Chile, a country nestled between the Andes Mountains and the Pacific Ocean, has emerged as a prominent business hub in South America. With its stable political environment, favorable trade policies, and strategic location, Chile offers exciting opportunities for entrepreneurs looking to expand their businesses. Whether you are an existing business owner or someone looking to start a new venture, this guide will provide you with everything you need to know about the business sector in Chile.
Economic Landscape
Chile has a strong and stable economy, which is evident from its continuous growth over the past few decades. The country ranks high in the ease of doing business index and has a transparent and accountable government. Chile has also made significant progress in reducing poverty levels and diversifying its economy. The country’s primary sectors include mining, agriculture, fishing, and forestry. Apart from this, Chile has also gained popularity in technology, tourism, and renewable energy.
Setting up a Business
The process of setting up a business in Chile is straightforward and transparent. Entrepreneurs can register their businesses online through the Chilean Government portal. You can also seek the support of local legal and accounting firms to guide you through the process. To register a company in Chile, you would need to obtain a tax identification number, register with the social security system, and obtain a business license.
Investment Opportunities
Chile offers various investment opportunities for entrepreneurs. The government provides several tax incentives and subsidies for businesses to promote foreign investment and entrepreneurship. Many foreign companies have already invested in Chile, and their presence has encouraged the development of the country’s infrastructure, including airports, highways, and ports. Apart from this, Chile has an extensive network of free trade agreements, making it easy for businesses to import and export goods and services.
Hiring Skilled Labor
Chile has a well-educated workforce, with a literacy rate of over 96%. The country’s universities and technical schools offer quality education in engineering, IT, and other areas. Employers seeking specialized skills can benefit from this and recruit from the local talent pool. The Chilean government also offers tax incentives, including lower rates on social security contributions for employers who hire workers under 24 years old.
Business Culture
Chilean business culture values punctuality, formality, and personal relationships. Business meetings are often scheduled far in advance, and punctuality is essential. Chileans prefer to establish personal relationships before discussing business, so small talk is prevalent at the beginning of meetings. Spanish is the primary language spoken in Chile, but many business professionals are fluent in English.
Here 5 biggest business in Chile
SOCIEDAD QUIMICA Y MINERA DE CHILE
Sociedad Química y Minera de Chile engaged in the production and distribution of specialty plant nutrition solutions, lithium and derivatives, iodine, and industrial chemicals. SQM operates in various markets, including agriculture, lithium batteries, pharmaceuticals, and industrial applications.
The company’s products are widely used in the agriculture industry to improve crop yields and quality. SQM is a significant global supplier of lithium, a key component in the production of batteries for electric vehicles and renewable energy storage. The company also produces iodine and its derivatives, which are essential in various industries, such as healthcare, electronics, and textiles.
ENEL AMERICAS SA
Enel Americas is one of the largest private sector electricity generation and distribution companies in Latin America. Enel Americas operates in several countries, including Chile, Brazil, Colombia, Peru, and Argentina.
The company is primarily involved in the generation, transmission, and distribution of electricity. Enel Americas has a diverse portfolio of power plants, including hydroelectric, thermal, wind, and solar facilities. It supplies electricity to residential, commercial, and industrial customers, contributing to the development and growth of the regions it serves.
BANCO DE CHILE
Banco de Chile provides a comprehensive range of financial services to individuals, businesses, and institutions. The bank offers various banking products and services, including savings accounts, current accounts, loans, mortgages, credit cards, investment services, and corporate banking solutions.
Banco de Chile has a strong presence in the Chilean banking sector and operates a wide network of branches and ATMs throughout the country. It is known for its stability, reliability, and customer-centric approach. The bank aims to meet the diverse financial needs of its customers and provides personalized services and innovative solutions to enhance their banking experience.
EMPRESAS COPEC SA
Empresas Copec engaged in various sectors, including energy, forestry, and fuel distribution. The company operates through its subsidiaries and is involved in activities such as oil refining, fuel distribution, forestry and wood products, fishing, and natural gas distribution.
Copec is a significant player in the energy industry and owns one of the largest oil refineries in Chile. The company operates a network of gas stations across the country, providing fuel and related services to consumers and businesses. In addition, Copec is involved in the forestry sector, with operations in timber production, pulp, and paper manufacturing.
BANCO SANTANDER-CHILE
Santander Chile is a subsidiary of Banco Santander, one of the largest banking groups in the world. Santander Chile offers a wide range of financial services to individuals, businesses, and corporations.
The bank provides various banking products and services, including savings accounts, current accounts, loans, mortgages, credit cards, investment solutions, and corporate banking services. Santander Chile operates through a network of branches and ATMs across the country, serving a diverse customer base.
Below some companies in chile that you should know
- Hotels And Resorts And Cruise Lines : Enjoy Sa.
- Electric Utilities : Enel Americas Sa, Enel Chile Sa, Colbun S.a, Enel Generacion Chile S.a, Minera Valparaiso, Aes Andes S.a, Electrica Pehuenche Sa, Engie Energia Chile Sa, Compania General De Electricidad Sa, Enel Distribucion Chile Sa, Electrica De Magallanes Sa.
- Alcoholic Beverages : Compania Cervecerias Unidas Sa, Vina Concha Y Toro, Cristalerias De Chile Sa.
- Steel : Cap Sa, Cintac Sa.
- Specialty Stores : Quinenco Sa, Cencosud Sa.
- Financial Conglomerates : Antarchile Sa, Pampa Calichera Sociedad De Inversi, Norte Grande Sa, Sociedad Inversiones Oro Blanco Sa, Potasios De Chile Sa, Inversiones Tricahue, Quilicura Sa, Adm Americana De I.
- Marine Shipping : Compania Sud Americana De Vapores, Sociedad Matriz Saam Sa, Grupo Empresas Navieras Sa.
- Alternative Power Generation : Invercap Sa.
- Major Telecommunications : Almendral Sa.
- Investment Trusts And Mutual Funds : Nitratos De Chile Sa.
- Engineering And Construction : Besalco Sa, Ingevec Sa.
- Hospital And Nursing Management : Instituto De Diagnostico Sa, Clinica Las Condes.
- Agricultural Commodities And Milling : Hortifrut S.a, Blumar Sa, Salmones Camanchaca Sa.
- Wholesale Distributors : Empresas Gasco Sa.
- Home Furnishings : Companias Cic Sa.
- Water Utilities : Aguas Andinas S.a, Inversiones Aguas Metropolitanas.
- Specialty Chemicals : SQM.
- Other Metals And Minerals : Sociedad Punta Del Cobre Sa.
- Industrial Specialties : Enaex Sa.
- Food Retail : Smu Sa.
- Movies And Entertainment : Blanco Y Negro Sa.
- Specialty Food And Candy : Duncan Fox.
- Electronics Distributors : Sonda S.a.
- Major Banks : Banco De Chile, Banco De Credito E Inversiones, Banco Itau Chile.
- Apparel And Footwear : Forus S.a.
- Department Stores : Falabella Sa, Ripley Corp Sa, Empresas Hites S A, Empresas La Polar S.a.
- Pulp And Paper : Empresas Cmpc Sa.
- Food Distributors : Multiexport Foods.
- Regional Banks : Banco Santander-chile, Group Security Sa.
- Forest Products : Pasur Forestal Constr Y Comercial, Masisa S.a.
- Investment Managers : Afp Habitat Sa (Chile), A.f.p Provida, Afp Cuprum Sa.
- Oil Refining And Marketing : Empresas Copec Sa.
- Gas Distributors : Cge Gas Natural Sa, Empresas Lipigas Sa, Schwager Sa.
- Agricultural Chemicals : Sigdo Koppers S.a, Soquimich Comercial Sa.
- Major Diversified Food : Carozzi Sa.
- Wireless Telecommunications : Emp Nacional Telecomunicaciones Sa, Cge Transmision Sa.
- Construction Materials : Cemento Polpalco Sa, Soprocal Calerias E Industrias Sa.
- Real Estate Development : Cencosud Shopping Sa, Plaza Sa, Parque Arauco Sa, Salfacorp Sa, Zona Franca De Iquique Sa, Paz Corp Sa, Socovesa Sa, Inmobiliaria Manquehue S.a.
- Life And Health Insurance : Inversiones La Construccion Sa.
- Meat And Fish And Dairy Food : Inversiones Nutravalor Sa.
- Airlines : Latam Airlines Group Sa.
Chile offers exciting opportunities for entrepreneurs looking to set up or expand their businesses. Its stable political environment, favorable trade policies, and strategic location make it an attractive destination for foreign investors. Setting up a business in Chile is a straightforward and transparent process, and the country offers various support systems to help businesses thrive. The Chilean workforce is well-educated, making it easy for companies to find skilled talent. Understanding the local business culture is essential to establish personal relationships and succeed in the Chilean business sector. By following the tips in this guide, you can navigate the Chilean business landscape and set your business up for success.
