Chile boasts one of the most solid economies in Latin America. Its gross domestic product amounted to US$247 billion in 2016 and it has free trade agreements with markets representing almost two thirds of the world's population.
According to the Economist Intelligence Unit, it is among the top 20 best countries to do business and is the first Latin American country to have featured on the list.
Chile was also the first country in South America to join the Organization for Economic Cooperation and Development and it is likewise an associate member of the MERCOSUR South American trade bloc, which includes Argentina, Brazil, Paraguay, Uruguay and Venezuela, although the latter has been suspended since December 2016. It is likewise a member of the Asia-Pacific Economic Cooperation (APEC) forum, which includes 21 Pacific Rim members and promotes free trade throughout the region, as well as a founding member of the Union of South American Nations (UNASUR).
Culturally, Chile has a strong national identity. But the country's geographical diversity – it covers a huge 6,000 kilometres and has more than 18 million inhabitants – means there are a great diversity in customs. Here are some that you may find useful to understand when doing business in the country though:
Holiday times
It is important to think about in advance which dates may or may not work for doing business in Chile. For example, as most Chileans tend to take holidays in February, executives are not generally available to meet with visitors at that time. Moreover, during Holy Week, which usually takes place between March and April depending on the year and is commonly celebrated throughout Latin America, companies close for at least two days. Independence Day and Patriotic Holidays also take place between September 17 and 20 (again, according to the year), which also affects normal operations.
Behaviour
In general terms, Chileans are characterised as being supportive, welcoming and friendly. But they tend to be formal in their dealings with others, especially when doing business, so it is advisable to address your host and colleagues formally and greet them with a handshake.
Meetings
Punctuality is important for anyone doing business in Chile. It is important to comply with the agreed time for a meeting, so do bear in mind that large cities tend to have heavy traffic. It is common to start a meeting by exchanging business cards and undertaking light, personal conversation, before discussing business matters.
Transparency
Chile experiences low levels of corruption and the business community firmly believes in transparency. When doing business with a new company, it is common to carry out due diligence on them to corroborate their credentials and authenticity through processes such as the Know Your Customer anti-money laundering rules. For this reason, it is not advisable to try to change or expedite local business processes as it can be interpreted as an attempt at corruption.
Legal matters
Unlike some countries where the signing of a business contract marks the beginning of the negotiation process, no changes or further discussions are permitted in Chile once signatures are on documents.
Gifts
As in many other countries, offering gifts, activities or expensive trips is seen in Chile as an attempt at bribery and is prohibited according to most companies’ policies. But souvenirs, office items such as pens or USB devices are commonly given as a token of appreciation by both visitors and hosts.
Language
The ability to communicate effectively in Spanish is of great value to foreigners doing business in Chile. While most local executives are bilingual and accustomed to operating in English, people working in restaurants, hotels, taxis and shops may have little or no knowledge of the language.
Business hours
Unlike some countries such as the US, where the work culture is often 24/7 and receiving an email late at night is commonplace, Chileans tend to restrict work activities to working hours.
Cristián de la Cerda is managing director of TMF Chile, where he and his team support businesses expanding into or investing in the country. Cristian has more than 30 years’ experience in international professional services relating to finance, tax compliance, accounting, auditing and information technology. He was formerly a partner at Coopers & Lybrand, Andersen and Ernst & Young.
Chile boasts one of the most solid economies in Latin America. Its gross domestic product amounted to US$247 billion in 2016 and it has free trade agreements with markets representing almost two thirds of the world's population.
According to the Economist Intelligence Unit, it is among the top 20 best countries to do business and is the first Latin American country to have featured on the list.
Chile was also the first country in South America to join the Organization for Economic Cooperation and Development and it is likewise an associate member of the MERCOSUR South American trade bloc, which includes Argentina, Brazil, Paraguay, Uruguay and Venezuela, although the latter has been suspended since December 2016. It is likewise a member of the Asia-Pacific Economic Cooperation (APEC) forum, which includes 21 Pacific Rim members and promotes free trade throughout the region, as well as a founding member of the Union of South American Nations (UNASUR).
Culturally, Chile has a strong national identity. But the country's geographical diversity – it covers a huge 6,000 kilometres and has more than 18 million inhabitants – means there are a great diversity in customs. Here are some that you may find useful to understand when doing business in the country though:
Holiday times
It is important to think about in advance which dates may or may not work for doing business in Chile. For example, as most Chileans tend to take holidays in February, executives are not generally available to meet with visitors at that time. Moreover, during Holy Week, which usually takes place between March and April depending on the year and is commonly celebrated throughout Latin America, companies close for at least two days. Independence Day and Patriotic Holidays also take place between September 17 and 20 (again, according to the year), which also affects normal operations.
Behaviour
In general terms, Chileans are characterised as being supportive, welcoming and friendly. But they tend to be formal in their dealings with others, especially when doing business, so it is advisable to address your host and colleagues formally and greet them with a handshake.
Meetings
Punctuality is important for anyone doing business in Chile. It is important to comply with the agreed time for a meeting, so do bear in mind that large cities tend to have heavy traffic. It is common to start a meeting by exchanging business cards and undertaking light, personal conversation, before discussing business matters.
Transparency
Chile experiences low levels of corruption and the business community firmly believes in transparency. When doing business with a new company, it is common to carry out due diligence on them to corroborate their credentials and authenticity through processes such as the Know Your Customer anti-money laundering rules. For this reason, it is not advisable to try to change or expedite local business processes as it can be interpreted as an attempt at corruption.
Legal matters
Unlike some countries where the signing of a business contract marks the beginning of the negotiation process, no changes or further discussions are permitted in Chile once signatures are on documents.
Gifts
As in many other countries, offering gifts, activities or expensive trips is seen in Chile as an attempt at bribery and is prohibited according to most companies’ policies. But souvenirs, office items such as pens or USB devices are commonly given as a token of appreciation by both visitors and hosts.
Language
The ability to communicate effectively in Spanish is of great value to foreigners doing business in Chile. While most local executives are bilingual and accustomed to operating in English, people working in restaurants, hotels, taxis and shops may have little or no knowledge of the language.
Business hours
Unlike some countries such as the US, where the work culture is often 24/7 and receiving an email late at night is commonplace, Chileans tend to restrict work activities to working hours.
Cristián de la Cerda is managing director of TMF Chile, where he and his team support businesses expanding into or investing in the country. Cristian has more than 30 years’ experience in international professional services relating to finance, tax compliance, accounting, auditing and information technology. He was formerly a partner at Coopers & Lybrand, Andersen and Ernst & Young.
