Chile Forum

Yea, every so often some stupid rumor starts getting passed around the internet, by word of mouth, or whatever. A lot we just ignore, because they are simply too stupid, some however are just dangerous. So one recently reached us that I got to put down with both barrels.

Rumor: Chile changed the law recently so only Chileans can own a business, and any foreigner that currently owns a buisness can only sell to a Chilean.

TRUTH: The protection of private property for foreigners is written in to the Chilean constitution, and it would take a nearly mammoth amount of political coordination to change it. It would be very very front page news, and the peso would not be worth the paper it is printed on as a result of companies taking their money and leaving the country. This is very very false.

We are looking in to the source of the rumor, but it smells a lot like someone trying to pull a fast one over on a gringo.

If anyone comes across anything like this on the internet, Please let us know.

I would add that owning a buisness in Chile is one of the Legally most simple things a foreigner can do. Working in a buisness you own in Chile is a bit more complicated as you need a work permit, but even this is not that difficult relatively speaking.

If you simply want to own a buisness and have employees or partners run the buisness in Chile, all you really need is a RUT number (one form and a trip to the nearest IRS office, copy of your passport). If you want to work in the buisness physically in Chile, then you do need a work permit even as the owner.

Corporations and whatever get more complicated still as they do everywhere in the World, but that is not a super problem either. You can own a corporation in Chile with little more than your RUT number.

Fundamentally, there is no restrictions on a foreigner owning or selling a buisness that does not exist for a Chilean. We buy, sell, and help clients start businesses all the time, and all of our clients are foreigners. We have also helped foreigners buy businesses from other foreigners.

If I had to say there was any sort of restriction, it would be in the fact that most foreigners have no credit history in Chile so the banks can be a pain to deal with. That however, is an issue of private company policies not national law. Good luck trying to get credit in just about any new country, where you do not have a credit history.

Other than that, there are very few restrictions related specifically to foreigners.

Absolutely correct!
What's difficult is obtaining accurate information and failing to recognize the importance of paperwork. Everything needs to be notarized and many things need to be published as well.
It is the same for Chileans and foreigners.
Most offices do not keep the hours we are used to as well. So things tend to take longer with more visits than we feel is required.
Just keep moving forward, the barriers are easier to conquer than you think.