why choose to do business in chile?
TRANSCRIPT
Why Choose to do Business in Chile?
Written by: Allan Schulder , Biz Latin Hub Group
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