Business Setup in Santiago (2026)

Good to know

Good to Know

You do not need a Chilean business partner or shareholder to incorporate — 100% foreign ownership is standard — but you do need a Chilean-resident person to serve as your Legal Representative before the tax authority (SII), and this role is often filled by a lawyer or corporate-services provider for a fee if you don't have a trusted local contact.
Getting a temporary tax ID (RUT) as a foreign investor can be done in a couple of days via power of attorney, but plan for the fuller incorporation process (notarization, Official Gazette publication, SII activation, bank onboarding) to realistically take 6 to 8 weeks, not the '1 day' the portal's name implies.
Budget time and effort for the corporate bank account separately — it's usually the slowest step, requires your Chilean Legal Representative to appear in person, and banks apply their own KYC scrutiny to foreign-owned entities beyond what's needed just to legally register the company.
A foreign remote worker can start invoicing legally in Chile purely as an individual (boleta de honorarios) without ever forming a company — you just need a RUT, not necessarily a registered business.
If you bill a foreign company (your home-country employer or client) rather than a Chilean one, that foreign payer cannot withhold Chilean tax for you — you're responsible for calculating and paying the monthly provisional tax yourself using a special generic RUT (44.444.446-0) reserved for foreign payers.
The tax withheld/advanced on individual boletas de honorarios is on a scheduled increase (15.25% from 2026, rising toward 17% by 2028), so budget for a growing bite out of gross invoices over the next couple of years if you stay in freelancer status.
The SpA is the go-to legal structure for foreign-owned companies here because it offers limited liability with simpler governance than a traditional corporation, and can be incorporated in as little as a day through the online 'Empresa en un Día' system.
Chile's headline 27% corporate rate is not the whole story for a foreign owner — how much of that is creditable against the 35% dividend withholding tax depends heavily on whether your home country has a double tax treaty in force with Chile.
A broader tax reform bill was still working through Congress as of mid-2026 that could gradually lower the general corporate rate to 23% by 2029 — worth rechecking closer to when you'd actually be paying, since it wasn't law yet.

Corporate Tax

Pending Reform Caveat: A tax reform bill submitted to Congress in April 2026 proposes gradually cutting the general corporate rate from 27% to 23% by 2029 and moving to a fully integrated system by 2030, but as of mid-2026 this is still a bill working through Congress, not enacted law, and its final shape may change.

General Regime Pis

Rate: 27% First Category (corporate income) tax on accrued and perceived income
Detail: Under the general tax regime a company is subject to 27% corporate tax on its accrued and perceived income, and taxpayers under this regime must carry full accounting records in Chile for tax purposes.
Description: The standard 'partially integrated' regime applies to larger companies.

SME Regime Pro Pyme

Rate: Under the SME tax regime, a company is subject to a transitory 12.5% corporate tax on its perceived income, with that rate applying for financial years 2026 and 2027 and increasing to 15% for 2028.
Description: A reduced, temporary rate applies to small and medium companies (Pro Pyme, Article 14 regime) that meet revenue thresholds.
Note On Permanence: A separate 2026 political agreement reached alongside a broader tax reform bill would permanently fix the Pro Pyme rate at 12.5% rather than letting it rise, though this depends on the reform bill's final passage.

Dividend Withholding For Foreign Shareholders

Headline Rate: Dividends distributed by Chilean companies to non-resident shareholders are subject to a 35% withholding tax (WHT), with the company paying the dividend obligated to withhold and declare that tax.
Credit Mechanics: A credit for corporate tax already paid at the company level can be applied against that 35% withholding, but how much credit is allowed depends on the company's tax regime and the shareholder's country of residence.
Non Treaty Scenario: In a general-regime, non-tax-treaty scenario, the overall combined Chilean tax burden (corporate tax plus withholding) works out to 44.45%.
Treaty Or SME Scenario: Foreign shareholders resident in a country with a double tax treaty (DTT) with Chile in force are entitled to a full credit for corporate tax paid, bringing the total combined burden down to the 35% withholding rate itself; the same full-credit treatment applies for shareholders of a company under the SME regime.
US Investors Note: A double tax treaty between Chile and the United States entered into force in stages between February 2024 and January 2024, so US-resident shareholders can generally access the full-credit treatment described above.

Freelancer Vs Company

Company Route

Setup Paths: Incorporation can go through the streamlined 'Empresa en un Día' (Company in a Day) online public registry process, or through a traditional notarized public deed drafted by a lawyer.
Common Vehicles: The most common entity types are the SpA (Sociedad por Acciones), EIRL (single-owner limited liability), Ltda (limited liability partnership), and SA (corporation).
VAT On Invoices: A company invoicing for non-exempt services must charge 19%-style VAT on its facturas, which affects pricing to clients, but in exchange the company can claim a VAT credit on its own taxable purchases — something a boleta-issuing individual cannot do.
Registration Steps: Once incorporated, the company still needs a company RUT, must complete 'inicio de actividades' with the SII, choose a tax regime, and enable itself as an electronic invoice/receipt issuer before billing clients.
When It Makes Sense: Forming a company becomes the practical choice once clients require a formal factura, the founder wants to separate business liability from personal assets, plans to hire employees, seeks outside investment, or expects revenue to scale beyond what a simple boleta setup can comfortably handle.
Tax Regime Choice For The Company: A newly formed small company typically chooses between Pro Pyme General (company pays corporate tax on profits, owners are taxed separately when they withdraw profits or receive dividends) and Pro Pyme Transparente (the company itself doesn't pay corporate tax; profits are attributed directly to the individual partners for their personal tax return).
Why Spa Is Popular With Foreigners: The SpA is generally the preferred option for foreign investors because it combines limited liability with flexible ownership and management, making it structurally simpler than a traditional SA.

Freelancer Route Boleta De Honorarios

Withholding Rate Trend: That withholding/PPM percentage is on a legislated gradual increase: it rose to 15.25% of the gross amount from 1 January 2026, and is scheduled to keep climbing to 17% by 2028.
Who Its For: Individuals (personas naturales) providing services without a formally constituted company issue boletas de honorarios (electronic professional-fee receipts) instead of company invoices.
VAT Treatment: A boleta de honorarios issued by an individual is, as a general rule, still exempt from VAT.
Practical Upside: This route is simpler and cheaper to start with, requires no notarized incorporation, and suits a solo remote worker or consultant billing modest amounts.
Practical Downside: There's no liability separation from personal assets, the freelancer alone carries the compliance burden of monthly PPM filings, and clients requiring a formal invoice (factura) with VAT generally cannot be served this way.
Paying Foreign Clients: Foreigners can and do issue boletas de honorarios to non-Chilean clients: because the foreign payer has no Chilean RUT and legally cannot withhold or remit tax to the SII, the SII requires use of a generic placeholder RUT (44.444.446-0) plus the foreign party's name, and the Chilean freelancer must self-declare and pay the same PPM percentage monthly via Formulario 29 rather than having it withheld for them.
Withholding When Paid By A Chilean Client: When a Chilean-registered payer receives the boleta, that payer normally withholds a provisional tax (PPM) percentage of the gross fee and remits it to the SII on the freelancer's behalf.

Incorporation Process And Requirements

Overview: Chile allows 100% foreign ownership of a Chilean company with no requirement for a local partner or shareholder. Foreign nationals have the same legal right as Chileans to incorporate and own a business, but every company must appoint a Legal Representative who is a resident of Chile — this is non-negotiable regardless of entity type. That role can be filled by a hired professional, a lawyer, or a corporate-services provider if the founder has no local contact.
Minimum Capital: There is no statutory minimum share capital for an SpA, SRL, or SA — a company can technically be formed with a nominal (even CLP 1) contribution, though banks will assess whether capitalization is realistic for the stated business activity during account opening.
Remote Incorporation: It is possible to incorporate without traveling to Chile: a power of attorney notarized/apostilled at a Chilean consulate abroad lets a local representative complete registration through the online portal. However, opening the corporate bank account still requires the Chilean-resident Legal Representative to be physically present at a bank branch.
Local Partner Mandate: None for ownership. Legal Representative residency requirement only.

Official Links

Tax Authority Sii: https://www.sii.cl
Company Registry Portal: https://www.tuempresaenundia.cl
Investment Promotion Agency: https://investchile.gob.cl

Realistic Timeline

Bottleneck: Corporate bank account opening is the most common source of delay — banks conduct their own KYC/source-of-funds review of foreign-owned entities, and this cannot be avoided even when the rest of incorporation is done remotely by power of attorney.
Online Registration Only: The 'Empresa en un Día' / RES portal can register a simple single-founder SpA in as little as 24 hours to a couple of days.
End To End For A Foreign Owned Company: Realistically 6 to 8 weeks (some sources cite 1 to 2 months) once notarization, apostille of foreign documents, SII tax (RUT and start-of-activities) registration, and corporate bank account opening are factored in.

Common Entity Types

SpA (Sociedad Por Acciones)
Description
The default choice for most foreign founders: limited liability, single shareholder permitted, no statutory minimum capital, and flexible governance. Can be formed online in one day for a single founder, though the notarization requirement is waived only if the founder has a valid Chilean electronic ID/RUT.
SRL / Ltda (Sociedad De Responsabilidad Limitada)
Description
Traditional limited liability company requiring 2 to 50 partners; popular for SMEs and family-style businesses.
SA (Sociedad Anónima)
Description
Requires at least 2 shareholders, has more complex governance (board of directors, potential audits); used for larger or capital-raising ventures.
EIRL (Empresa Individual De Responsabilidad Limitada)
Description
Sole-proprietorship-style limited liability structure for one individual; restricted to certain activities and generally not recommended for foreign founders.
Branch / Agency of a Foreign Company
Description
Incorporated in Chile but domiciled abroad through the parent company; the parent remains fully liable for branch activities. Can be useful where a double-taxation treaty makes this structure more tax-efficient.

Step By Step Process

Obtain a temporary foreign-investor tax ID (RUT Provisorio) from the SII. Non-residents do this via a power of attorney to a Chilean legal representative or attorney; documentation (passport copies, shareholder details, country of tax residence) must be apostilled and no more than 60 days old.
Choose the entity type and draft the incorporation documents (Escritura de Constitución / deed of incorporation), setting out company name, purpose, registered address, capital, and shareholder details.
Execute the deed — either before a Chilean notary (traditional route) or, for a single-founder SpA, via the online 'Tu Empresa en un Día' / Registro de Empresas y Sociedades (RES) portal, which waives in-person notarization but still requires a valid Chilean RUT or electronic identity.
Register the deed extract with the Commercial Registry (Registro de Comercio) within 60 days of signing.
Publish the deed extract in the Official Gazette (Diario Oficial) within 60 days of registration — this publication is free if the company's capital is under UF 5,000 (roughly USD 200,000).
Obtain the company's own RUT (as distinct from the individual founder's temporary RUT) from the SII.
File the 'Inicio de Actividades' (start of activities, Form 4415) with the SII, declaring tax regime and activity codes, which determine VAT obligations and invoicing rights.
Register a fixed physical address in Chile for tax/legal correspondence — a virtual office or coworking address is generally acceptable, but P.O. boxes are not, and banks may scrutinize virtual addresses during account opening.
Obtain the municipal business license (patente municipal) from the municipality corresponding to the company's registered address.
Open a corporate bank account — this requires the Legal Representative to appear in person at a Chilean bank branch for KYC verification, even if the rest of the incorporation was completed remotely via power of attorney.

Local Partner Or Sponsor Requirement

Details: No local co-owner or sponsor is legally required, and foreign shareholders can hold 100% of the equity. However, the company must designate a Chilean-resident Legal Representative to interact with the Servicio de Impuestos Internos (SII, the tax authority), receive official notifications, and sign on the company's behalf. Without this appointment it is not possible to open a bank account or complete registration. Foreigners who do not already have a temporary tax ID (RUT) must also grant a power of attorney to a person in Chile to obtain one on their behalf from the SII; this POA can be signed abroad if apostilled and physically sent to Chile.
Local Shareholder Required: No
Local Legal Representative Required: Yes

Scope Note

Covers local business/corporate tax implications and the freelancer-vs-company decision for a foreign-owned operation in Santiago.

Filing And Registration Obligations

VAT: VAT (IVA) registration is mandatory for businesses making taxable supplies, with no minimum revenue threshold for registration.
Registration: Companies must register with the SII and obtain a RUT (Rol Único Tributario) number before commencing operations, including a formal 'inicio de actividades' (start of activities) declaration.
Annual Return: Companies are required to file their annual corporate income tax return (Formulario 22) by April 30th of the year following the tax year, with payment due at the same time.
Tax Authority: Servicio de Impuestos Internos (SII), Chile's national tax authority.
Accounting Records: Companies under the general regime must keep full statutory accounting records in Chile; SME/Pro Pyme regimes allow simplified accounting.
Monthly Advance Payments: Monthly provisional payments (Pagos Provisionales Mensuales, PPM) are required throughout the tax year as advance payments toward the annual tax liability; for SMEs under the reduced regime these monthly PPM amounts are halved for fiscal years 2025–2027.

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

1.tuempresaenundia.cl

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Data last updated July 2026 · Verify anything important.