Although Chile is small when compared with some of its Latin American neighbours, the country now attracts around the same level of Foreign Direct Investment as Mexico, which has one of the strongest economies in the region. The country also has a high economic freedom score, which means it’s easy to enter the territory and start a new business without too much political, or governmental, influence or control. This is perhaps the reason Chile is such an attractive option for businesses of all shapes and sizes looking to expand their brands internationally.
Thanks to a growing middle and upper class and the government pushing for investment in the country, Chile is a truly exciting market for small and medium-sized businesses ready to take their companies to the next level. Below, I’ve put together some of the ways in which businesses like yours can take advantage of the country’s changing face of recruitment and hiring.
Forming a company in Chile
Back in 2013, Chile became one of the easiest places in the world to start a new business after it introduced legislation that allowed new companies to be formed online in a single day. Indeed, both local entrepreneurs and international investors can file a new company online and trade the very next morning, a contrast to the way some countries require businesses to be formed.
Of course, there are lots of things that you need to take into consideration before founding a new business in the territory, and because of its emerging economy, it’s essential that you do your research and ensure your business idea is right for the country. Once you’ve found a legal expert who can help advise on your business venture, you can then register your company on the internet, and obtain a unique authentication number, and sign company statues. You’ll then receive a RUT number after registering with the Internal Revenue Service, and print receipts and invoices at an authorized printing company. After that, you’ll seal your accounting books and other documentation with the Internal Revenue Service and acquire a working license. You can then register for labour-related insurance, and you’ll be free to start trading in the country.
Whilst this sounds like a straight-forward process on paper, the truth is that there may be some obstacles to overcome, so working with a company that offers legal entity setup Chile-based makes sense. That way, you know you’ll be working with professionals who know how to register businesses, particularly those from international backgrounds, to guarantee approval.
How recruitment is changing
If you’re planning on launching a new business in Chile, then one of the first things that you’ll need to think about is hiring new talent. Indeed, you’ll struggle to grow a business and make new contacts in the country without first finding a business development manager and sales executive, who can work on building a name for your brand and putting the word out about your new products and services. You may decide to work directly with a Chilean recruitment agency, who will be able to translate your job specification into Spanish and assist in the interview process, or you could choose instead to take your search online. Internet adoption in the country is at an all-time high, with the latest figures suggesting that 77.8% of Chileans use the internet on a regular basis. That figure has climbed more than 3% in the past year alone, with more affordable and accessible smartphones, computers and internet connections making the country more digitally savvy. In the recruitment world, having a technology-literate population can help.
Indeed, there are many Chilean-based job sites and recruitment organisations, such as Jor Chile, which aggregates jobs from all different job boards and offers services to both companies and recruiters, as well as Laborum, Trabajando, and XpatJobs. Many of these jobs sites allow you to sign up and post your vacancy for free, charging only for premium listings that will place your jobs above those of a competitor. But with unemployment at an all-time high of 7.3% (a figure estimated to climb to 7.4% before the end of the year), you should be able to find top talent for your organisation in no time at all, provided you conduct thorough interviews.
How hiring is changing
Recruitment has changed a great deal in recent years, with job seekers effectively searching for their own roles rather than using job centres or working with a recruitment agency, but that’s not the only thing that has changed. Hiring in the country has also gone through a transformation, with more Chileans in temporary employment and freelancing. Startup Chile, for example, is a local accelerator that offers funding, training, mentorships and investors for entrepreneurs that want to launch their own businesses, a scheme that has no doubt changed the lives of many.
For investors and international businesses entering the country, there is another popular method of hiring that takes away the risks and pressures of establishing a new business in Chile. Whilst the process of doing so, as I have already highlighted, is simple, the truth is that entrepreneurs want to be able to dip into Latin American countries to ‘test the waters’ and hire staff without the pressure of being tied into long-term contracts, or having to fulfil and meet local regulations. The good news is that this is possible through Professional Employer Organisation services, which allows startups, investors and individuals to hire talent in Chile without having to set up their own legal entity within the territory, or even set foot in the country at all. PEOs hire employees on your behalf, managing their payroll, benefits, and human resources, whilst you effectively have full control over the employee and their workload. This reduces costs, allows you to access local talent without jumping through legal hoops, and reduces the risks of international investment.
If you’re thinking about expanding into Chile for your next business venture, be sure to consider the benefits of using a PEO, or look to hire independently on the internet. There are reasons why you should register a business, however, and asking for help in doing so can save you time and money. Whatever you decide to do, I wish you the very best of luck in your new venture!
Seasoned Business and Investment Professional in Latin America. Craig Dempsey is the CEO and Co-Founder of a leading multi-national group, that specializes in the provision market entry and back office services in the Latin America. Craig holds a degree in Mechanical Engineering and a Masters in Project Management. Craig is also a veteran, having served as an Australian military officer on numerous overseas missions and also a former mining executive with experience in various overseas countries.