Every foreign investor seeks information of limited company registration fees in Chile. The Republic of Chile is a South American country situated between the Andes to the east and the Pacific Ocean to the west. The GDP per Capita in Chile is 13,792.93 USD and equivalent to 119 percent of the world’s average. The currency is Chilean peso and is equivalent to 0.0016 US$.
Limited Liability Company in Chile
There are two types of Limited Liability Company formats available in Chile, the Sociedad de Responsabilidad Limitada [LTDA], the Sociedad Anonima [SA]. The Sociedad Anonima [SA] can also be a publicly limited company. The Sociedad de Responsabilidad Limitada [LTDA] can be formed with minimum 2 and maximum 50 shareholders. There is no minimum capital contribution requirement for this sorts of company. On the other end, the Sociedad Anonima [SA] can also be a publicly limited company and requiring minimum 2 shareholders to form. There is no bar on maximum numbers of share holders for this type of limited companies. While there exists no minimum capital requirement like the LTDA, one-third of the share capital [whatever fixed by the share holders] must be paid at the time of registration and the rest within three years of operation. These sorts of Limited Liability Companies [LLCs] can be 100% owned by foreigners in Chile.
While a limited company registration is free in Chile, some costs are involved to perform some specific formalities to turn the registered company into an operable one. Following are the procedures to register a limited liability company in Chile.
Draft online the Articles of Association [A&A] of the company and securing an authentication number
By logging on to www.tuempresasenundia.cl, the entrepreneurs draft the Articles of Association of their company and do secure an authorization number. This authorization number would allow the entrepreneurs to make an appointment with a Notary public to get electronic signature/s of the partners of the company. The people who will be part of the company can identify themselves using these digital or electronic signatures.
This online procedure would take less than a day and no costs.
Certifying the Articles of Association [A&A] with an electronic signature online
Since On February 8, 2013, Law 20.659 May 2, 2013, The new law 20.659 that came into being in 2013, has simplified the process of registering a limited liability company [LLC] in Chile and enabled the entrepreneurs to register their companies online through at no cost. The new system also permits users to register, modify or cancel a company online without any charges. The Software will convert all of this information into a document that will then be sent to the Internal Revenue Service and allow the company to begin operating immediately, as well as assign a taxpayer ID or RUT [Rol Unico Tributario] number in Chile. The system will require that all partners subscribing to the document have an advanced electronic signature, or that they do the process with a notary that uses his own advanced electronic signature. In such case, the entrepreneurs have to pay the Notary CLP 6,000 per signature. This would require one working day.
Performing Initiation of Activities with Chilean Internal Revenue Service [IRS] online
Along with the registration, the entrepreneurs should get a Chilean Tax ID (RUT number) to start operations. The entrepreneurs should also perform the “initiation of activities” or “Inicio de Actividades” before the Chilean Internal Revenue Service IRS. This, in fact, is a sworn statement submitted to notify that the taxpayer is going to start or develop commercial activities in Chile. These procedures can be carried out by logging on to the Chilean IRS website. This process would take just one working day to complete.
Printing of Receipts or Invoices of the newly formed company
Following the formats of the Internal Revenue Service these documents can be printed anywhere. These printed receipts or invoices will have to be stamped by the Chilean Revenue authority [IRS] and remains valid for the period of time as authorized by the concerned tax authority.
As per Law 20.727, with effect from November, 2014, most of the VAT tax documentations like invoices, debit and credit notes etc. shall be issued electronically. The Law No. 20.727 also made the use of electronic invoicing as mandatory, since January 31, 2014 for companies with annual earnings higher than 100.000 UF [The UF or Unidad de Fomento is a Unit of account used by the Chilean government. The SMEs [small and medium sized enterprises] must comply with electronic invoicing, as of July 2016. The cost of 50-page such book is US$ 43. This process would require one working day to complete.
Sealing of Books of Accounts, Invoices and other documents at the IRS
In line with the provision of the Chilean Company law, all Books of Accounts, Invoices, receipts etc. must bear the tax registration number [RUT] to be sealed. However, in case of using electronic invoices, the companies are not required to seal these documents. This procedure would require one working day and no cost.
Receiving Patente Municipal, the working license from the competent municipality
Following registration of the company, the companies should get a working license from the concerned municipality, so as to start business operation as per the Decree Law 3063/1979. There exists a mandatory separate licensing requirement for each of the enterprise’s establishments, offices, warehouses and so forth from the relevant municipality. One working day is required simultaneously with the previous procedure.
Registering with the labor-related accident insurance Seguro Social contra Riesgos de Accidentes del Trabajo y Enfermedades Profesionales at the Mutuales de Seguridad, the private non-profit organisations
In accordance with the article 15 of the Law 16.744, it is mandatory for the employer to pay insurance that covers work related accidents and professional illnesses. The company owners can either pay the insurance to the Instituto de Seguridad Laboral, ISL, or to private nonprofit entities known as Mutuales.
One working day is required simultaneously with the previous procedure. We shall collect more information to give a full scenario of limited company registration fees in Chile.