Chile SpA vs SRL

The Chilean Simplified Stock Corporation (Sociedad por Acciones, or SpA) is a flexible and modern business entity that also provides limited liability protection to its shareholders. Its key distinction from the traditional Limited Liability Company (SRL) lies in the fact that an SpA allows incorporation by a single shareholder (whether a natural or legal person), with no restrictions on nationality or residence, making it particularly suitable for sole entrepreneurs or foreign investors seeking full control. The capital of an SpA is divided into shares, and there is no minimum registered capital requirement, although the capital must be clearly defined in the bylaws and fully subscribed. In terms of management, an SpA is not required to have a board of directors; shareholders may freely appoint one or more managers, but the legal representative must be a Chilean national or a foreigner holding a specific residency visa. Overall, with its extremely low setup threshold, flexible equity management, and convenient fundraising capabilities, the SpA has become the preferred legal structure for startups and high-growth companies in Chile.