Expand Business in Chile
Global Upside helps businesses expand into Chile by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Chile’s laws and regulations.
The hiring and incorporation processes in Chile are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Chile. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
The economy of Chile is dominated by foreign trade which includes international economic and technological corporations. Companies such as Microsoft, Yahoo!, and IBM have their major operations here. Chile’s exports of wood, minerals, seafood, wine, and fruits drive its GDP growth.
- Chile ranks as the 43rd largest economy in the world in terms of nominal GDP.
- Chile ranks as the 4th largest economy in South America.
- Chile is the world’s largest exporter of copper.
- Chile ranks 33 in the world’s best countries for business.
Branch of a foreign legal entity (Agencia) is an establishment that has no minimum or maximum obligation for investors of the parent company. The parent company is ruled by foreign laws and is liable for the liabilities of the branch.
A corporation (Sociedad Anónima/ S.A.) is a type of legal entity set up that needs a minimum of two investors and the liability is restricted to the amount of their capital contributions.
A limited liability company (Sociedad de Responsabilidad Limitada/ SRL) needs two to 50 shareholders and their liabilities are limited to the amount of their capital contributions.
A simplified corporation (Sociedad por Acciones/ SpA) is a kind of establishment that requires one or more investors. The liabilities of the investors are restricted to the amount of their capital contributions.
It takes approximately two months to establish a legal entity set up in Chile.
As per the Chilean employment law, a written contract must be provided by an employer, within 15 days of the employee’s joining date.
Below are the terms that need to be included in Chile’s employment contract:
- Date and place of enactment
- Date of birth of the employee
- Nationality of the employee
- Date of commencement of the job
- Job title and description
- Salary and payroll cycle
- Working hours and shift timings
- Duration of the contract
Chile has approved the International Financial Reporting Standards, IFRS for all its public companies and financial establishments.
According to the Constitution of the Republic of Chile, Art. 19 N° 4, an individual is given basic rights of data privacy. Additionally, due to a revision in 2018, it incorporates the security of personal information. Any individual who, because of a discretionary or unlawful act or a breach, undergoes a danger, privation, or disturbance to this right may book a Constitutional Protective Action.
Anti-Bribery & Anti-Corruption Law
The Chilean Criminal Code governs the bribery of public officials (cohecho), under Articles 248 to 251 ter.
Bribery of Public Officials:
i) Imprisonment for up to 3 years
ii) A penalty of up to 3 times the amount of benefits received
iii) Removal from holding a position in the organization
i) Suspension of the establishment
ii) Prohibition of carrying out any commercial activities
iii) Partial or full loss of financial benefits
Bribery of Private Officials:
Unlike other jurisdictions, the Chilean criminal law does not consider a criminal offense depiction concerning benefits allowed to private sector business partners taking into account the contractual negotiations. Thus, such transaction remains unpunished, currently from the perspective of the Chilean criminal law. However, bribery in the private sector could be managed later on according to its Article 21.