I. Types of Business Entities -

1. Description of the types of entities available -

In Chile, there are different types of entities available to establish a business. The most common entities for foreign investment are: (i) Limited Liability Partnership or Company (Sociedad de Responsabilidad Limitada, “SRL”); (ii) Corporation (Sociedad Anonima, “SA”); and (iii) Stock Company (Sociedad por Acciones, “SpA”).

a) Sociedad de Responsabilidad Limitada -

The SRL has a minimum of two partners and a maximum of fifty. There is no restriction on foreign partners. There cannot be less than two partners, as the partnership is automatically dissolved if there is only one partner. Each partner’s liability is limited either to the amount they contributed to the capital or an upper amount specified in the partnership deed. This company differs from the next two (SA’s and SpA’s) in its character as “persons corporation”, where the identity of the partners and the relation between them is essential to the validity of the company, in such length that the names of the partners are included in the bylaws.