On the other hand, there may be authorized capital – that is to Incorporation or the increase of capital.Ĭapital increases have to be agreed by the Those, it must be done in the maximum term of 5 years from the moment of The shares must be subscribedĪnd paid in the term indicated in the bylaws – lacking a special provision on Liable up to the amount of they promised to buy. The capital is divided into shares, shareholders being Also, the main shareholder can increase the capital and leave the majority Of any partner to sell his/her shares to anyone who is willing to buy him/her Limitada (Spanish for limited liability company, LLC) steams from the ability The main con against a s ociedad de responsabilidad

However, if the SpA has a board of directors, the company’s CEO is the only one entitled to prepare a certificate with the current Board members. This is a kind of company suited for those who want to start a business and add new partners on any capacity on the way, or just investors.Ī Chilean joint stock company can have one or more shareholders and a rather light management structure since a board of directors is not required. It also allows having a plurality of corporate purposes, besides allowing other legal entities of persons to incorporate a SpA. One of the Chilean joint-stock company’s main advantage comes from the fact that it can be incorporated by a single shareholder, allowing new partners to join as the business grows. The sociedad por acciones – Spanish for a Joint Stock Company – entity was created in Chile by Law N° 20.190 as a simplified form of a corporation, and it was originally conceived for venture capital companies.

Why were joint stock companies created