While legislation, economic indicators, social circumstances, public policies, and many other factors of a country have an impact and are crucial when deciding to form a company in another country, the banking issue should not be underestimated. For both national and foreign individuals, it is essential to have at least general knowledge regarding the procedures and processes necessary to open bank accounts. This is because no business or company can operate in practical terms without having a bank account. Therefore, it is necessary to understand how to open a corporate or company account, as during the process of forming a company in Chile, a bank account needs to be opened. In other words, there is no company if there is no corporate bank account.
Key Things to Keep in Mind When Opening a Corporate Bank Account in Chile
Different banks can have different application processes for obtaining a new corporate bank account. Although all banks have a business section, the requirements for obtaining a new corporate bank account are not unified, and some differences can be detected between the commercial policies of different banks within the country.
New companies, whether Chilean or foreign-owned, must first have a R.U.T. (Tax Number) in order to request the opening of a company account in a bank.
There are two types of company accounts in Chile:
1. Cuenta Vista (Account at Sight): This bank account is easy to obtain, as banks open them without demanding many requirements. However, the services offered by banks with this account are very limited. Generally, it only allows operation with a debit card and online transfers, without access to checks, credit cards, and other important services for corporate life.
2. Cuenta Corriente (Current Account): This type of bank account is widely used by companies in Chile. It allows for withdrawal through checks, debit cards, and online transfers. It is extremely useful for obtaining credit, access to a credit line, and credit cards, which facilitate company operations and logistics.
Opening a “Cuenta Corriente” Corporate Bank Account in Chile:
Among the two types of accounts available for companies, the “Cuenta Corriente” (Current Account) is much more attractive and advisable.
There are three alternatives for national or international companies to open a corporate bank account in Chile:
1. International Desk: This is a specialized area of a bank that provides assistance for the internationalization of companies. However, the requirements to access this assistance are usually very high, making it practical only for large transnational corporations and conglomerates.
2. Accrediting income: A company that can demonstrate a significant amount of income, sales, and recent accounting movements can easily access a “Cuenta Corriente” (Current Account). The bank will closely analyze the company’s financial solvency.
3. Naming a Guarantor: For new companies with no track record, especially those with foreign investors, it is recommended to appoint a natural person as a guarantor who can guarantee the payment of products bought by the new company.
Common Questions when opening a corporate bank account in Chile:
Based on our extensive experience, these are the common questions and doubts from clients looking to open a company bank account in Chile:
1. Can I open a corporate bank account online? No, although the application process can be initiated online, there must be physical attendance by the named legal representative in the bylaws of the entity at the bank branch.
2. What documents do I need to open a company bank account in Chile? Typically, you will need the company’s articles of incorporation, registrations, publications, a valid local tax ID, an initiation of activities affidavit issued by local tax authorities, and sometimes copies of past tax filings.
3. Who can have access to a company bank account? Banks typically allow master and read-only access. Master access is provided to shareholders and appointed legal representatives, while view access is provided to back office and accounting members. Additional banking access can be granted if required by the client.
4. What is the best bank in Chile for foreign companies? The best bank in Chile for foreign companies depends on the volume of transactions and operations. Santander Office Banking is a great choice for considerable volumes, while BICE and Itau are good options for lesser volumes.
5. Why do companies open bank accounts in Chile? Companies open bank accounts in Chile to receive and make local payments. Operating a Chilean entity with a foreign bank account is not recommended due to high costs, foreign exchange risks, impracticality, and difficulties in making mandatory payments.
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean. In addition to knowledge about opening a corporate bank account in Chile, our services include hiring & PEO, accounting & taxation, company formation, bank account opening, and corporate legal services. Contact us today to find out more about how we can assist you in doing business in Latin America and the Caribbean.
