Legal Alert: Framework Law on Sectoral Authorizations (Law No. 21,770)

Authors: Alejandro Álvarez and Blanca Oddo – Alvarez Abogados

On September 29, 2025, Law No. 21,770, the Framework Law on Sectoral Authorizations (LMAS), was published in the Official Gazette. This law introduces a comprehensive modernization of Chile’s permitting system, creating a unified digital framework for more than 380 sectoral authorizations across 16 ministries.

Purpose and scope

The LMAS aims to simplify, standardize, and digitalize administrative permitting procedures, ensuring legal certainty and efficiency.

Key objectives:

• Establish a uniform administrative framework for sectoral authorizations.
• Enable digital interoperability among state institutions.
• Promote speed, transparency, and procedural certainty.
• Encourage investment and sustainable development through regulatory predictability.

The law applies to all state agencies with permitting authority, except the Comptroller General, Armed Forces and Police, the Central Bank, and state-owned companies, which may opt in voluntarily.

New institutional framework

The LMAS creates the System for Sectoral Regulation and Evaluation, composed of:

• The Office for Sectoral Authorizations and Investment (OASI).
• The Committee for Sectoral Authorizations and Investment (CASI).
• All sectoral agencies governed by the LMAS.

It also creates SUPER, the Unified System of Sectoral Permits, providing full traceability and transparency through an online platform.

Standardized procedure and timelines

The framework procedure must be consistent with Law No. 19,880 and prevailing sectoral regulations.

Main features:

• Formal admissibility review with automatic acceptance if no response is issued within the set timeframe.
• Classification of authorization types, each with maximum processing times and positive or negative administrative silence.

Examples:

Failure to comply with legal time limits without justification results in administrative liability for the responsible officials.

Enabling administrative techniques and regulatory stability

The law introduces Administrative Enabling Techniques (THA) such as notices and sworn statements, replacing certain traditional permits.

• THAs are documented through certificates subject to challenge and oversight.
• False or misleading declarations constitute a criminal offense.
• Strategic projects classified by OASI may benefit from up to 50% shorter processing times.
• Projects with approved Environmental Qualification Resolutions (RCA) may enjoy regulatory stability for up to 8 years.

Entry into force

• The law entered into force upon publication, though most provisions will become effective later.
• The classification decree must be issued within 4 months.
• The THA regulation must be issued within 1 year.
• OASI must be operational within 12 months, and SUPER within 11 months.
• The framework procedure takes effect 18 months after publication.

For more information about Law No. 21,770 and its implications for investment projects, please contact Alejandro Álvarez (aalvarez@alvareza.cl) or Blanca Oddo (boddo@alvareza.cl).Alvarez Abogados.