{"id":120,"date":"2022-03-31T19:58:39","date_gmt":"2022-03-31T19:58:39","guid":{"rendered":"https:\/\/britcham.cl\/pruebas\/?page_id=120"},"modified":"2026-05-28T13:38:34","modified_gmt":"2026-05-28T16:38:34","slug":"market-entry-strategies","status":"publish","type":"page","link":"https:\/\/britcham.cl\/es\/doing-business\/market-entry-strategies\/","title":{"rendered":"Market Entry Strategies"},"content":{"rendered":"\t\t
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GENERAL INFORMATION<\/strong><\/h5>
Chilean law does not stipulate any minimum level of local participation in foreign-owned companies. However, it is necessary to have a local legal entity in order to operate business in the country.<\/span><\/h5>
Establishing a local subsidiary or branch office in Chile is recommended for a UK exporter expecting a large sales volume and\/or requiring local service support or localised inventory.\u00a0\u00a0<\/span>Any corporation legally constituted abroad may form, under its own name, an authorised branch in Chile. Franchising is also an interesting alternative that is growing at a fast rate in Chile.<\/span><\/h5>
Another practical, and more common, market entry strategy, especially for new-to-market exporters and companies that are testing and growing in the market, is to appoint a distributor, agent, or representative with good access to relevant buyers and solid technical expertise.<\/span><\/h5>
An appointed legal representative assumes liability associated with your company in Chile. Both non-resident individuals and companies are allowed to operate in the country, but to do so they require a tax number commonly called RUT.\u00a0\u00a0<\/span>Foreign companies and investors are subject to the same laws as nationals when doing business in Chile. Many UK companies already operate in Chile in sectors such as agribusiness, mining, education, clean growth, financial and professional services, infrastructure, life sciences, tech and creative industries, and retail.<\/span><\/h5>
For detailed information see:<\/span><\/strong><\/h5>
\"Drew<\/h5><\/div><\/div>
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Finding a Local Partner<\/span><\/strong><\/span><\/h5>
Even though starting a company in Chile is relatively easy and straightforward, it is highly recommended that foreign companies enter the Chilean market by appointing a local agent, distributor, or wholesaler. Commissions normally range from 5-10%, depending on the product. The key to good market presence \u2013 in a relatively small market like Chile where relationships are highly important \u2013 is finding the right contact with good access to relevant buyers and solid technical expertise. Different institutions, such as the UK\u2019s local Department for Business and Trade (DBT<\/span><\/a>) team, and the British Chamber of Commerce (BritCham<\/span><\/a>) can assist foreign companies to find the right candidate.<\/span><\/h5>
Key points to find the right match<\/span><\/h5>
\u2022 If possible, arrange meetings at the company\u2019s office, to get a feel for the size and quality of the organisation. If a market visit is impossible, and more recently under COVID constraints, successful meetings have happened virtually.<\/span><\/h5>
\u2022 Evaluate qualifications, skills, contact network and work experience through supporting documentation where possible and references.<\/span><\/h5>
\u2022 Check if the agent has representatives or distributors in cities other than Santiago.<\/span><\/h5>
\u2022 If your products\/services are normally contracted or delivered through a bidding process, ensure the candidate has comprehensive knowledge of all tender procedures. To sell to government entities, the supplier must be listed in the bidding platform\u00a0www.mercadopublico.cl<\/span><\/a><\/span>.<\/span><\/h5>
\u2022 The agent should have adequate knowledge of import\/export documentation, transportation, customs, and bank transactions. The ideal situation in Chile is to have a representative, importer and distributor all concentrated in the same organisation. If the selected candidate is a registered importer, request their registration number from the Chilean<\/span>\u00a0customs office<\/span><\/a>.<\/span><\/h5>
\u2022 Request a complete list of the companies the agent represents and ask about the contractual obligations the agent has with these companies to avoid conflicts of interest.<\/span><\/h5>
\u2022 Consider a representation agreement that contains a time limit and\/or initial agency arrangement for a specific trial period only. Local law firms can assist in drawing up a representation document valid under Chilean law. DIT and Britcham can assist in identifying suitable legal contacts.<\/span><\/h5>
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Franchising<\/span><\/strong><\/span><\/h5>
The franchise model has developed rapidly in Chile throughout the past two decades and today there are over 200 operating franchises in a market worth approximately US$3 billion. 39% of franchises operating in Chile are concentrated in the fast food and restaurant industry.<\/span><\/h5>
Chile has no special laws on franchises which are subject to the normal trade laws. The interested party must pay an initial fee to the franchisor to set up and operate the franchise. This gives access to the brands know-how, marketing, and methods of business operation. The franchisee pays a monthly royalty (6%) and a fee (2%) for corporate advertising, calculated as a percentage of sales. The initial payment, royalty and advertising fees are subject to VAT of 19%.<\/span><\/h5>
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Establishing a Chilean Entity<\/span><\/strong><\/span><\/h5>
The most frequently used legal structures used by overseas investors entering Chile are:<\/span><\/h5>