Doing Business in Chile Makes a Lot of Sense
The country is steady and definitely thriving and they ranking in politics and economics is an indication that international businesses should invest here. In addition, they have a rating of A+ from a risk agency called Fitch. With the risk rating and consistent growth of the country, those who are thinking of doing business in Chile should not procrastinate and go for it.
Chile’s International Trade and Investment
The country still employs policies promoting international trade. Chile is part of the Rio Group, Pacific Alliance, APEC, Mercosur, and UNASUR. In addition, the country is open to businesses that showcase foreign investment in almost all sectors together with an improving ecosystem. This is why entrepreneurs find Chile to be their favourite destination.
Based on the study known as Doing Business that World Bank has published, Chile is number 57 when it comes to ease of doing business in the country. There are 7 procedures to take when opening a company in Chile, about 5 ½ days probably costs about 0.70% of the income per capita. Moreover, it does not require any paid-in minimum capital even if it only takes a little amount to prevent future issues with banks. It is also shown in the study that Chile achieved the highest score possible on the rights index of shareholders. Connecting to the electric grid in Santiago only requires 43 days for it to finish, and transferring property costs only 1% of the total property value.
More About Investing in Chile
The foreign investments that go to Chile are allowed to freely access any productive activity, especially with food, tourism, infrastructure, mining, and energy industries. Certain sectors have restriction policies and these are media, air transportation, and maritime sectors. For instance, Chile’s mining sector opened a lot of opportunities for foreign investors. Based on the website about investing in Chile, the following are the recommended areas belonging to the mining industries for foreign investment:
- The continuous-operation and technology scale-up consumables
- Transition happening from the open-pit to operations underground
- Combined autonomous operations
- The solutions are to lessen milling energy consumption and processes of hydrometallurgical
- Technologies used to manipulate concentrate impurities
- The technologies for achieving efficient tailings treatment
- Refineries and smelters being modernized
- Exploiting rare elements of the Earth
- Projects of exploration
Although, a person who invests in Chile’s mining sector would have to secure the right permits and authorizations. Therefore, consulting with a lawyer should always be a practice to become familiar with Chile’s mining sector before investing.
The Incentives Foreign Investors Receive When They Do Business in Chile
One good reason to invest in Chile are the incentives they offer for investors both local and foreign. Foreign investment does not get subsidized by the government but offers incentives if the businesses are helpful in promoting Chiloe, Magallanes, Palena, Arica, Aysen and Tarapaca regions. In addition, they offer incentives to small and medium technological enterprises. For example, StartUp Chile was started by Chile, which is a program amounting to $40 million. This program gives grants to entrepreneurs. The amounts are $14,000, $30,000, or $80,000 depending on how big the business is. In addition, they are given work visas to help them in the acceleration and start-ups of their businesses in Chile.
Expats should take note that Chile requires a work a visa. The kind of visa given will depend on the reason for wanting to enter Chile. To make the visa process simple, anyone who wants to relocate to Chile should get in touch with an immigration or visa lawyer to recommend what’s best for them.
If you want to have a business in Chile, do not hesitate to call the right people. Then, gather enough information about the requirements and processes you should undergo. You can contact 3E Accounting for assistance.