the intention to create jobs in the country.
Investor Visa: If you plan to invest in an existing Chilean business or start a new business with significant financial backing, the Investor Visa is a suitable option. This visa requires proof of investment and a detailed business plan, which may need to meet a minimum capital threshold.
Professional Visa: If you are employed in a specific field (such as tech, law, or healthcare), you may be eligible for a Professional Visa. This allows you to stay and work in Chile based on your professional qualifications.

For each visa type, you’ll need to submit documents such as a passport, proof of sufficient income or investment, and any certifications related to your business or profession. The application process can take several weeks to months, so it’s essential to plan ahead.

Steps to Start a Business in Chile

Starting a business in Chile involves several steps, from registering your company to obtaining the necessary permits and licenses. Here’s a breakdown of the process:

Step 1: Choose Your Business Structure

There are several legal structures you can choose from when starting a business in Chile:

Individual Limited Liability Company (EIRL): This structure is ideal for sole entrepreneurs. It provides limited liability protection, meaning you are not personally responsible for the business’s debts.
Limited Liability Company (SRL): An SRL is suitable for small businesses with multiple owners. It offers flexibility and limited liability to the partners.
Corporation (SA): This is a more complex structure, typically used by larger businesses or those seeking investment. An SA is governed by a board of directors and requires more formalities compared to an EIRL or SRL.

The structure you choose will depend on the size and scope of your business, your investment plans, and whether you will have business partners.

Step 2: Register Your Company

Once you’ve decided on the legal structure of your business, the next step is to register your company. You’ll need to do the following:

Obtain a RUT (Rol Único Tributario): This is the Chilean tax identification number, and you’ll need it for all official business activities, including invoicing and tax filings.
Draft and Notarize Your Company’s Articles of Incorporation: This document outlines the company’s name, purpose, structure, and management.
Register with the Commercial Registry: Your company must be registered with the Registro de Comercio to make it legally recognized.

Step 3: Obtain Necessary Licenses and Permits

Depending on your business type, you may need various licenses and permits to operate legally in Chile. For example:

Municipal License: All businesses in Chile need a municipal license, which is issued by the local municipality where the business is based.
Health Permits: If your business involves health or food services (such as a restaurant or beauty salon), you’ll need to comply with specific health and safety regulations.

Additionally, foreign businesses in Chile must comply with local labor laws, including paying employee benefits and complying with social security requirements.

Step 4: Open a Bank Account

To facilitate financial transactions for your business, you’ll need to open a business bank account in Chile. The process usually requires a RUT, proof of company registration, and other identification documents. Several banks in Chile offer specialized services for foreign businesses, so it’s important to shop around for the best options for your needs.

Understanding Taxes in Chile

Chile has a competitive and transparent tax system, which is beneficial for foreign entrepreneurs. Here are the key taxes you should be aware of:

Corporate Income Tax: The standard corporate income tax rate in Chile is 27% for companies. This rate applies to both foreign and local businesses.
Value Added Tax (VAT): VAT in Chile is 19%, which applies to most goods and services. However, some goods and services, such as export sales, may be exempt.
Employee Taxes and Social Security: Employers are required to contribute to pension plans, health insurance, and unemployment insurance for their employees. This is an important cost to factor in when hiring local staff.

Foreign entrepreneurs should consult with a tax advisor to ensure compliance with local tax laws and optimize their tax planning.

Finding a Location for Your Business in Chile

The location of your business is critical to its success. Chile has a diverse geography, with urban centers like Santiago, Valparaíso, and Concepción offering more access to customers and resources. However, smaller cities and towns may offer more affordable overhead costs and less competition.

Here are some location considerations:

Santiago: As the capital and largest city, Santiago offers the most significant market opportunities, but it also comes with higher real estate and operational costs.
Valparaíso: A major port city known for its vibrant culture, Valparaíso may be a good option for businesses in the tourism, retail, or export industries.
Smaller Cities: If you’re looking for lower costs, consider expanding your business in smaller cities, where there may be less saturation and competition.

The location will also impact your customer base and the type of staff you can hire, so choosing wisely is crucial.

Why Choose B2B Hub for Your Business in Chile?

Relocating and starting a business in a new country can be daunting, but with the right support, the process can be straightforward and successful. B2B Hub offers comprehensive company formation and corporate services for entrepreneurs looking to establish businesses in Chile.

With B2B Hub’s assistance, you can benefit from:

Expert guidance on company registration, RUT acquisition, and legal compliance.
Support with visa applications and immigration processes for you and your team.
Advice on local tax laws and financial systems to ensure your business runs smoothly.
Ongoing support for legal, accounting, and regulatory matters.

At B2B Hub, we specialize in making the relocation and business formation process easier for entrepreneurs and foreign investors. For inquiries, please contact us at +44 770 018 3107, visit our website atb2bhub.ltd, or send us an email at reg@b2bhub.ltd.

Relocating to Chile to start a business offers numerous opportunities for growth and success. With a stable economy, a supportive business environment, and an attractive quality of life, Chile remains one of the most promising destinations for entrepreneurs looking to expand in Latin America. By following the steps outlined in this guide and seeking professional support, you’ll be well-positioned to build a thriving business in Chile.