bannarTop

GLOBAL INFO

Chile

COUNTRY:

Chile

QUESTION:

ANSWER:

1.      What are the main types of companies in your country?

·       Limited Liability Companies  (Sociedades de Responsabilidad Limitada, SRL)

·       Corporations (Sociedades Anónimas, SA)

·       Share company (Sociedad por Acciones, SpA)

2.      Which is the most preferred type of company by foreign investors?

·       Share company (Sociedad por Acciones, SpA)

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

·       No minimum capital requirements – but sufficient capital is needed for the company to be created.

·       The total capital must be issued and paid within five years.

4.      What are the basic rules of shareholders liability for company debts in this company?

·       Shareholder´s liability is limited to the amount of capital contributed unless otherwise agreed and specified in the deed.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

·       Ample flexibility, there are almost no restrictions in the establishment of a management structure.  In accordance with common practice, wholly-owned subsidiaries are usually managed by the parent company, who appoints one or more managers (natural persons).

·       At least one of the managers need to be Chilean or a foreigner with permanent residence in Chile, in order to be appointed to represent the company when dealing with the Internal Revenue Service (IRS)

6.      How long does the registration procedure of this company take?

·       The average time is less than two weeks.

7.      What are the main costs of formation of this company in local currency?

·       The cost of incorporation can vary between $80 and $230 USD (around $50,000 - $145,000 CLP). This does not include lawyer fees.

8.      What is the average attorney’s fee of the formation of this company in local currency?

·       Approximately $1,500 USD

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

·       Very few requirements.

·       Company changes (e.g. changes in bylaws), need to be registered in the public company registered and published in the Official Gazette.  Financial reports are private unless the company is a public corporation.

10.   What are the main auditor requirements?

·       Companies are required by law to keep the following:

-        accounting books, which must be stamped by the Internal Revenue Service (IRS)

-        Journal

-        General ledger

-        Inventory and balances book

-        Wages and salaries income tax-withholding ledger

-        Purchases and sales ledgers (VAT register)

-        Register of goods in stock

-        Register of retained taxable profits