Start-up Chile- Tag Archives - Business News and Updates

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5 Challenges for US Companies Doing Business in Chile and How to Overcome them

by Legal Team Chile | May 20, 2020

Over the last decades, numerous US companies have successfully undertaken the challenge of doing business in Chile, a country that is known for having the best business expansion opportunities in Latin America. Last year, direct investment in Chile increased by US$11.928 million, and for the first half of 2020 the country registered a record figure of US$4.779 million. This encouraging panorama has historically and currently attracted investors from all over the US, expanding their business in the industry of mining, technology, and Venture Capital. Last year, direct investment in Chile increased by US$11.928 million, and for the first 2 months of 2020 the country registered a record figure of US$4.779 million. A paradigmatic example of recent US investment in Chile came in 2019 when Jeff Bezos - founder and CEO of the e-commerce company Amazon - invested millions of dollars in the Chilean start-up NOTCo, which successfully mimics the flavor and texture of certain foods using only vegetable-based ingredients. Although Chile’s dynamic and developed market has been in the scope for multiple US companies, executives should be aware of the challenges they may face to prosper in the country. In this article, we review the principal challenges for US companies doing business in Chile and how to overcome them. 5 Challenges for US companies doing business in Chile 1. Language US executives must not assume that everybody in Chile speaks English. Even though English is increasingly common and is taught in most schools to a large percentage of the population, US companies doing...

CEO and Seed Award Winner Amr Elghandour Discusses Entrepreneurship in Chile

by Team Latin America | Apr 16, 2020

Biz Latin Hub’s Maja Gaukstern had the privilege of connecting with Amr Elghandour, CEO and CTO of VoxEra. Amr speaks with Biz Latin Hub about his experience expanding into Chile, and offers insights on the entrepreneurial nature of the South American country. Amr’s tech company VoxEra was nominated one of the best 3 start-ups in Egypt, and received the award from the Egyptian Minister of Communication and Information Technology in 2018. Amr's tech company VoxEra was nominated one of the best 3 in Egypt. He received the award from the minister of Minister of Communication and Information Technology in person. Soon after Amr won the Seed Award from Start-up Chile, a public startup accelerator created by the Chilean government for high-potential entrepreneurs, such as Amr. Now Amr lives in the heart of the city and continues to grow his business, while enjoying the life as an entrepreneur in the vibrant city of Santiago de Chile. Congratulations on winning the Seed award in 2019! What does your company do? We make a device for travelers. It allows them to use their sim card when they travel abroad to send and receive calls and texts without paying international roaming fees. How did you find out about Start-up Chile, and what motivated you to enter? We met David from Startup Chile in Oman during the MIT Enterprise Forum Arab Startup Competition as our entry shortlisted. David was giving a presentation about Start-up Chile. We had a chat with him later and he advised us to apply. After that we did our research about the...

Entrepreneurship in Chile Favors Innovation and New Business

by Legal Team Chile | Jan 21, 2020

Entrepreneurship in Chile continues to develop, supported by government initiatives. According to the Global Entrepreneur Monitor (GEM), Chile is the most entrepreneurial country in the world, ahead of the US and India and alongside Guatemala. Many factors such as start-up funding, education, innovation system, and entrepreneurship environment contributed to Chile’s number one ranking. With a skilled workforce, a thriving entrepreneurship environment, solid macroeconomic fundamentals, and government support, Chile is the destination of choice for innovative businesses seeking to incorporate a company in Latin America. Overview of entrepreneurship in Chile Entrepreneurship in Chile is on the rise. According to GEM 2018-2019 data, entrepreneurial activities grew from 13% in 2008 to 25.1% in 2018. In addition, Chile has a platform called “Create a Company in One Day” which has accounted for 386,310 new businesses between 2013-2018, with an average of 351 new business per day. Government measures, such as Create a Company in One Day are an example of Chile’s focus on driving entrepreneurship in the country. Although not necessarily all companies survive in the market, the outstanding number of companies created over the past years are testament to the supportive environment for entrepreneurship in Chile. Skilled workforce Entrepreneurship in Chile is favored by the availability of a skilled workforce ready to contribute to innovation. In fact, at the 2018 international exam that measures students' knowledge in math, science, and reading, PISA (Programme for...

Business-2-Business Opportunities in Chile

by Accounting Team Chile | Nov 16, 2019

Supported by its abundance in natural resources, strong infrastructure, business-friendly government and well-built macroeconomic system, Chile’s GDP has grown uninhibited over the last 15 years. This has enabled Chile to fully assume its image as a stable and prosperous Latin American country attracting many foreign investors to explore its diverse business opportunities. Business Opportunities in Chile in the B2B sector Chile’s vibrant and diverse range of industries is largely supported by its business-2-business sector. Chile’s traditional sectors such as mining have provided the country with the bedrock on which its economy is built. New B2B industries, however, are quickly taking hold in the forms of fintech, e-commerce, and biotechnology. Will these be the next generation of business-supporting markets? Chile’s Mining sector Chile’s mining industry is a strong representation of its past and present economic success. The industry has bolstered not only its own manufacturing sector but also the manufacturing of many other countries throughout the world. The country boasts 22% of the world's copper reserves, 7% of gold, and 54% of lithium reserves. Between 1974 and 2012, the sector received nearly US$30 billion in foreign investment. This sector has supported more businesses than any other, providing materials to countless construction and manufacturing industries all around the globe. Though a traditional sector, Chile’s mining is far from exhausted. As the demand for lithium increases with the rise in battery-powered vehicles, Chile’s mining sector sharpen their...

4 Key Tips to Set Up a Business in Chile

by Legal Team Chile | Nov 13, 2019

Successive business-friendly governments in Chile has allowed it to become one of the most stable and prosperous countries in Latin America. Its economy has experienced strong compound annual growth rates over recent years, demonstrated by its GDP increase of 4% in 2018. Experts believe this growth is likely to continue in 2019 and 2020, with successive increases of 3.4% and 3.2% alike, making setting up a business in Chile an accommodating experience. Learn how to set up a business in Chile as a foreign investor A large portion of the nation’s success has been down to Chile’s welcoming approach to foreign investment, allowing anyone from around the world to incorporate a business there. In fact, Chile is the second-highest recipient of FDI in Latin America. According to the 2019 World Investment Report, FDI inflows into Chile in 2018 reached US$ 7.2 billion, an increase of 4.4% from the previous year. Chile is blessed with a strong economy, an educated workforce, expertise in maritime trade as well as the easiest company incorporation system in Latin America. 1. Partner with a local legal representative The process to set up a business in Chile is the most straightforward in Latin America. However, it must be done with the help of an authorized legal representative. In Chile, a legal representative is the responsible legal authority of the company. The responsibilities, obligations, and rights of the company are all assumed by them, underlining the importance of the role. Choosing the right legal representative is crucial for the success of the company. When...

Female Entrepreneurship in Chile

by Legal Team Chile | Aug 12, 2018

In the last decade, the number of women seeking to start projects and form legal entities in Chile and begin commercial operations has increased significantly. One of the first studies on "Support for female entrepreneurship in Alliance of the Pacific" reveals that there are 51 programs aimed at strengthening and promoting female entrepreneurship in the countries of The Alliance. Female Entrepreneurship in Chile - Fighting Stereotypes Although the study conducted by the Alliance of the Pacific Strategic Observatory indicates that the rate of female entrepreneurship has increased, some changes must take place to keep this trend going. Communities must come together to fight against sexist stereotypes, reduce the fear of risk, and improve access to credit for women to facilitate the process. These factors combined will create an environment which encourages the participation of women in entrepreneurship. "…women entrepreneurs in Latin America and Chile have historically been invisible for having informal enterprises or micro-enterprises, mistakenly thinking they only have a minor impact in the contribution to the economy...Although women represent 40% of the economically active population in Latin America, their entrepreneurial participation does not exceed 15%". - Fernanda Vicente, President of the Women of the Pacific. While female entrepreneurship by Latin America women in the region is far from where it should be, many foreign companies managed by women have decided to establish operations in the region to take advantage all that the country has to offer; notably...

How to Open a Corporate / Company Bank Account in Chile?

by Legal Team Chile | Jun 25, 2018

While legislation, economic/social factors and public policies have an impact when deciding to form a company in a foreign country, knowledge of the local banking system should not be underestimated. For both national and foreigners, it is essential to have at least a basic understanding of the procedures and processes necessary to open corporate/company bank accounts. In this article, our accounting team will provide useful information on how to open a corporate or company account when forming a company in Chile. Some Key Points - Opening a Corporate Bank Account in Chile Although all banks account for commercial customers, the requirements for opening a corporate bank account vary from bank to bank. All companies, being owned by Chilean or of foreign owners, must first have an R.U.T. (Tax Chilean Number) in order to request the opening of a company/corporate account in a bank. Some banks have an 'International Desk' which can be useful for companies with foreign owners. Types of Corporate/Company Banks Accounts in Chile Cuenta Vista (Account at Sight) This bank account is very easy to obtain. Banks will allow this type of account to be opened without demanding a great number of requirements and/or documentation. The package of services offered by banks when opening a “Cuenta Vista” is very limited. It generally only empowers its holder to operate a debit card and make online transfers. Unfortunately, with this account, you have no access to checks, credit cards etc. In addition to the above mentioned, generally, the 'Cuenta Vista' accounts operate in Chilean...