Bureaucratic and complicated procedures discourage those who want to start their own business. To combat this problem, the " Your Company in a Day" system was created in Chile , and at Hispanos Emprendedores we've analyzed it so you can decide if it's right for you. Learn about its advantages and disadvantages compared to the traditional system.
What is Your Company in a Day?
This system, in effect since 2013, consists of a simplified electronic registration process . Known as the Registry of Companies and Societies (RES), it allows businesses to be established, migrated, modified, divided, or dissolved through its website. (Although a notary's signature is required at the end of the process.)
Through the web, a legal person can be incorporated through a very simple procedure that, in addition, has the same legal validity as if you did it through the traditional system. The great advantage of this is that anyone with an internet connection can register.
The procedure to establish a company or society through this system is free. What you must bear in mind that to register companies in Chile through the RES you need an electronic signature. If you do not have it, you can do it through a notary public, paying the corresponding fee.
This business registration system was created in 2013 through Law No. 20.659. Since then it has been constantly reviewed and updated.
System Your Company in a Day vs. Traditional registration
If you are determined to start a business in Chile, you should know that there are two systems to register and start your business. Before choosing which one you are going to use, you have to understand what they consist of and what are the advantages and disadvantages of creating a company under both modalities.
The traditional regime is the oldest and requires a greater investment of time and money. To incorporate a company through this system, you must first pay a lawyer to write the deed. Then you have to validate this document before a public notary.
READ OUR MAGAZINE HERE
The company is then registered with the Real Estate Registrar and an extract of the deed is published in the Official Gazette. Then the company is registered with the Internal Revenue Service. This whole process takes about a month.
In contrast, with the "Company in a Day" service, this time is greatly reduced. The steps are much simpler. You just need to go to the RES website and register to create an account. Then, go to "Incorporate," select the type of company, log in to the system with your RUT (Chilean tax ID) and password, and fill out the corresponding forms.
From the same system, the information is sent to the SII so that they can assign the company RUT. Through the system you can carry out the entire process, including downloading the current certificates of your business.
Although you don't need a lawyer to draft the deeds with the RES, it's advisable to seek good advice to create the statutes, choose the right type of company, and understand the legal obligations.
Business in one day pros and cons
Advantages
- Savings in costs during the process and time in the registration period.
- You get the RUT of the company immediately.
- Anyone can carry out the process and fill out the incorporation forms.
- It is not necessary to register in the Real Estate Registry or publish in the Official Gazette.
- The initiation of activities can be done through the same platform.
- Allows migrating from the old system to the new one.
- It facilitates the modification of the company, sale of shares, annotation of meetings and sessions.
Disadvantages
- It is not yet possible to create all types of companies existing in Chile. So far it only allows the establishment of EIRL, Ltda., SpA, SA and SAGR
- By not having personalized advice you can make mistakes that will affect your business.
- Banks are very meticulous and demanding in serving these companies.
- You need to have an electronic signature, otherwise you have to go to the notary.
- As it is an electronic platform, errors such as a system crash, failures when recording data, among others, can occur.
Is this system convenient?
The answer is it depends and you will have to analyze your case well. That is why it is convenient that you seek advice, even if you are determined to use the RES. This way you will better understand the advantages and limitations of the system.
For a small company it may be convenient to carry out the process through the platform. But if the capital is very high, it may be preferable for a lawyer to write the deeds to make sure that you are protecting your assets well.
On the other hand, even if your company experiences problems on a first day because it's a new system, keep in mind that it's constantly being updated. These issues will be resolved, just as they have been so far.
Finally, the trend is to simplify the processes and facilitate the incorporation of companies without so much bureaucracy. This is the objective of the platform and it is an action that is not only being done in Chile but in many countries.
Analyze your options to determine if the Your Business in a Day system is right for you . Get advice to make the best decision.
If you need advice on the subject, write to info@hispanosemprendedores.com
