Chile is situated along the western seaboard of South America, and it's famous for its long coastline and unusual shape. It is considered one of the best countries in the region to do business. An estimated one-seventh of the economically active population is employed in manufacturing, which accounts for about one-sixth of the gross domestic product. In this article, we will explain the easiest way to establish your sole proprietorship in this country.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietor in Chile
In Chile, any natural person who carries out a legal commercial activity is considered a micro or small company (Mipyme). It is called Empresario Individual (Individual or Unipersonal Company), because it is constituted by a single person. It is the most basic and simple type of business that exists in Chile, according to the Internal Revenue Service (Servicio de Impuestos Internos - SII).
As the only founder of a company, you are its sole owner, and you support the business with all your personal assets. You are the person legally responsible for all obligations and duties.
As an Individual Company, you need to meet these characteristics:
- You have no partners
- Taxes as First Category based on income
- Your liability is unlimited
How to register Empresario Individual in Chile
There are two ways to do the registration:
- Go to SII website, enter RUT e Inicio de actividades in the menu. First, you will need to obtain a RUT number (taxpayer ID number). Then choose the Start of Activities option, and fill out form 4415.
- You can also carry out the procedure physically at the local Service office. You will fill out the same form, but you will have an SII agent's assistance in case of any doubts or queries.
The following laws regulate a sole proprietorship in Chile: