Chile Forum

Hi there - I'm interested in starting a bar in Valparaiso. How easy is this to do from a foriegn investment point of view and how does this sit with the fact that I'm currently on a tourist visa? What are the initial steps I need to take to (a) start the business and (b) change my resident status?

I know it's OK to buy property on a tourist visa, such as a house, apartment or land.

But buying an existing business or starting a new business would require you to, (I believe) open a Chilean corporation, in other words file papers etc. As far as I know you cannot do that on a tourist visa. You would need a Chilean partner. Or have at least a temp residence permit. I believe to above to be true but I'm not an expert.

I have been told that the best, (fastest) way to change from a tourist visa is to be offered a contract to work for a Chilean company. The trick there being you need to have a friend who has a Chilean company.

I'm sure that others here could help you with better info than me on this subject, but I thought I'd tell what I think to be true.

cheers.

To open a corporation in Chile (usually sociedad anonima) there is no need of chilean partners, only a chilean representative to impuestos internos (for tax purposes only), It may be your accountant or anyone. You may do it also with tourist visa, no problem.

The 3 most usual ways to start a business here are:

1-As natural person, no need start a coorporation, is the most usual for small openings, because you only need to do "iniciacion de actividades" and seal the invoices and books at Impuestos Internos. Probably you have problems to do so with tourist visa because with this kind of visa you are not allowed to work in Chile, but, as you can open a company and register it at Impuestos Internos with tourist visa It may be possible, I am not sure on this.

2-As "Compañia limitada", you need to do some paperwork with a lawyer and -at least 2 asociattes- It takes some 2-3 weeks and cost is about CLP$150.000.- in total, you may also open as "Sociedad Anónima Cerrada" more paperwork and more cost, same requisites

3-As "Sociedad Individual de Responsabilidad Limitada" same as "Compañía limitada but no need an asociatte

For a bar or any small business I would recomend you as "persona natural" provided you are allowed at impuestos internos. If not you must try to apply to a temporary Visa or try with 2 or 3

t brad points out the basic tax and legal personification of a business....which would be sole propieter, partnership, corporation, llc, s corp etc...the difference is that for example here in the us your social security number and your federal tax id number are one in the same....and if you are a sole prop. than even the number for that business can be the same.

In Chile everyone has a "rut" which is thier sole identifing number...it is on thier national id, and even tha same number for passsports...the number never changes(i think as well the drivers license has the rut to identify you as well with no other number. When you open a business as a sole prop in CHile or "como persona-natural" the business gets a "rol" which is the identiy on a non-human business organization. As well sociedad anonima etc get rols but the unusual thing is that in CHile the sole prop business gets one as well.

THe rol is a number that is tracked through the system and is identified on all the invoices, bill of lading etc....because tax evasion could really get out of hand if not severely controlled, getting that number is a big deal(read:big deal but not hard to do)

In CHile it is the "iva" or value added tax where the government gets its cash....in CHile you must pay your taxes every month...which is basicaly the difference of iva you "bought" and the iva you sold...19% at the moment....there really isn't an income tax in Chile as everything is paid through the iva or "use" tax. THere is an "impuesto de la renta" for certain situations and proffessions but say like a doctor who doesn't really charge iva on his service but pays a tax on his "honorarios" and is charged on a boleto de honorario rahter than boleto or factura.

the famous "giro de despacho" is a whole other topic on how its used...and i'll only get into buying and selling iva after a few cups....


p out