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Chile Investment and Commercial Law
|Types of companies in Chile|
|Chile Business, Corporate, and Commercial Law|
Types of companies in Chile:
I.E.R.L. This is essentially a hybrid company between a sole proprietorship and an LLC that has one and only one person. You gain the full benefits of corporation, but it is designed for small business. For a foreigner, this is the most difficult to obtain as it requires full legal residency inside the country or citizenship in Chile. The legal representative and partner must be the same person.
Limited Liability Company (LLC) This would be the best for incorporating when there are small or reasonable amount of partners. The advantages to an LLC is the decreased reporting requirements and simplicity of corporate structure. Often foreign companies choose this form of company in Chile when they wish to open things like sales offices or other forms of basic representation inside the country, or engage in import or export of products in Chile.
Sociedad Anónima in Chile (or simply S.A.) This is a full company with shares, partners, and all the privileges of a company in Chile. It also is the most complex in terms of organization, and costs to maintain in terms of complying with government and legal regulations. It also offers the greatest flexibility for growth in the future and / or change of scope of the sorts of activities.
In most cases in Chile any type of corporate structure can be modified in to another type of corporate structure at a later date, depending on how the initial articles of incorporation are drafted and what the shareholders or partners have agreed to at the time of incorporation. Please feel free to contact one of our specialist in private international law for a free consultation.