Why Choose to do Business in Chile?
Chile is a steady and thriving country that has consistently ranked high in political and economic international indices relevant to international business, including an A+ rating from risk agency Fitch.
The country continues to employ policies that promote international trade and is a member of the Pacific Alliance, the Rio Group, Mercosur, APEC, and UNASUR. With a business environment that promotes foreign investment in practically every sector and a growing startup ecosystem, it is no wonder that Chile is a favorite destination for entrepreneurs.
According to the Doing Business study published by the World Bank, Chile is the 57th easiest country to do business in. Opening a company in Chile takes 7 procedures, roughly 5.5 days, costs approximately 0.70% of income per capita, and requires zero paid-in minimum capital even though a small one is recommended to avoid future problems with banks. The study also shows that Chile has the highest possible score on the shareholder rights index, it only takes 43 days to get connected to the electric grid in Santiago, and the cost to register a transfer property is only 1% of the property’s value.
Foreign investors in Chile may access all productive activities freely, especially in the food, infrastructure, tourism, energy, and mining industries; there are some restrictions in certain sectors such as in the maritime cabotage, media, and air transportation sectors. The mining sector in Chile for instance, is full of opportunities for foreigners. According to the Invest Chile website, these are the best areas within the mining industry for international investments:
- Scale-up of technology in continuous-operation consumables.
- Transition from open-pit to underground operation.
- Integrated autonomous operations.
- Solutions to minimize energy consumption in milling and hydrometallurgical processes.
- Technologies to control impurities in concentrate.
- Technologies for efficient treatment of tailings.
- Modernization of smelters and refineries.
- Exploitation of rare earth elements.
- Exploration projects.
However, someone investing in the mining sector in Chile will need to secure a diversity of permits and official authorizations. Therefore, it is always better to consult with a lawyer familiarized with the mining sector in Chile before deciding to invest.
Another reason to do business in Chile is the incentives they offer for both local and foreign investors. The government does not subsidize foreign investment, but it does offer incentives when the business will help remote regions such as Tarapacá, Aysen, Arica and Pariancota, Magallanes, Palena and Chiloé. They also offer incentives for micro or small and medium sized enterprises involved in technology. For instance, Chile conceived StartUp Chile, a 40 million USD program in which entrepreneurs receive grants of 14,000 USD, 30,000 USD or 80,000 USD – depending on the size of their business – and a work visa to accelerate or develop their startups in Chile.
Expats should note that work visas are required for Chile. There are different kinds of visas (working holiday, temporary residency, startup visa, etc.) and anyone looking to relocate to Chile should contact a visa or immigration lawyer to find the best option for them. At Biz Latin Hub we can help you get a visa, incorporate a company and more in Chile. The group is a market leader in helping both local and foreign companies successfully do business in Latin America, by providing a full suite of back office services, including multi-lingual:
- Market Entry Support
- Accounting, Financial & Taxation Services
- Legal and Immigration Services
- Company Formations
- Security and Investigation Services
- Recruitment Service
The company is owned and managed by an experienced team of local and expatriate professionals, dedicated to assisting our clients in navigating their way through the complexities of the Latin American business environment.
With offices in Colombia, Peru, Mexico, Chile, Argentina, and Panama, we have an unparalleled reach across the region and are well positioned to help companies to enter and operate within the Latin American market-place, by providing multi-lingual services that are Reliable, Economic and Tailored to meet the clients’ needs. For more information please contact us at [email protected]