Individual company example

On the other hand, as a second objective, the balance of the system must be reinforced as the most effective way of ensuring an adequate capacity to respond to demographic and economic demands. For this purpose, measures are necessary to strengthen the financing structure of the Social Security through the assumption by the State of non-contributory expenses in the terms set forth in the agreement of July 1, 2021; at the same time, other measures aimed at containing in an equitable and fair manner the increase in expenses associated with the retirement of the baby boomers through incentives that favor the delay in accessing the retirement pension are also incorporated.

This law amends various precepts of the General Social Security Law and its contents can be grouped into two main blocks. The first of these relates to the revaluation of pensions, with the consequent repeal of the revaluation index and the introduction of a new article 58 in which, in line with recommendation 2 of the Toledo Pact, the guarantee of purchasing power is recovered through the updating of pensions according to the inflation of the previous year, in full harmony with article 50 of the Constitution and the doctrine of the Constitutional Court in this matter. Article 27 of the Law on State Pensioners is also amended for the same purpose.

Individual entrepreneur registration

When an employer is going to hire workers for the first time, he/she will have to apply for registration as a company before starting the activity. This will be done at the Administration of the General Treasury of the Social Security closest to his domicile. In the case of the workers of the Sea, it will do it in the Social Institute of the Navy. If you have a digital certificate, it can be processed through the Electronic Register of Applications of the Electronic Headquarters or through the services located in “Companies and Professionals”. At the moment of creating a company, you must take into account that it is necessary to carry out several procedures related to the Social Security. Prior to the start of the activity, you must request the registration of the company in the Social Security system.

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Obligations of the individual entrepreneur

SP. Superintendence of Pensions – Government of ChileHome / Pension Education / Pension System / AFP SystemI do not shareShareShareAFP SystemThe mandatory individual capitalization system means that workers must deposit each month a percentage of their remuneration, salary or taxable income in a personal account in a pension fund manager (AFP). The purpose of these resources is to finance the future pension that the individual will receive in retirement and, in the event of death, a survivor’s pension for his or her beneficiaries. AFP, pension system, individual capitalization, pension funds, pension fund managers, retirement age, pensions, pensions

In the AFP system, also known as the AFP system, workers are required to save in an individually funded account with a pension fund manager (AFP). This deposit or saving is called contribution and corresponds to an amount equivalent to 10% of the individual’s remuneration or taxable income. To this is added the commission charged by the AFP for managing this account, which currently ranges from 0.58% to 1.45% of the person’s monthly taxable remuneration, plus another additional percentage to access the Disability and Survivorship Insurance (SIS).

Individual entrepreneur characteristics

When starting the economic activity, we inform some basic data, such as the tax domicile or the chosen taxation. If any of these data changes, we must communicate the fact to the Tax Authorities. It can happen, for example, that a communication from the Tax Authorities is sent to the previous address. Any damage that could be derived, would be our fault.

2.        The second step to become an individual entrepreneur is the Social Security. Specifically, it is necessary to register in the Special Regime of self-employed workers or RETA. This is done during the thirty calendar days following the start of the activity. As in the previous one, it is necessary to communicate the cessation of activity, otherwise we must continue paying the quotas.

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3.        In order to hire employees, the self-employed must register as an employer-contractor. The SS assigns a contribution account, a mutual insurance company for accidents at work and illnesses must be contracted, and the intention is to cover the professional contingencies of the future worker. Although the procedure is almost identical to that of the self-employed, the two should not be confused.