Countries › Chile › Guide › 4. Entities and setup › Empresa individual de responsabilidad limitada (EIRL) in Chile: single individual owner, ring fenced assets and the cases of unlimited liability

Empresa individual de responsabilidad limitada (EIRL) in Chile: single individual owner, ring fenced assets and the cases of unlimited liability

Last verified: 2026-10-26 · Status: Stable

An EIRL lets one individual run a business through a separate legal person whose assets are ring fenced from the owner's own. Only a natural person can own it, so a foreign company cannot use it, and the owner loses limited liability in defined cases such as acts outside the business purpose or withdrawals that are not real profits. It is formed by public deed or online for free, and for tax and other matters it follows the rules of the Ltda.

USD figures use the dólar observado of CLP 972.60 per US dollar for 1 October 2026, the latest value in the SII dólar observado table on 26 October 2026. The UF is CLP 41,221.08 for 26 October 2026 (SII UF table) and the UTM is CLP 72,151 and the UTA CLP 865,812 for October 2026 (SII UTM table). Conversions are for orientation only.

Key facts

Owners of an EIRL	One individual only textLey Nº 19.857, art. 1, as of 2026-10-26 · in force
Minimum capital of an EIRL	No minimum set by law textLey Nº 19.857, art. 4, as of 2026-10-26 · in force
Deadline to register and publish the EIRL extract	60 daysLey Nº 19.857, art. 5, as of 2026-10-26 · in force
Days to convert a company held by one person into an EIRL	30 daysLey Nº 19.857, art. 14, as of 2026-10-26 · in force
Maximum period heirs may continue the EIRL	1 yearsLey Nº 19.857, art. 15, as of 2026-10-26 · in force

The rule

1. Any natural person may set up an individual limited liability company. The EIRL is a legal person with its own assets separate from the owner's, is always commercial and subject to the Código de Comercio whatever its purpose, and may carry out any civil or commercial operation except those reserved by law to corporations.
Example: A Colombian engineer resident in Santiago forms Ingeniería Ríos E.I.R.L. to invoice clients. / A foreign holding company cannot be the owner; it would use an SpA instead.Ley Nº 19.857 (individual limited liability companies), Art. 1 and art. 2, 2003-02-11 official text · verified 2026-10-26

2. The EIRL is formed by public deed stating the owner's name, nationality, marital status, age and domicile; a name containing at least the owner's name and surname, optionally a trade name and the business activity, ending with "empresa individual de responsabilidad limitada" or "E.I.R.L."; the capital transferred and whether in cash or in kind with its value; the specific business; the domicile; and the term (indefinite if silent). A notarized extract must be registered in the Commercial Registry of the domicile and published once in the Diario Oficial within 60 days of the deed. Omitting these formalities makes the act absolutely void, and if the constitution is void the owner is personally and unlimitedly liable for business obligations, subject to cure. An EIRL may also be formed online.
Cost to do it: Online: CLP 0 registry fee. Traditional: Diario Oficial publication of 1 UTM (CLP 72,151, about US$74), free if capital is below UF 5,000 (Ley Nº 20.494 art. 4), plus notary and Commercial Registry charges.Ley Nº 19.857; Ley Nº 20.659, Ley Nº 19.857 art. 3, art. 4, art. 5, art. 6 and art. 7; Ley Nº 20.659 art. 2, 2013-02-08 official text · verified 2026-10-26

3. The EIRL answers for obligations contracted within its business with all its assets; the owner answers with personal assets only for actually paying the contribution promised. Management belongs to the owner, who may appoint a general manager or grant powers by public deed registered and noted in the Commercial Registry. Contracts between the owner's personal assets and the EIRL's assets are only valid in writing and from protocolization before a notary, and must be noted within 60 days. Net profits belong to the owner once withdrawn, and the owner's personal creditors have no action against the EIRL's assets.Ley Nº 19.857, Art. 8, art. 9, art. 10, art. 11 and art. 13, 2003-02-11 official text · verified 2026-10-26

4. The owner is liable without limit for acts and contracts outside the business purpose; for acts carried out without the EIRL's name or representation; if the EIRL enters into simulated acts, hides assets or acknowledges false debts; if the owner takes income out of proportion to the size of the business or makes withdrawals that are not net realizable profits; and if the owner, managers or legal representatives are convicted of insolvency offences.
Example: The owner withdraws CLP 30,000,000 in a year when the EIRL had no profits: creditors may pursue the owner's personal assets. / A withdrawal of about US$30,845 not backed by profits removes the liability shield for the debts concerned.Ley Nº 19.857 as amended by Ley Nº 20.720, Art. 12, 2014-01-09 official text · verified 2026-10-26

5. The EIRL ends by the owner's decision, expiry of its term, contribution of its capital to a company, a liquidation order, or the owner's death, in which case heirs may appoint a common manager to continue for up to one year. Termination must be declared by public deed, registered and published. When one person comes to hold all the shares or interests in any company, it may convert into an EIRL by deed within 30 days. In all other matters the legal and tax rules of the Ltda. apply.Ley Nº 19.857 as amended by Ley Nº 20.720, Art. 14, art. 15 and art. 18, 2014-01-09 official text · verified 2026-10-26

Matter	EIRL	SpA	Source
Who can own	One individual	Any person or company	Ley Nº 19.857 art. 1; Código de Comercio art. 424
Owner liability	Promised capital, with art. 12 exceptions	Contributions	Ley Nº 19.857 art. 8 and art. 12; Código de Comercio art. 429
Adding a partner or investor	Requires transformation into a company	Issue or sell shares	Ley Nº 19.857 art. 14; Código de Comercio art. 434
Owner to company contracts	Written and protocolized	General rules	Ley Nº 19.857 art. 10

EIRL versus one shareholder SpA

Worked example

A Chilean resident freelance designer forms an EIRL online with capital of CLP 5,000,000 (about US$5,141). Registry fee CLP 0 (Ley Nº 20.659 art. 11).
When a foreign client wants to invest, the EIRL transforms into an SpA, following the SpA formalities (Ley Nº 19.857 art. 14), because an EIRL cannot have a second owner.

Step by step

1. Confirm the owner is an individual and decide the capital and the specific business, since acts outside it remove limited liability (art. 4 and art. 12).
2. Sign online or by public deed; on the traditional route register and publish within 60 days (art. 5).
3. Protocolize any contract between the owner and the EIRL and note it within 60 days (art. 10).
4. File start of activities, including the relevant assets the owner brings into the business (Código Tributario art. 68).

Common traps

A foreign company cannot own an EIRL (art. 1).
Acting outside the stated business or without the EIRL's name exposes the owner personally (art. 12).
Withdrawals not backed by net realizable profits remove the shield (art. 12 letter d).
Unwritten owner to EIRL contracts have no value (art. 10).

Sources

← Sociedad de responsabilidad limitada (Ltda.) in Chile: partners, deed, registration, management and transfer limitsBranch (agencia) of a foreign company in Chile: notary filing, deed, registration, capital assigned, representative and ongoing duties →