ABOUT CHILE

Amongst all the countries in South America, Chile is a long, narrow country located on the western edge of the continent, renowned for its diverse geography spanning the Andes Mountains, a vast coastline, and the Atacama Desert. The capital of Chile is Santiago, which is also its largest city and the economic and cultural center of the country. According to the report of the World Bank, Chile has been classified as a High-Income Economy, distinguishing it as one of the most developed nations in Latin America. The currency of Chile is the Chilean Peso (CLP). At the time of writing this article (June 11, 2025), the value of 1 Indian Rupee is approximately 11.23 Chilean Pesos, meaning 1 Chilean Peso is significantly lower in value than 1 Indian Rupee. The population of Chile is estimated at approximately 2.01 crores as of 2025. The neighboring countries of Chile are Peru, Bolivia, and Argentina. The most commonly spoken language in the country is Spanish. The majority of the Chilean population practices Catholicism, but other Christian denominations and other religions are also followed. Chile has numerous international airports, with Arturo Merino Benítez International Airport (Santiago) being the largest and busiest. Other significant airports include those in Antofagasta, Iquique, and Puerto Montt, providing convenient air connectivity. With its extensive coastline along the Pacific Ocean, Chile boasts numerous major commercial seaports such as San Antonio, Valparaíso, Iquique, and Antofagasta, which are crucial for its extensive international trade requirements.

The corporate income tax rate for companies in Chile operates on a semi-integrated system, with rates varying depending on the tax regime. For large companies under the “pro-investment” regime, the corporate tax rate is 27%. For companies under the “SME (Small and Medium-sized Enterprises)” regime, the rate is 25%. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Chile has to be done with utmost care, keeping in mind the laws of the country. The Chilean Companies Act (Ley de Sociedades) and other relevant legislation provide clear guidelines for foreign investors to register a company in Chile. Foreign investors can form various types of companies, such as a Sociedad de Responsabilidad Limitada (Ltda. – Limited Liability Company), Sociedad Anónima (S.A. – Public Limited Company), Branch Office, or Simplified Corporation (SpA). A Sociedad de Responsabilidad Limitada (Ltda.) formed and registered in Chile generally allows foreign investors to own 100% of the company.

In case an investor is planning to establish an Ltda. or S.A. in Chile, Opesh Group will be helping you in taking the right decision for setting up your business in Chile and we will also guide you about how to follow the procedure while formulating your company in Chile.

Types of Business which can be started in Chile-

Mining – Chile is the world’s largest producer of copper, with vast reserves. It also holds significant reserves of lithium (part of the “lithium triangle”), gold, silver, and molybdenum. This sector offers substantial opportunities for exploration, extraction, processing, and the development of mining technology and services. Renewable Energy – Chile has exceptional potential for renewable energy, particularly solar power (in the Atacama Desert) and wind power. The country is actively promoting investments in this sector to meet its energy demands and decarbonize its matrix. Opportunities exist in project development, energy storage, and green hydrogen production. Agriculture and Food Processing – Chile is a major exporter of fresh fruits, vegetables, wine, and seafood. Opportunities exist in modern farming techniques, organic agriculture, food processing, packaging, and high-value food exports, leveraging its diverse climate zones. Fisheries and Aquaculture – With its extensive coastline, Chile is a significant global producer and exporter of seafood, particularly salmon. Opportunities are strong in sustainable aquaculture, seafood processing, and export logistics. Infrastructure and Construction – There is a continuous need for investment in infrastructure development, including roads, ports, airports, and urban development. Opportunities exist in large-scale construction projects, public-private partnerships (PPPs), and smart city solutions. Information Technology (IT) and Digital Services – Chile has a developed and growing IT sector, considered one of the most advanced in Latin America. Opportunities are significant in software development, IT outsourcing, fintech, e-commerce, and digital transformation across various industries. Tourism – Chile offers unique natural attractions, from the Atacama Desert and Easter Island to Patagonia and the Andes. Opportunities abound in eco-tourism, adventure tourism, luxury travel, and hospitality services (hotels, specialized lodges). Financial Services – Santiago is a growing financial hub in Latin America, with a well-developed and regulated financial sector. Opportunities exist in asset management, fintech, and investment services.

Advantages of Starting Business in Chile-

Chile boasts a stable political and economic environment, considered one of the most reliable and transparent in Latin America. It has a strong commitment to free trade, with an extensive network of Free Trade Agreements (FTAs) with over 60 countries, including major economies like the US, EU, China, and India, providing broad market access. Chile is a leading global producer of key commodities like copper and lithium, offering vast potential for resource-based industries. The country has a highly educated and skilled workforce, particularly in engineering, mining, and IT. Chile possesses well-developed infrastructure, including efficient ports, modern road networks, and reliable digital connectivity. The government is proactive in attracting foreign direct investment, with agencies like InvestChile offering support and incentives. It is a pioneer in renewable energy in the region, with significant potential and a supportive regulatory framework for green investments. Chile offers a high quality of life and a safe environment, which can attract international talent.

Business Opportunities for Indians in Chile-

There are excellent and expanding business opportunities in Chile for Indian investors looking to establish a presence in a stable, developed, and globally connected Latin American market. Chile actively welcomes foreign businesses and offers a diverse and growing economy. Indian investors can explore significant business opportunities in sectors such as mining (especially copper and lithium), renewable energy, IT services, pharmaceuticals, and agricultural products. Collaboration in these sectors can leverage Chile’s resource abundance and market access, alongside India’s technological expertise and growing demand for raw materials.

Imports & Exports-

Trade is a vital component of Chile’s export-oriented economy, with significant volumes of goods being imported and exported. Proper research and development are crucial to identify suitable products for import or export and to assess market revenue potential.

Major items which are exported from Chile to India-

Copper ores and concentrates Molybdenum ores and concentrates Lithium carbonate Pulp of wood Sulphur Fruits (e.g., apples, grapes, kiwis) Fish and seafood (e.g., salmon, fish oil) Wood and wood products

Major items which are imported in Chile from India-

Vehicles (including automotive parts and two-wheelers) Pharmaceutical products Machinery and mechanical appliances Organic chemicals Textile and apparel products Electrical and electronic equipment Iron and steel products Rubber products Agricultural products (e.g., spices, rice)

Manufacturing-

Indian companies can look into establishing manufacturing units in Chile, particularly for value-added processing of minerals (e.g., copper refining, lithium battery components), agricultural products, or for producing goods for local consumption and regional export, such as pharmaceuticals and automotive parts.

Mining-

The mining sector is the most prominent area for Indian investment in Chile. With its world-leading copper production and vast lithium reserves, Indian companies specializing in mining, mineral processing, mining equipment, and related technologies can find substantial opportunities for extraction and value addition.

Major Indian companies which are currently working in Chile-

Tata Consultancy Services (TCS) (IT Services) Wipro (IT Services) Infosys (IT Services) Tech Mahindra (IT Services) Mahindra & Mahindra (automotive, tractors, IT through Tech Mahindra) Apollo Tyres (presence in Latin America, potential for operations/sales) Dr. Reddy’s Laboratories (pharmaceuticals, through distribution) Glenmark Pharmaceuticals (through distribution) Sun Pharmaceutical Industries (through distribution) KABIL (Khanij Bidesh India Ltd) has recently signed agreements for exploration and development of lithium blocks, indicating growing interest.

GDP = $357.6 billion (nominal, 2025f) GDP Growth = 2.5% (2025f) Ease of doing business rank = The World Bank’s Ease of Doing Business report has been discontinued; however, Chile generally ranks well in global competitiveness and economic freedom indices in Latin America. GDP per Capita = $17,760 (nominal, 2025f)

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