How do I start a business in Chile?

To start a business in Chile, follow 6 steps: Register via Empresa en Un Dia, Obtain RUT (Tax ID), Initiate Activities with SII, Obtain Municipal Business License, Open Corporate Bank Account, Register with Labor Authorities. The process takes approximately 36 days and costs around $100 USD.

What types of business entities can I register in Chile?

Chile offers 4 entity types: Corporation by Shares (SpA) (min capital: $0, foreign ownership: 100%); Limited Liability Company (SRL) (min capital: $0, foreign ownership: 100%); Stock Corporation (SA) (min capital: $0, foreign ownership: 100%); Branch of Foreign Company (min capital: $0, foreign ownership: 100%).

Can foreigners own a business in Chile?

Yes, foreigners can own businesses in Chile. Corporation by Shares (SpA) allows up to 100% foreign ownership. Limited Liability Company (SRL) allows up to 100% foreign ownership. Stock Corporation (SA) allows up to 100% foreign ownership. Branch of Foreign Company allows up to 100% foreign ownership.

What is the minimum wage in Chile?

The minimum wage in Chile is $530/month (USD). Average monthly wage is approximately $1200. Standard work week is 40 hours with 15 paid leave days per year.

How much does it cost to run a business in Chile?

Estimated monthly overhead for a small business (5-10 employees) in Chile is approximately $10000. Office rent averages $16/sqm/month. Skilled workers average $2000/month. Typical break-even: Tech 10 months, Services 8 months, Retail 14 months.

Countries ChileBusiness Guide

🇨🇱

Start a Business in Chile

Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis

~36 days

Setup Time

~$100

Setup Cost

27%

Corporate Tax

100%

Foreign Ownership

#59

Ease of Business

Entity Types

Entity	Min Capital	Foreign %	Liability	Min Shareholders	Best For
Corporation by Shares (SpA) Sociedad por Acciones	None	100%	Limited	1	Most popular for startups and foreign investors - single shareholder, no board required, very flexible
Limited Liability Company (SRL) Sociedad de Responsabilidad Limitada	None	100%	Limited	2	Traditional SME entity - requires at least 2 partners, max 50
Stock Corporation (SA) Sociedad Anonima	None	100%	Limited	2	Larger companies - open SA can list on Santiago Stock Exchange, closed SA for private companies
Branch of Foreign Company Agencia de Sociedad Extranjera	None	100%	Unlimited	0	Foreign companies operating directly in Chile - parent remains liable

Registration Steps

Use the Tu Empresa en Un Dia online portal for same-day SpA or SRL incorporation - fully digital process

0-1 days

Free

Ministry of Economy

Obtain RUT (Tax ID)

Receive Rol Unico Tributario automatically upon company registration through the online portal

0-1 days

Free

SII (Internal Revenue Service)

Initiate Activities with SII

Declare start of business activities (Inicio de Actividades) with the Internal Revenue Service online

0-1 days

Free

SII

Obtain Municipal Business License

Apply for Patente Municipal (business license) from the local municipality where the company operates

3-14 days

~$100

Local Municipality

Open Corporate Bank Account

Open a business account at a Chilean bank (BancoEstado, Banco de Chile, Santander)

3-14 days

Free

Commercial Bank

1-5 days

Free

Direccion del Trabajo

Total Estimated

36 days max$100

Tax Framework

Corporate Income Tax27%

27% under Semi-Integrated regime (most companies). 25% under Pro-SME regime for qualifying small businesses with gross income under 75,000 UF. R&D tax credit of 35% for certified projects.

IVA19%

Personal Income Tax0-40%

Capital Gains Tax27%

Dividend Withholding35%

Tax Treaties35 countries

Tax Incentive Zones

Zona Franca de Iquique (ZOFRI) and Zona Franca de Punta Arenas with duty and VAT exemptions. Arica special tax zone with CIT credits.

Labor Laws & Costs

$530/mo

Minimum Wage

$1200/mo

Average Wage

40 hrs/week

Work Hours

15 days/year

Paid Leave

4.3 weeks/year

Severance

4.11% of salary

Employer Social Security

17.6% of salary

Employee Social Security

Required

Foreign Worker Permit

Foreign Worker Quota: Foreign workers cannot exceed 15% of total workforce with at least 25 employees. Exceptions apply for technical specialists.

Visa & Immigration

Temporary Residence Visa

For business owners, investors, and professionals. Valid 1 year, renewable. Requires proof of business activity or employment.

6 weeks

Processing time

$150

Estimated cost

Investor Visa

Investor

For foreign investors establishing or acquiring a Chilean business. No minimum investment threshold. Evaluated on business viability.

Digital Nomad Visa

Remote Work

Launched 2023 for remote workers. Must earn from foreign sources. Valid 1 year, renewable once. Minimum income ~USD 1,500/month.

Work Permit Process: Employer or individual applies through the Department of Immigration (Extranjeria) online portal. Work authorization included in residency visa.

Business Environment

#59/190

Ease of Business Rank

4 days

Starting a Business

28.5 days

Registering Property

480 days

Enforcing Contracts

67/100

Corruption Perception

90%

Internet Penetration

CLP

Currency

UTC-3

Time Zone

GoodCould be betterHover a dot for the threshold and source. Sources: World Bank, Transparency International, ITU.

Spanish

Investment Zones & Provinces

Start-Up Chile

Tech Hub

Santiago

Incentives

Equity-free grants up to USD 100K1-year working visa for foundersMentorship and co-working spaceAccess to investor network

Key Sectors

TechnologySocial InnovationCleantechFintech

Zona Franca de Iquique (ZOFRI)

Free Zone

Iquique, Tarapaca Region

Incentives

0% customs duties0% VAT on internal transactionsCIT exemptions for zone companiesStrategic Pacific trade location

Key Sectors

Import/ExportAutomotiveElectronicsLogistics

40-50% lower than Santiago

Valparaiso Tech Corridor

Tech Hub

Valparaiso Region

Incentives

Growing startup communityUniversity talent pipeline (UTFSM, PUCV)Lower cost of living than SantiagoPort access for logistics

Key Sectors

SoftwareMaritime TechRenewable EnergyEdTech

25-30% lower than Santiago

Break-Even Analysis

Retail (months)

F&B (months)

Tech (months)

Manufacturing (months)

Services (months)

Typical Operating Costs in Chile

Per-person or per-unit costs. Multiply by your team size for total estimates.

Office Rent	$16	per sqm/month
Skilled Worker Salary	$2,000	per 1 worker/month
Unskilled Worker Salary	$600	per 1 worker/month
Electricity	$0.13	per kWh
Business Internet	$30	per 1 connection/month
Est. Monthly Overhead (5-10 staff)	$10,000	total/month

Sources: World Bank Open Data, ILO, Numbeo Cost of Living Index, local government publications. Salaries reflect market averages and may vary by city, industry, and experience level. Last updated 2025.

Break-Even Calculator

Total Investment (USD)

Monthly Revenue (USD)

Monthly Costs (USD)

Tax rate applied: 27% (corporate rate)

months to break even

$3,650

monthly net profit

87.6%

annual ROI

$190,000

total cost to break even

Break-even progressModerate recovery

Next Steps

Your Action Checklist

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Key Considerations for Foreign Investors

Tu Empresa en Un Dia allows free same-day online company incorporation - the fastest and cheapest in Latin America

Start-Up Chile is one of the world's top government-backed accelerators - equity-free grants up to USD 100K

Chile has the highest credit rating in Latin America (A/A-) and is known for macroeconomic stability

SpA entity is extremely flexible - single shareholder, no board required, no minimum capital

15% foreign worker cap for companies with 25+ employees - plan workforce composition carefully

Double taxation treaties with 35 countries including the US, UK, and most of the EU

Strong rule of law and independent judiciary - contracts are reliably enforced compared to regional peers

Last updated: 2025-Q4

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Start a Business in Chile

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors

Start a Business in Chile

Entity Types

Registration Steps

Tax Framework

Labor Laws & Costs

Visa & Immigration

Business Environment

Investment Zones & Provinces

Break-Even Analysis

Next Steps

Legal & Registration

Financial & Tax

Operational

Immigration & Visas

Key Considerations for Foreign Investors