At Hispanos Emprendedores, we provide a summary of the legal obligations of businesses in Chile . If you've set your sights on establishing a business in this country, you should be aware of the regulations that every company must comply with. Below, we offer more information on this topic.
Know the legal responsibilities before undertaking
In recent years it has positioned itself as one of the best countries to undertake in Latin America. Partly thanks to the ease of registering a business, as well as a stable economy.
Starting a business is a simple process, even for foreign entrepreneurs. It can be done online and, in addition, there is a wide range of resources and incentives to support entrepreneurs.
There are many other reasons why it is among the chosen countries to invest. For example, the infrastructure it has, which gives it a great advantage when it comes to the transport of merchandise. It is also characterized by low operating costs and better tax advantages compared to other countries in the region.
But before opening your business in this market, you must be aware of your obligations and responsibilities. It's essential to understand the legal framework to avoid any problems arising from non-compliance. For example, you need to know precisely the requirements for registering different types of businesses in Chile , understand your tax obligations, and be able to distinguish between the various types of contracts.
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If you're unsure which regulations you need to comply with, seek guidance from business organizations. This will also be helpful if you're looking to reinvent your business.
On the other hand, an experienced legal representative will also help you meet all the requirements. In this way, you will avoid delays and problems that could harm the company in the future.
Legal obligations of companies in Chile
In this sense, we list the main obligations that your company will have in Chile. Apart from these, you must verify what other regulations you must comply with in order to have everything in order during your operations.
Initiation of activities and registration of RUT
Any legal entity or not that starts commercial economic activities must notify the Internal Revenue Service (SII) during the first two months.
This procedure is known as Starting Activities and can be done online. Legal entities can only start activities in the first category.
When declaring the initiation of activities, the Unique Tax Role (RUT) is also obtained, which is the number that will identify the company as a taxpayer. It is mandatory when it comes to Individual Limited Liability Companies (EIRL), Limited Liability Companies, Closed Limited Companies and Stock Companies.
Register in the Commercial Registry
As part of the process of creating a company in Chile , it must be registered in the Commercial Registry. This is done at the Real Estate Registrar's office corresponding to the declared address.
After the incorporation, which takes between 3 and 7 business days, it must be published in the Official Gazette.
Comply with the payment of taxes
Legal entities have tax obligations to comply with. The main ones are Income Tax, Value Added Tax, Stamp Duty and Customs Law.
Apart from these, according to the industry to which it is dedicated, the company may be obliged to pay other taxes. For example, foreign trade, tobacco, alcoholic beverages, etc.
It is necessary to have someone who is in charge of keeping the accounting books and advising on tax matters. In this way it will be clear which taxes correspond according to the type of company.
Formalize employment contracts
Another of the legal obligations of companies in Chile has to do with employment contracts. These can be through direct negotiation with the employee or by collective agreement.
They must be framed in one of the four types of contracts that are recognized in the country. These are: indefinite, piecework, by tasks and professional services.
In addition, workers must be enrolled in occupational accident insurance.
Check the registrations and licenses you need
All companies are required to obtain the corresponding certifications and licenses according to the type of activity they carry out. It can be difficult to find all the permits to which they must apply, so it is advisable to seek advice.
Some of these permits and certifications will be required to obtain the municipal license. Among these we can mention:
- Certificate of previous information.
- Municipal Zoning Certificate.
- Sanitary authorization.
- Health report.
- Industrial classification.
- Generation, storage and final disposal of solid industrial waste.
Obtain the municipal license
The municipal license constitutes the definitive authorization for your company to operate in the location you have chosen. It can be commercial or industrial, depending on the type of business you are going to run.
To obtain a municipal business license, you must possess all the corresponding permits and licenses. These are part of the legal obligations of businesses in Chile. If you need advice on starting your business and promoting it in this market, contact us.
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