Chile and Colombia sit at opposite ends of LATAM's regulatory openness spectrum for foreign-owned entities. Chile allows 100% foreign ownership with no local director or shareholder requirement and one of the most open investment frameworks in the region, formalized through InvestChile. Colombia, despite its popular SAS structure being well suited to foreign ownership, requires a Representante Legal who is either a Colombian national or a foreign resident holding a valid work visa.
| Chile | Colombia | |
|---|---|---|
| Formation timeline | 3-5 weeks | 2-4 weeks |
| Tax ID | RUT | NIT |
| Corporate tax | 25–27% (regime-dependent) + distribution top-up | 35% flat |
| Foreign ownership | 100% allowed (minimal restrictions) | 100% allowed (legal representative required) |
| Local director required | Not Required | Required |
Foreign ownership and corporate tax figures are summarized from each country's formation guide — see the linked guide for full detail.
Choose Chile if you want to run the entity entirely with foreign directors and shareholders, with no local director appointment required and a streamlined, well-documented foreign investment framework.
View Chile guideChoose Colombia if the SAS structure's flexibility and Colombia's market specifically fit your expansion plan, and you're able to appoint a Representante Legal who is a Colombian national or visa-holding resident.
View Colombia guideChile is the lower-friction entity to operate day to day — no local director requirement and a faster path to full foreign control of governance. Colombia's SAS is still a strong vehicle, particularly for companies that already have, or are willing to obtain, a legal representative with the appropriate residency status; the trade-off is that operational control isn't fully foreign-held without that appointment.
NavviPal handles company formation, compliance, accounting, and tax obligations in every market on this page — so you can focus on building your business.