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How to form a Sociedad Limitada

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Establishment of a national company with limited liability 


<typohead type="1">1.-       Formation of a Chilean limited liability company: </typohead>


<typohead type="2">Minimum Capital                                                   There is no minimum capital to incorporate the Company.</typohead>



Name of Company to include either the name of one or more of the partners or a reference of the business scope of the Company. Compulsory is to add the abbreviation Limited (Limitada)

-          Domicile

-          Place of management

-          Purpose of the Company: Any legal purpose. Some purposes need the prior approval of the authorities.

Legal Existence Together with the execution of its deed of incorporation, subject to the publication of an abstract in the Official Gazette and the registration of the same with the Registry of Commerce.


Further compulsory registration and publication. An abstract of the public deed of incorporation of the Company must be published in the Official Gazette and registered with the Registry of Commerce.

Liability:           Limited to the amount of money contributed to its capital by its partners or to such other greater amount agreed in the articles of incorporation.

Articles of Incorporation Standard Form for limited liability, containing clauses required by law.

Number of Partners                                              Not less than 2.


Date of Payment of capital Pursuant the articles of incorporation.

Management The Company may be managed by one or more of the partners, through attorneys-in-fact duly authorized and exceptionally by a board of directors.

Power of Representation of the Administrator. The Administrator will have the powers of attorney set forth in the articles of incorporation. Usually the administrator has broad powers of attorney to act on behalf of the Company.


Period Necessary for Incorporation Between 10 and 20 days from the filing of the complete documents.


<typohead type="3">            2.-        Procedure and Costs:                                               </typohead>

(i) Powers of Attorney granted by the foreign partners:  The partners of the Company to be incorporated must grant a power of attorney to incorporate the Company and for the obtention of tax payer number. These documents must be granted before a notary public of the jurisdiction where the powers of attorney are granted. The signature of the notary public must be authorized by the corresponding officer of your country. Finally it must be legalized up to the pertinent Chilean consul, and then they must be executed in Spanish.

In <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Chile, the powers of attorney must be filed with a notary public. The cost of this filing and their respective copies is approx. US$70.

            (ii) Public Deed of Incorporation of the Company: Once the powers of attorney are fully legalized in Chile, the attorneys-in-fact may then sign the public deed of incorporation. The cost of this public deed is US$70 plus a 1% of the capital of the Company with a maximum of US$320.

            (iii) Publication and registration of an abstract and filing with the notary public: Once the public deed of incorporation of the Company has been granted, an abstract of the same must be published in the Official Gazette. We can estimate that such cost is approx. between  US$100 and US$200.  Likewise, such abstract must be registered in the Registry of Commerce. The cost of such registration is US$6 plus a 0,2% of the capital of the Company, with a maximum of approx. US$445. Finally, the filing with a Notary Public of copy of the publication and of the registration amounts to US$30, approx..

            (iv) Tax Payer Number:   In order to develop its business, the Company must obtain the respective tax payer number (RUT)

            (v) Municipal License: It is required to pay a municipal license which amount is between a 0.25% and the 0.5% of the capital of the Company.

            (vi) Foreign Investment: In the case that the capital of the Company is brought into Chile through one of the mechanisms described below, it will be necessary to file with a notary public the by-laws or the articles of incorporation of the foreign partners which cost amounts to US$125. In the case that the foreign investor execute a public deed of foreign investment agreement, there will be a cost of US$330, approx..

All the aforementioned costs do not include the obtention of a current account in a commercial bank. Also, we point that  aforementioned cost are approximated.

3.-            Capital Registrations Requirements:

There are two mechanisms in Chile to register foreign capital investments and to bring foreign funds into Chile:


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