Doing Business in the United Kingdom VS Chile – A Comparison
Entrepreneurs often face a tough choice when deciding where to base their new venture, especially when the options include well-established economies like the United Kingdom and rapidly growing markets like Chile. Both countries offer compelling reasons for investors, yet differ greatly in legal systems, tax frameworks, and market dynamics.
The United Kingdom stands out for its globally connected business landscape, high quality of life, and lower costs for starting small businesses. Chile, on the other hand, offers access to Latin America, resource-based economic growth, and competitive trade agreements. This comparison outlines the key factors that will help you decide the best location for your expansion plans.
The United Kingdom: offers a strong legal system, political stability, and trusted governance, making it a secure environment for global business operations.
Chile: Chile maintains political stability and investor-friendly policies, although regulatory processes can vary regionally and require local legal expertise.
Taxation
The United Kingdom: imposes a 25% corporate tax rate and offers government-backed business finance support for eligible businesses.
Chile: Chile’s corporate tax rate ranges between 25% and 27%, with options for tax incentives in sectors like renewable energy and technology.
Chile: Chile also supports digital registration but may require notarized documents, making the process slightly more bureaucratic for foreign investors.
Cost of Living and Business Operations
The United Kingdom: offers lower setup costs for SMEs, especially when working with providers offering company setup packages outside major cities like London.
Chile: Chile’s living and office costs are generally lower than Western Europe, but imported goods and corporate services can increase expenses in key sectors.
Access to Markets
The United Kingdom: gives direct access to global markets through its trade agreements and digital infrastructure, ideal for starting a business in the United Kingdom.
Chile: has free trade agreements with over 60 countries and acts as a gateway to South America, making it strategic for companies targeting Latin American markets.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
Chile
Business Environment
Highly regulated, politically stable, and globally trusted
Politically stable with pro-investment policies
Corporate Tax Rate
25%
25%–27%
Capital Gains Tax
Yes, depending on asset type and holding period
Yes, typically between 10%–35% depending on conditions
Ease of Incorporation
Fast, digital, and cost-effective
Efficient but involves more paperwork and local notarization
Business Costs
Low setup cost for small firms, especially outside London
Lower overall living costs but sector-specific expenses vary
Market Access
Strong international network via trade and tech infrastructure
Strategic access to Latin American and Pacific markets
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The UK offers a more globally integrated market and stronger legal protections. If you’re starting a business in the United Kingdom, you’ll benefit from better digital infrastructure and easier cross-border expansion.
Company registration in the UK is faster and more digital-friendly. Chile’s process is efficient but often requires notarized paperwork for foreign entities.
Both countries have competitive tax regimes, but the UK combines a flat 25% rate with various business finance support programs. Chile’s rates vary between 25%–27% and are attractive for certain industries.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.