Hello everyone! I am very excited for our trip to Chile, and look forward to getting to know everyone better. I have read through an article about Chile online, and will summarize some of the key takeaways below.
Chile has one of the most stable, open, and competitive economies in Latin America. Sustained economic growth and social progress, coupled with governmental changes designed to attract foreign direct investment have placed Chile among the best emerging economies worldwide. Still, some of the main challenges that businesses encounter involve navigating the bureaucratic and regulatory environment. For these reasons, having local help is crucial for businesses to succeed.
Chile is ranked 32nd in the world by The World Bank and International Finance Corporation for ease of starting a business. There are many regulatory and bureaucratic challenges to face when starting up. These includes notarized articles of incorporation, a registration certificate, a tax registration number and a 'patents municipal' working license, and also registering with the appropriate authorities.
Dealing with construction permits, getting electricity, and registering property are tedious yet important tasks in Chile. Obtaining construction permits can take a long time because businesses must go through 15 requirements, many of which are carried out by disparate governing bodies and firms. When getting electricity, business will most likely work with La Compania Chilena de Electricidad; procedures involve initial documentation sent to the firm before an external inspection is carried out and connection is made. Lastly, registering property in Chile takes much less time than elsewhere in Latin America and the Caribbean, but businesses must still request property titles for the past 10 years, the 'Certificado de Vigencia', and certificate of encumbrance from the registry in order to register a property; they must also pay land tax, and sign the public deed and obtain a Property Certificate and a Mortgages and Ownership Limitations Certificate.
Another challenge for businesses in Chile involves paying taxes. In total, there are six taxes that must be paid each year, and each step can be a painstaking process. For example, employment taxes and value added tax each take about 124 hours of the company's time.
Trading across borders is a rather cheap procedure in Chile, but it can take a long time to complete. There are 15 steps to take when exporting goods and 12 when importing.
The last challenge that I will discuss in regards to doing business in Chile is about the culture. Establishing trust and connecting on a personal level is crucial to successful business relationships in Chile. Initial visits to the country should always be done to build a rapport and create such relationships. In Chile, the relationship takes priority over business matters from the start, and companies should be aware of cultural procedures before pursuing business in the country.
http://www.tmf-group.com/en/media-centre/resources/top-challenges/the-americas/chile