foreign branch chile

Steps to Set Up a Branch of a Foreign Company in Chile

The biggest advantage of a branch of foreign company in Chile is that it does not have to be incorporated
Form a company in Chile: The biggest advantage of a branch of a foreign company in Chile is that it does not have to be incorporated

In recent informative articles, we have shared valuable insights on registering a company in Chile and important considerations for establishing a business in Chile. Now, let’s delve into the essential steps for setting up a branch of a foreign company in Chile. Read on for a complete understanding of the procedures and requirements for expanding your company’s presence in this dynamic market.

Expanding operations by setting up a branch of a foreign company in Chile can offer strategic advantages in accessing local markets and taking advantage of the country’s business-friendly environment. By effectively navigating the regulatory landscape, foreign companies can establish themselves in Chile and take advantage of its growing economy. Read on to discover key insights and practical tips for success in this venture.

Chile has continued to grow as one of the most attractive commercial jurisdictions in Latin America. The South American powerhouse has a stable economy and a political environment welcomes foreign participation. Furthermore, Chile scores highly on the ease of doing business ranking published by the World Bank. However, as legislation regarding company formation differs from country to country, it might still be complicated to start a business in Chile.

Why Incorporate a Branch of a Foreign Company in Chile?

A branch of a foreign company is not a separate legal entity from its parent company, but it is the Chilean agency of the parent company. As a result, the company does not have autonomy and therefore it is not considered to be an incorporated entity in Chile. The main advantages of incorporating a branch of a foreign company in Chile is that the ‘parent company’ can provide guidance/vision and the ability to share company resources.

*Please note that the branch of a foreign company still falls under Chilean law.

Documents Required to Set Up a Branch of a Foreign Company in Chile?

To set up a branch of a foreign company, legalization and official translation of the following documentation of the foreign parent company are required:

company formation in chile
Form a company in Chile: A branch of a foreign company in Chile is one of the options if you want to start a business in the country
  • Articles of incorporation of the parent company.
  • The by-laws of the parent company.
  • Certificate of good-standing of the parent company
  • Power of Attorney given to the appointed agent who will manage the foreign branch.

On the same date of registration of these documents, the appointed agent must carry out a public deed containing the following:

  • The name and capital (amount and capital contribution terms) of the company.
  • The domicile and corporate purpose of the branch in Chile.
  • A statement and declaration that the foreign company understand Chilean legislation.

A summary of this public deed executed by the agent must be published in an official newspaper and registered with the Registry of Commerce within 60 days from the date when the public deed was carried out.

Obtain a Tax ID

A foreign branch will fall under local law when operating in Chile. Once it has been set up, the branch must obtain a tax ID to set up agreements and become commercially active like opening a bank account. It is of vital importance that the foreign branch is aware of its tax and accounting requirements while operating in Chile. 

Want to Register a Company in Chile?

Chile provides an attractive business environment for foreign investors looking to launch commercial operations. We at Biz Latin Hub have a team of local and expat professionals who can guide you through all the complexities that may arise when doing business abroad. Reach out to Craig here at Biz Latin Hub to see how we can support you in Chile. 

Watch this video to learn more about forming a company in Chile:

YouTube video
Branch of a Foreign Company in Chile: A video with key considerations about forming a company

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team Chile

Legal Team Chile

Legal Team Chile is the Biz Latin Hub leading experts on doing business in Chile The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Chile via our "contact us page".

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