Chile lets any foreigner own 100% of a company without needing residency or a prior visa, and its digital incorporation platform makes the process genuinely close to free for the most popular structure. Here's what it takes to start a business in Chile in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- EIRL (Empresa Individual de Responsabilidad Limitada). Designed for individual entrepreneurs, limited liability.
- SpA (Sociedad por Acciones). The most popular structure among foreigners: one or more shareholders, free management structure, no minimum capital requirement for most business activities.
- SRL/LTDA (Sociedad de Responsabilidad Limitada). Suited to small and medium businesses with 2 to 50 members.
- SA (Sociedad Anónima). For larger businesses, requiring 2 or more shareholders and stricter governance.
2. Register your business
Chile's "Empresa en un Día" (formerly "Tu Empresa en un Día") digital platform, running since 2013, can complete a basic SpA setup in 24 to 48 hours for simple domestic cases, and the incorporation itself can be nearly free, you mainly pay for Official Gazette publication, around CLP 8,000 (under $10). For foreign-owned companies, the realistic end-to-end timeline runs 6 to 8 weeks once notarization, apostille requirements, bank KYC, and SII (tax authority) activation are factored in. Each foreign shareholder needs a Chilean RUT (tax ID) from the SII, obtained through a Chilean-resident legal representative, an appointed role rather than an ownership requirement, so you can hold and manage the company entirely from abroad using Power of Attorney.
3. Understand capital reporting rules
An SpA's initial capital must be fully subscribed and paid within 5 years of incorporation (3 years for an SA). Capital can be contributed in foreign currency, but any capital entry exceeding USD 10,000 must be reported to Chile's Central Bank through the formal foreign exchange market, in practice routed through a licensed commercial bank in Chile.
4. Check licenses and permits
Chile doesn't issue a single national business license. Every company needs a patente municipal (municipal business license) from its local municipality; certain regulated activities carry additional permits.
5. Understand Chilean taxes
Corporate profits are taxed under the First Category Tax at 27% on the general, partially-integrated regime. A temporary reduced 12.5% Pro-Pyme SME rate applies for fiscal years 2025 through 2027 under Law 21.755, rising to 15% from FY2028, a genuinely meaningful window for smaller companies to plan around. VAT (IVA) is 19% standard, filed monthly. Sending profits abroad triggers a 35% Additional Tax on repatriation, though corporate tax already paid is credited against it under Chile's integrated system. An R&D tax credit worth 35% of qualifying R&D investment is also available, capped at USD 1 million.
6. Stay compliant
Chilean compliance runs on a monthly rhythm from the SII declaration of start of activities onward: monthly IVA returns, plus employer pension (AFP) and health (Fonasa or Isapre) contributions once you hire staff. Chile has 37 double taxation treaties in force, including with the United States since January 2024.
Chile business costs at a glance
| Item | Cost |
|---|---|
| SpA minimum capital | None required |
| Digital SpA incorporation (Empresa en un Dia) | ~CLP 8,000 (~$10) publication fee |
| Corporate tax, standard (First Category Tax) | 27% |
| Corporate tax, Pro-Pyme SME rate (2025-2027) | 12.5% |
| VAT (IVA), standard rate | 19% |
| Profit repatriation (Additional Tax) | 35% (credited for CIT paid) |
Frequently asked questions
Can a foreigner own 100% of a company in Chile without residency?
Yes, no residency or prior visa is required to own a Chilean company.
How much does it cost to incorporate an SpA in Chile?
The incorporation itself can be nearly free through Empresa en un Dia. You mainly pay for Official Gazette publication, around CLP 8,000 (under $10).
What's the corporate tax rate in Chile?
27% standard (First Category Tax), with a temporary reduced 12.5% Pro-Pyme SME rate for fiscal years 2025 through 2027.
What's the VAT rate in Chile?
19% standard (IVA), filed monthly.
What happens when I send profits out of Chile?
A 35% Additional Tax applies to profit repatriation, though corporate tax already paid is credited against it under Chile's integrated system.
Fees and rates above come from the SII (Servicio de Impuestos Internos) and the Registro de Empresas y Sociedades as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Chile-qualified accountant or lawyer about your specific situation.