Chile is a stable, high-income economy in South America, known for its strong institutional framework, trade openness, and strategic access to the Pacific. Rich in natural resources, with well-developed finance, mining, agriculture, and increasingly tech and renewable energy sectors. The legal, financial, and regulatory environment is relatively transparent, making Chile an attractive destination for foreign investment and regional expansion.
Unlock growth opportunities in Chile with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Chile’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Chile, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Chile’s employment and tax laws, helping you scale confidently and compliantly.
Similar to a public joint stock company, an S.A. ideal for larger operations. Additionally, this type of a legal entity setup can be publicly listed and is subject to enhanced disclosure rules.
SRL is a private limited liability company suitable for small to medium-sized businesses. In this gtype of entity the ownership is limited and transfer of shares is more restrictive.
This kind of a legal entity setup is simplified joint stock company which is increasingly popular for startups or and foreign investors for its flexibility and ease of ownership transfer.
A branch of a foreign parent company operating in Chile. A branch must comply with Chilean regulations and tax obligations but doesn’t have independent legal personality.
A Sociedad Anónima requires a board of directors (at least 3 for open corporations). However, no legal residency is mandated unless publicly listed.
An SRL has no residency requirements, and a local legal representative is typically needed for tax and banking purposes.
There is no residency requirements in a SpA and a local legal representative is typically needed for tax and banking purposes.
A branch office must appoint a Chilean resident as a local agent with legal authority.
Bank account setup in Chile follows stringent procedures due to comprehensive regulatory requirements:
Bank Account Setup in Chile: Process and Requirements
Before Incorporation:
After Incorporation:
Note:
Note: A corporate bank account in Chile can only be opened after completing company incorporation and obtaining a tax ID (RUT). In-person verification by the legal representative is generally required, and account opening may take 2–4 weeks depending on the bank’s due diligence process.
Required documents include certificate of incorporation and Articles of Association, extract from the commercial registry, board resolution authorizing account opening, identification and documents of all directors, shareholders, and beneficial owners, business plan and proof of business activities in Chile, proof of registered office address, and tax file number (RUT) from the Chilean Tax Authority (SII).
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. Banking and account activation timelines vary by bank and the completeness of documentation; allow several business days to a few weeks in practice.
Employment in Chile is primarily governed by:
Employment contracts must be written in Spanish.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Permanent Employment
The standard form of employment where employer and employee do not set a fixed end date. Permanent employees are entitled to severance, social benefits, statutory leave, and termination rights. An employment contract may convert automatically to indefinite status if a fixed‑term contract is renewed more than once, or if the employee continues working after its expiration with the employer’s knowledge.
Fixed-Term Employment
These contracts have a specified end date and are typically used for short‑term, project, or seasonal work. Fixed‑term contracts typically last up to one year and can be renewed once under that duration of restriction. For individuals with professional or technical qualifications from higher education, the fixed‑term can extend up to two years. If renewed beyond the allowed limit or continued post expiry, such contracts may automatically convert into permanent contracts.
Part-Time Employment
Under part‑time contracts, employees work fewer hours than full‑time employees. The benefits and entitlements are proportional to the hours worked, but part‑time workers are still eligible for social insurance, leave, and other rights under the Labor Code. The law limits some benefits in proportion, for example remuneration and severance, depending on the ratio of part‑time hours to full‑time hours.
Temporary Employment
Temporary employment is when employment is through temporary staffing agencies, subject to specific regulations. Temporary workers have rights to equal treatment regarding basic working conditions after certain periods.
Chile does not impose a statutory maximum probationary period in all cases. When used, probationary terms must be clearly stated in the employment contract, and practices vary by employer and sector.
According to the Law No. 21,561, effective April 2023, the statutory ordinary workweek has been reduced from 45 hours to 40 hours, to be phased in over five years beginning April 26, 2024.
The standard workday cannot exceed 10 hours.
Overtime
Overtime work is limited to two hours per day.
Notice periods in Chile vary based on length of service and method of payment:
Severance pay, for employees dismissed without cause or for company needs, is one month’s salary for each year of service, capped at 11 years and a maximum of 90 UF per month. If the required 30-day notice is not given, the employee is entitled to one month’s pay in lieu of notice.
Foreign nationals can live and work in Chile by securing appropriate work authorization. The process varies significantly based on nationality and visa type.
Work Visa & Permit Options in Chile
B-1 Work Visa (Visa Sujeta a Contrato)
For foreign nationals with a confirmed job offer from a Chilean employer.
Temporary Residence Visa (A-1)
Ideal for foreign investors, entrepreneurs, and individuals with economic or professional ties to Chile.
Expert Worker Visa (Visa de Trabajo para Profesionales Altamente Calificados)
Streamlined route for highly skilled professionals in priority sectors.
Investor Visa
For individuals making substantial investments in Chilean businesses or real estate.
Student-to-Work Transition
For international graduates from Chilean universities seeking to remain for employment.
Key Requirements:
Chile offers fast-track visa routes for qualified professionals in tech, science, and innovation sectors to strengthen its knowledge-based economy.
Permanent employees are entitled to 15 working days of paid annual leave, increasing with seniority.
Employees are entitled to paid sick leave after 3 months of employment:
Female employees are entitled to 18 weeks of maternity leave:
Male employees are entitled to 5 days of paternity leave.
The following statutory holidays are observed in Chile:
The most common pay frequency is monthly.
Payslips are mandatory and must include detailed breakdown of gross salary, deductions, taxes, and net pay in Spanish and translations may be necessary for foreign employees).
There is no mandatory bonus, however there is a customary year-end bonus called Aguinaldo.
Chile has a comprehensive social insurance system with mandatory contributions covering pension, health, unemployment insurance, work-related injury, and disability benefits for employees.
Accounting standards in Chile follow Chilean Generally Accepted Accounting Principles (Chilein GAAP) for most companies, while public companies must use International Financial Reporting Standards (IFRS).
Companies in Chile must file annual financial statements and tax returns with the Internal Revenue Service (SII), including balance sheet, income statement, and supporting documentation.
Statutory audit is required for companies that exceed two of the following thresholds:
Public companies, banks, insurance companies, and companies with public debentures have mandatory audit requirements regardless of size.
Audits must be conducted by qualified auditors certified by the Institute of Certified Public Accountants in Chile.
The standard corporate tax rates are:
Chile levies VAT at a standard rate of 19%.
Companies must file annual tax returns (Form 22) and financial statements with the SII. Reporting deadlines can vary; private companies often have deadlines around April for prior year filings. Public companies may face earlier or additional submission obligations.
Penalties for late filing and tax non-compliance can include monetary fines and criminal penalties for serious breaches.
Chile has well-established transfer pricing regulations, aligned with OECD guidelines, applicable to all transactions between related parties.
Key aspects include:
Chile enforces BEPS-compliant CbC reporting for multinational enterprises.
Chile follows OECD transfer pricing documentation standards:
Master File
Local File
Chile’s data privacy framework is currently governed by Law No. 19.628 on the Protection of Private Life and is undergoing modernization to align with GDPR standards.
Chile’s AML framework is governed by Law No. 19.913, enforced by the Unidad de Análisis Financiero (UAF), and follows FATF recommendations.
Obligated entities: Banks and financial institutions, insurance and securities firms, money remitters, credit card issuers, real estate agents, lawyers, and notaries (for certain transactions), casinos and dealers in precious metals and stones.
Key requirements:
Penalties: Significant administrative fines up to CLP 500 million (USD 550,000), plus criminal penalties including imprisonment up to 10 years of imprisonment for serious violations, and revocation of business licenses for repeated or egregious violations.
Reasons you should setup legal entity in Chile:
Cerity Global ensures your business expansion in Chile is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Chile business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Chile.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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