Outsourcing back office services in Chile is a great way to streamline in-house operations from recruitment to accounting and legal support if you are doing business in Latin America’s fifth-largest economy. Biz Latin Hub can help you with company formation in Chile and ongoing back-office support.
| Key takeaways for back office services in Chile: | |
| Strong economy | Chile is the number 5 market in Latin America by GDP, meaning plenty of opportunity |
| Expertise and understanding | An experienced back office services in Chile firm can help you deal with unfamiliar situations |
| Guaranteed compliance | A local specialist will make sure you stay legally compliant and in good standing with authorities |
| Easier operations | Outsourcing processes such as payroll will lighten the administrative burden considerably |
4 key back office services in Chile to outsource
Recruitment & hiring
Identifying top talent in a new market can be challenging, given that you will be unfamiliar with the best educational institutions and may not know some of the most highly regarded companies operating, from which candidates may come.
That is why assistance with recruitment and hiring can be one of the best back office services in Chile to outsource, as it will allow you to call on the expertise and understanding of the provider, while tapping into their established network.
A back office services firm that offers recruitment and hiring will often provide professional employer organization (PEO) services in Chile, meaning that they can actually hire staff on your behalf, too.
That is a popular choice among companies that only need a limited number of local staff, or among investors who simply wish to get to know the market better before making a deeper commitment via company formation.
Company formation
If PEO services are not something that will meet your needs, you will need to register a company in Chile and that is another back office service you can outsource.
As previously mentioned, while Chile operates a relatively red tape-free regime in terms of establishing and running a business, there will still be administrative hurdles to overcome through any process, and an experienced provider will help you navigate them with the minimum fuss.
That means, when you outsource company formation, you are able to complete the process in the shortest time possible, with the guarantee of being in full compliance with all norms and regulations.
Legal services
While company formation is essentially a legal process undertaken by a law firm or lawyer in Chile, it is only one standalone legal procedure among many that can be outsourced.
If you choose to outsource legal services as part of a package of back office services in Chile, that will cover a great many aspects of your ongoing operations, and come with a similar guarantee of compliance, which will help you maintain the good standing of your company in the eyes of local authorities.
You provider of legal services will also be able to offer ongoing advice and support, including valuable insight into good partners, suppliers, and other stakeholders to work with.
Accounting & taxation
Beyond legal matters, accounting and taxation is another key source of compliance issues, which you can deal with effectively through outsourcing.
Whether you seek a dedicated accounting firm in Chile, or general back office services provider, acquiring support when it comes to periodic or annual reporting, end of year tax declarations, or overseeing payroll can lift a considerable weight from your in-house operations.
Moreover, if you are operating in multiple markets and your provider is active in more than one of them, they will be able to provide guidance on the likes of cross-border tax planning.
Chile popular among foreign investors
Chile is one of the most popular destinations for foriegn direct investment (FDI) in Latin America, thanks to a stable economy, limited political unrest in recent decades, low levels of corruption, and high levels of prosperity.
The country is also known for being pro-business and having low levels of red tape compared to other countries. However, the regulatory regime still has its own particularities, meaning that seeking expert assistance or outsourcing back office services in Chile can be a wise option.
Chile is famed for promoting free trade, and the country maintains an extensive portfolio of free trade agreements (FTAs) with countries around the world.
Some of those are established through the Pacific Alliance — an economic integration initiative that includes Chile, Colombia, Mexico, and Peru, and to which Ecuador recently formally applied to become a member.
The Pacific Alliance also recently demonstrated its desire to expand beyond the region, with particular focus on the Asia-Pacific region, when Singapore was inaugurated as an associate member, with the likes of Australia, Canada, New Zealand, and South Korea prospective future associate members.
Within the international investment community, Chile is particularly known for its mining sector, with major reserves of copper, precious gems, and metals. Beyond that, it also has a significant agricultural sector, with fruits and nuts and seafood among its key exports.
Chile also has a well developed manufacturing base, with the industrial sector responsible for generating over 30% of GDP, and the country a major producer of chemicals.
Regardless of which sector you are entering or type of business you do, seeking out support with a local provider of back office services in Chile can be a great way to streamline your in-house operations.
FAQs on back office services in Chile
Answers to some of the most common questions we get asked by our clients.
Can a foreigner own a business in Chile?
Yes, a business can be 100% foreign-owned by either legal persons (legal entities) or natural persons (individuals).
What is the Chile Company Tax ID (RUT)?
The Chile Company Tax ID is known as RUT (Registro Único Tributario), which translates in English to Single Tax Registration, a unique identification number for tax purposes in Chile.
How long does it take to register a company in Chile?
It takes 6 to 8 weeks to register and set up an operating company in Chile, contingent upon the timely submission of all necessary documents.
Which entity types offer Limited Liability in Chile?
The Sociedad por Acciones (SpA) and Sociedad de Responsabilidad Limitada (SRL) both provide limited liability protections to their owners in Chile.
How does one hire employees in Chile?
You can hire an employee by incorporating your own legal entity in Chile, and then using your own entity to hire employees or you can hire through an Employer of Record (EOR), which is a third party organization that allows you to hire employees in Chile by acting as the legal employer. With an EOR you do not need a Chilean legal entity to hire local employees.
What is the difference between hiring through an EOR and forming a legal entity?
The best decision depends on the needs of your company. Forming a legal entity has the following characteristics:
- Slower to establish.
- Permanent presence in the country.
- All costs deductible through a local entity.
- Ability to sign contracts and agreements locally.
- Ability to invoice through local entity.
- Legal entity compliance support required.
- Hire employees directly.
Biz Latin Hub offers back office services in Chile
At Biz Latin Hub, we help investors bridge the cultural and linguistic barriers they encounter when launching and doing business in Latin America and the Caribbean, where we have offices in 16 different markets.
Our portfolio of back office services in Chile includes accounting & taxation, company formation, legal services, hiring & PEO, and visa processing, among others.
Contact us today to find out more about how we can help you reach your commercial goals.
Or read about our team and expert authors.
