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Business & Corporate

Startups, Franchising & Market Entry in Chile

Test the Chilean market before you commit to a permanent establishment — and get the IP and equity right while it is still cheap to fix.

What this involves

Not every market entry needs a Chilean subsidiary on day one. Distribution, agency, franchising and cross-border sales each carry a different footprint, a different tax exposure and a different level of commitment — and picking the heaviest structure first is a common and expensive default.

For startups the priorities are different again: making sure the IP the founders built is actually owned by the company, that the equity structure can absorb an investor, and that Chilean tax and labor treatment of founders and early staff does not create a problem that surfaces during due diligence two years later.

What we handle

Market entry structuring

Choosing between distribution, agency, franchise, branch and subsidiary, with the tax and permanent-establishment consequences of each set out plainly.

Franchise agreements

Drafting or localizing franchise documentation for Chile: territory, fees, standards, IP licensing, termination and post-term restrictions.

IP assignment and protection

Ensuring code, brands and content created by founders or contractors belong to the company, and registering trademarks in Chile before someone else does.

Equity and investment readiness

Cap table structures, vesting, and the bylaw provisions Chilean and foreign investors expect to see.

Founder and early-team arrangements

Founder agreements and the contractor-versus-employee question, which Chilean labor law answers on substance rather than on the label used.

How we run this for a client abroad

01

Assessment first

You send the documents you have. We tell you what applies, what it costs and how long it takes — before you commit to anything.

02

Power of attorney

Granted at a Chilean consulate or apostilled where you live. It lets us act for you in Chile without you travelling.

03

We file, you get updates

Our attorneys handle the filings and appearances in Chile. You get plain-English updates at every stage.

Startups, Franchising & Market Entry — common questions

What English-speaking clients ask us most about this specific service.

Do I need a Chilean entity to sell into Chile?
Not necessarily. Cross-border sales and distribution arrangements can work without one, though they have tax and consumer-law consequences of their own. The entity becomes necessary when you employ people locally, hold assets, or your activity amounts to a permanent establishment. We map the threshold for your specific model.
Is franchising regulated in Chile?
There is no dedicated franchise statute imposing a US-style disclosure regime, which means the agreement itself carries almost all the weight, alongside general contract, competition, IP and consumer-protection rules. That makes the drafting more important here, not less.
Can foreign investors hold equity in a Chilean startup?
Yes, and it is common. The practical work is in structuring the vehicle and the bylaws so a future round does not require rebuilding the company, and in getting foreign shareholders their Chilean tax IDs early rather than at the moment of signing.
Our founders are contractors, not employees. Is that a problem?
Potentially a significant one. Chilean labor law looks at the substance of the relationship — subordination, schedule, dependence — rather than the contract's title, and recharacterization brings back-pay, contributions and penalties. It is also one of the first things a diligence team looks for. Worth resolving before it is found.

Talk to a Chilean lawyer about entering the Chilean market

Get an initial assessment in English — confidential, with no obligation.

Book your consultation now →
WhatsApp+56 9 5217 5304
Emailhola@oklegal.cl
HoursMon–Sat 09:00–20:00