Chile

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Operating a Business in Chile

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sociedad de Responsabilidad Limitada (LTDA) is a Private Limited Company. No minimum capital.	Minimum 2 partners. Maximum 50 partners. Liability is limited to the amount contributed.	Notarize articles of incorporation and record them in a public deed: USD 250. Publish deed (SA) in the official gazette (Diario Oficial): USD 150. Register at the commercial registry of the state in which the entity is formed: USD 15 + 0.2% of capital. Print receipts/invoices in the authorized printing company: USD 43 per book.
Sociedad Anonima (SA) is a Public Limited Company. NB: Can be Public or private. No minimum capital. 1/3 of the capital must be paid at the creation of the company and the remainder within three years.	Minimum 2 partners. Liability is limited to the amount contributed.	Notarize articles of incorporation and record them in a public deed: USD 250. Publish deed (SA) in the official gazette (Diario Oficial): USD 150. Register at the commercial registry of the state in which the entity is formed: USD 15 + 0.2% of capital. Print receipts/invoices in the authorized printing company: USD 43 per book.
Sociedad en Commandita is a limited partnership. No minimum capital.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited, joint and several. Liability of sleeping partners is limited to the amount contributed.	Notarize articles of incorporation and record them in a public deed: USD 250. Publish deed (SA) in the official gazette (Diario Oficial): USD 150. Register at the commercial registry of the state in which the entity is formed: USD 15 + 0.2% of capital. Print receipts/invoices in the authorized printing company: USD 43 per book.

Business setup procedures: Depending on the qualification of a business in Chile, foreign investment is regulated by:
- The proceedings of decree N^o 600 states"The status of Foreign Investor" is set by DLF 523 by the Minister for the Economy, Development and Reconstruction for so-called productive investments.
- The proceedings of Chapter 14 of the Regulation of International Banking Changes of the Central Bank which regulates investments which are purely financial.
- The proceedings of Chapter 19 of the Regulation of International Banking Changes of the Central Bank allowing a foreign investor, creator of a public or private business in Chile to finance a future investment.
The competent organization: All businesses from foreign capital must be registered with the Chilean committee for foreign investments

Working conditions

Legal weekly duration: 48 hours
Retirement age: 65 years
Working contracts: Legal dispositions govern work contracts, collective conventions and individual negotiation complement them.
The formality of the work contract is very rigid whereas starting conditions and licensing constraints are more flexible.

Cost of labor

Minimum wage: 135,000 pesos (USD255)
Average wage: Average monthly gross earnings in Argentina is USD 615.
Social contributions: Social security contributions paid by employers: 0.9% - 3.4%
Social security contributions paid by employees: 20%

Social partners

Social dialogue and involvement of social partners: Since 1992 the labour code has recognised the existence of organisations representing the workers, the most important of which is the Central Union of Workers (CUT). The CUT is affiliated to the international confederation of syndicates.
Unions: Central Workers Union CUT
Unionization rate: About 15%.
Labor regulation bodies: Ministry of Labor and Social Security

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