For up to date Information visit this link: https://www.bizlatinhub.com/professional-employer-organisation-peo-chile-employer-of-record-services-santiago/ Chile remains as the most stable region in Latin America to conduct business activities. Chiles open business environment, the range of attractive sectors/industries, a highly educated workforce (many whom are fluent in English) make the region a great place to conduct business activities. When hiring staff in Chile, you have (2) options. Check out the presentation below and discover the methods to hire staff in Chile in addition to employer obligations.

1. Hiring Employees +
Recruitment Requirements in
Chile
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Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in Chile
No – instead
employers use fixed
term employment
agreements
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
Minimum of 15
days
Vacation
entitlement
Max employer
contribution is 24-
26%
Total cost of
employment
Employers
Who manages
withholding tax?
• Profit sharing
• Medical Insurance
• Life Insurance
• Savings fund
Employee benefits

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Pathways to Hiring Staff
Through a local
legal entity
Through a PEO solution:
Professional Employer
Organization

4. Forming a Legal Entity in Chile
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In Chile, there are (3) main types of legal entities:
Corporation (SA), Limited Liability Company (SRL) and Joint Stock Company (SpA)
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations

5. Professional Employer Organization
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Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company

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contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America

7. Doing Business in Chile?
Learn More Here!
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Branch vs
Subsidiary/Local
Company in Chile?
Corporate Law
Santiago
What Are The
Business/Company
Accounting and
Taxation
Requirements in
Chile?
Steps to
Create/Set-Up a
Branch of a Foreign
Company in Chile