If you intend to start a business in Chile, or do business in Chile, you will need knowledge about Chilean financial regulations.
Because non-compliance with financial regulations can result in legal inconveniences or financial penalties, potentially impacting your business and diminishing your company’s standings in the eyes of local authorities.
If you are interested in this, starting a business in ChileThis guide should be of considerable interest to you.
If you’re already doing business there or have questions about your future market entry, contact us todayLet’s talk about how we can help you.
Chilean market popular among investors
Chile is a popular destination for foreign investors who want to invest in the region. It is one of the most stable and developed nations in Latin America.
The country has experienced strong growth in recent years. Gross domestic product (GDP). increasing four-fold between 2002 and 2019Despite three brief downturns in the period, they remained strong.
That also saw gross national income (GNI) — a key indicator of general prosperity — more than triple, with Chile registered GNI of $14,990 per capita in 2019 placing it as a high-income nation by international standards(All figures in USD).
Despite its high-income status Chile still manages to be a competitive market for both investors and businesses. This can be seen using the BLH Payroll CalculatorCompare the estimated costs for workers
Chile is known for being a beacon of free trade and has built up a reputation. large portfolio of free trade agreements(FTAs) with other countries around the world. It is also a founding member the Pacific Alliance — a 10-year-old regional economic integrationInitiative that also includes Colombia and Mexico and has ambitions of expanding beyond the region.
All these factors make Chile a tempting prospect for investors. Investors will need to comply with Chile’s financial regulations in order to maximize their market opportunities.
Key responsibilities for financial regulatory compliance in Chile
Financial regulatory compliance in Chile can differ depending on the country. type of entity you haveThe following aspects of corporate compliance can be applied to everyone.
Holding an annual shareholders meetingCompliance in Chile is based on proper prior notification to shareholders. The minutes of ordinary and extraordinary shareholder meetings must be recorded before a notary public.
Proper circulationThis is generally done via a board meeting.
Initial filings or renewals of a company license commercialCompliance must also be completed each semester before the relevant local authority.
Submitting internal financial reports Balances and/or dividends to shareholders This requirement is often incorporated into company by-laws. It is also an essential compliance requirement that must always be met in a corporate secretarial services program.
Designation and coordination of external or internal auditors Another important element of compliance is the inclusion of it in the company bylaws.
Obtaining and updating the company’s shareholder book of letter must be undertaken by law in order to remain in full compliance with local norms.
Registering all relevant documents of shareholders or directors Before the commerce custodian/registry custodian Chile’s financial regulatory compliance also includes this component.
Obtained a corporate sealThe company signature acts as a seal and can be used to stamp official documents. It is an essential part of company compliance.
Key dates for financial regulatory compliance in Chile
Many of the above-mentioned aspects of financial regulatory compliance in Chile need to be done at specific times or during certain periods of the year. These dates are key to the effective execution of corporate secretarial service in Chile.
Commercial license renewals or payment must be completed within the first month of company incorporation, and twice per year thereafter — on January 31 and July 31.
Meeting of ordinary annual shareholdersThe date stated in the company statutes must be followed. If there is no such stipulation, the meeting should be held within four months of the financial calendar, which follows Chile’s calendar year.
Submission of consolidated financial statementWhere required, the amount can be adjusted to meet Chile’s financial regulatory compliance. However, it must be completed by December 31st each year.
Extraordinary shareholder meetingsWhen necessary, it can be done at a time that is mutually agreed to by the board and shareholders.
Board meetingsThey are not required to be held on a particular date but must be held at least twice per year.
Biz Latin Hub is here to help you with your financial regulatory compliance Chile
Biz Latin Hub has multilingual corporate support specialists who can help you with Chile’s financial regulatory compliance. With our comprehensive portfolio of back office solutions, including accounting & taxation, company formation, legal services, hiring & PEO, and visa processing, we can be your single point of contact for entering and doing business in Chile, or any of the other 17 markets around Latin America and the Caribbean where we have teams in place.
Contact us nowfor more information about how we can help you and your business
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