How Can I Expand my Business?

The procedure to register your business in Chile  is really simple; 6 steps completed within 4 days, on average.

The cost of starting a business in Chile: Registration fee is 2.7% of the estimated income of the business during its first year of operation. The fee is not paid in subsequent years.

These registration fee is below of the line with the OECD average.

Once interest gathers all information needed, the procedure to legally build a commercial facility (warehouse, offices, etc.) is 12 steps. Average completion time is 195 days.

The procedure itself is similar to other countries, while completion time is slow.

Money invested during the process is equivalent to 1.2% of the commercial real estate value. This is an low-cost process compared to other countries.

Construction standards in Chile are higher than average. 

The process to get electricity connection is 5 steps and 43 days of time spent. In comparison to other countries is a fast method.

Money invest through procedure is 48% of income per capita. In a monthly bill for commercial warehouse the tariff is 10 US cents per kilowatt-hour. Which means the procedure is low-cost but the tariff is expensive in comparison to other countries.

In comparison to other countries Chile has a low-step but time-consuming procedure for property registration. They are 6 steps that can be done in 28.5 days.

The invest needed in this procedure is 1.1% of the property value. Value added tax and capital gain tax are excluded. Chile is above the average cost for this operation.

Lender/borrowed confidence is low in Chile, which enjoys a rating 4 out 12.

Rules affecting the reach of accessible information and its quality are measured through the Depth Credit Information index, from 0 to 8; 8 being the best one.

Chile´s rate is 7, hence this information is reachable and above the average.

The new company in Chile must pay 7 contributions per year.

Time invested in collecting information, computing tax payable, separating tax accounting books, completing tax return, filling with agencies, arranging payment or withholding throughout the year is 296 hours.

This is a lot of spent time compared to other regions in the world.

Companies in Chile make contributions of total tax for about 34% of profit.

Time and cost to obtain, prepare and submit documents compliance to export in Chile is 54 hours and $50USD. This process is not as much as efficient than other countries.

Time and cost to obtain, prepare and submit documents to import in Chile is 36 hours and $50USD. Compared to other countries, Chile is about the average.

Time and cost to customs clearance and inspection for export products is 60 hours and $290USD.
This is above the average in compare to other countries.

Time and cost to customs clearance and inspection for import products is 54 hours and $290 USD. Compared to other countries, companies will spend more time and money than average to import products.

In many situations a company bankruptcy will continue operating until unable to do so or business assets are sold. In Chile there is a tendency for companies to continue operating after filing for bankruptcy.

A standard workday is 9 hours a day 6 days a week. Overtime is paid as +50% of hourly pay and there are no restrictions working at night or weekend. If the employee works on its  weekly rest day, this must be paid as +50% of hourly pay.

• Vacations are 15 paid leave days.

Termination in Chile

The employment may terminate at any time if this is mutual agreement, death of the employee, expiry of the fixed term or the completion of the work.

Resignation of the employee can happen with 30 days of prior notification.  If the employment termination is based on the general grounds, such as changes economic conditions or downsizing of the company, a severance compensation equivalent to one month will be awarded to the employee.