LAW SIMPLIFIES THE INCORPORATION, AMENDMENT AND WINDING-UP OF CORPORATIONS

05 / 02 / 2013

With the aim to facilitate business and thus to move up in the ranking of Doing Business International, the Government has given an extra step with the recent approval of the bill which simplifies the incorporation, amendment and winding-up of corporations by the Chilean Congress. This is an effective measure to promote the creation of new corporations and thus encourage the entrepreneurship in Chile taking advantage of IT equipment modernization.

In effect, Official Gazette of February 8, 2013 publishes Act Nº 20.659   which “Simplifies the incorporation, amendment and winding-up of commercial companies”.

Summarizing this regulation broadly states that:

  • Is valid for the juridical persons that are voluntarily constituted or resort to this Law (the legislation does not substitute the system currently in operation).
  • It can include the facilities, incorporation, amendment and winding-up of the following types of corporations: individual liability partnership (E.I.R.L.); limited liability corporation, closed corporation, reciprocal guarantee association; commercial partnership, joint stock company (SpA), limited partnership and limited partnership issuing shares.
  • It will be incorporated with the signing of a form by the funding partner (s), partner (s) or shareholder (s);
  • This form shall be included under the public registry named as “Registry of commercial companies and partnerships” that shall be posted in a website.
  • This registry must be unique, national, public and free; The Ministry of Economy, Development and Tourism will be in charge of its administration.
  • Once the form is duly recorded into the Registry, it shall be understood as informed to the Internal Revenue Service to the effect of RUT (Tax Payer Identification Number) granting or eventually for starting a business or   invoice stamping procedure).
  • It is also contemplated the possibility of ”migrating” from the conservatory current registration system to the new one and vice versa;
  • Regulation shall be dictated by the Ministry of Economics within the term of 3 months as from date in which the law is published;

 

VALIDITY: This law will be in force as from the first working day of the month subsequent to the publication of the Law at the Official Gazette.

Should you have any further doubts, please do not hesitate to contact attorney Blas Bellolio R.     (b.bellolio@villaseca.cl).