1. How can a foreign company function in Chile?

A foreign company may operate in Chile in three main ways:
1. - through its legal representative,
2. - setting up a branch,
3.- constituting a subsidiary company.

2. Are there any essential procedures to function in Chile?

Indeed, to operate in Chile, it is necessary to designate a legal representative of the company with residence in Chile, a representative who will be responsible for its affairs in national territory.
Notwithstanding the foregoing, the formation of the company may also be initiated by a foreign corporate representative with sufficient power; however, you must designate a legal representative in Chile in any way for the company to function.

3. Where can you designate your Legal Representative?

If you come to Chile, you can personally designate a Legal Representative at the notary. To do this, he must prove his identity through a passport or identity document from the country of origin, as appropriate.
To designate Legal Representative outside of Chile, you must do so before the pertinent authorities or ministers of faith in your country, and the document must be legalized before the Chilean Consul or the competent authorities if the country does not have one. These officials will authenticate said document and prove the identities of the people who attend said act by means of the passport or identity document of the country of origin.

4. What requirements must the representation meet?

- Fulfillment of formalities of constitution of the deed,

- Legal capacity of the representative to enter into acts and contracts on behalf of another,

- Residence or domicile in Chile of the legal representative.

5. How are the documents legalized?

All documents that have been granted before foreign Notaries or other Ministers of Faith and that have been authenticated before the Chilean Consul in the granting country, before other pertinent Chilean authorities or before foreign authorities that fulfill the role of the Chilean ones, must be endorsed before the Ministry of Foreign Affairs of Chile so that they are valid. Remember that this is very important to prove the authenticity and legal validity of the document in Chile and so that it can act validly and smoothly.  

6. What documents do I need to have in order to create a company through an agent in Chile?

- Authentic and legalized copy of the bylaws of the company that will be the owner of the one created in Chile, if so.

- Authentic copy of the instrument where the representation of the attorney and the powers to create companies are recorded, respectively, as the case may be.

- The respective translations.

In addition, it is necessary that the mandate make reference to the data of the records of the bylaws of the owner foreign company and that the representative who signs the delegation by the company has the necessary

7. What minimum clauses must the mandate contain?

It is necessary that the power or mandate contain at least the following faculties:

- Start of economic activities,

- Registration in records and Obtaining Unique Tax Role,

- Carry out procedures and affidavits before the Internal Revenue Service,

- To be notified by the SII,

- Powers to incorporate a company, administration or to appoint managers, among other general and special powers.

- It must also indicate that the right to be notified by the SII will only be revoked by express communication from the person who granted it.

8. What is a business agency in Chile?

They are companies designed to provide support to other establishments in their commercial activities.

9.- Where is the foreign business agency regulated?

In Chile, the foreign business agency is regulated in articles 447 and following of the Commercial Code.

10.How does foreign investment enter Chile?

There are two regimes for the entry of foreign capital into Chile, the first is regulated and described in Chapter XIV of the Compendium of International Exchange Regulations of the Central Bank and the other contemplated in DL 600. This last norm obliges the investor to subscribe a contract with the State called "Contrato-Ley", binding on both parties and which cannot be modified; however, the entry of foreign capital into Chile in accordance with DL 600 is voluntary, since the foreign investor will always have the option of bringing capital into the country, in accordance with the provisions of Chapter XIV of the Central Bank.

11.- What does the statute of Decree Law 600 involve?

Decree Law 600 provides a certain guarantee in favour of foreign investors, in the sense that what has been agreed between them and the State will not be altered later, being able to agree on a certain tax invariability regime, thus granting access to markets and national economic sectors without making a distinction between national and foreign investment. Foreign investment in accordance with this statute can be made by foreign natural and legal persons, and nationals with residence and domicile abroad, with respect to the entry of foreign currency for more than US$5 Million and US$2.5 in the cases that are credits, technologies or physical goods.
Foreign capital can enter in different ways, in freely convertible foreign currency, physical goods, technologies that can be capitalized or in credits. Once the capital has entered the country, the investor may repatriate it after one year from this date, without prejudice to the fact that the profits may be transferred at any time once the taxes have been paid or the withholdings have been made. These operations require the certification of the Vice President of the Foreign Investment Committee.

12. How the is the Contrato-Ley Signated?

Foreign investment must be authorized by the Foreign Investment Committee and once done, the respective resolution is issued, and the contract can be entered into once the conditions and terms contained therein are met.
This contract is entered into by public deed, signed between the investor and the State, the latter represented by the President of the Foreign Investment Committee when the authorization requires agreement of the committee or by the Executive Vice President of this entity in other cases.

13. How do capital enter according to Chapter XIV of the Central Bank?

In these cases, the entry of foreign capital is carried out with prior authorization from the Central Bank of Chile, which can authorize the entry of capital and credit from abroad, informed, which will be converted into national currency in the formal exchange market.
This statute operates in all cases in which the investment does not benefit from DL 600, as long as it refers to credit operations, deposits, capital contributions, whose amount is greater than US$ 10,000 or its equivalent in another currency.

14. What is the Foreign Investment Committee?

It is the body that authorizes the entry of foreign capital on behalf of the State of Chile, as well as the provisions and terms of the respective contracts.