BUSINESS ORGANIZATIONS IN CHILE
There are several structures in which companies may be organized to undertake activities in Chile. From non-profit organizations to stock corporations, Chilean law sets forth different applicable regimes according to the different needs.
Generally, a foreign company may freely select any of the following forms of organization:
- Branch of a Foreign Legal Entity
- Sociedad por Acciones (Simplified Corporation)
- Limited Liability Company
In the case of banks, insurance companies and fund managing companies (e.g., pension-fund, etc.), among others, the law sets out certain regulatory requirements to be fulfilled, i.e. prior authorization by the competent local authority.
As a general rule, no particular structure is mandatory to undertake business in Chile, save for certain specific businesses, e.g. banking services, insurance companies, management of funds, etc. Therefore, the various different considerations set out below must be carefully weighed to determine the most appropriate structure.