We have already commented in this blog, the necessity for foreign investors to obtain a Taxpayer ID number in order to conduct different operations. Nevertheless, given the fact that the foreigner that wishes to invest in Chile does not necessarily reside permanently within the country, the current laws do not comply these persons to obtain a Visa or a residence permit.
Nevertheless, in case that the foreign investor is due to stay for more than 90 days in Chile, he/she can apply for a Foreign Investors Temporary Visa, valid for a 1 year term, which will enable its holder to reside within the country and therefore to perform any licit activity, without any special limitation.
Now, for the obtainment of this Visa it is important to distinguish the stage of the project, if it is a mere idea or if it is already set up and operational.
Taking into account the aforementioned we explain the legal requirements for obtaining this Visa for the first time.
We will start with the requirements that apply to every single person that requests a Visa, who are not necessarily an entrepreneur, investor or trader:
- Temporary Visa request via mail, completely filled and signed.
- A passport photocopy, this shall include the identification, number, issuing and expiry date and immigration stamped pages.
- Photocopy of the last Tourism Card. In case of loss, a copy can be requested at the Interpol office.
- A recent, in colour, photo with full name and passport number (3×2 cm.)
For people from certain countries it will also be necessary to exhibit judicial and criminal record certificates.
With regards to the documentation that will be requested to apply for a Foreign Investor Temporary Visa, we will have to identify the current state of the project. It is worth noting that all the documentation has to be submitted in its original or copies with the previous authorization by a notary public. These are the following:
- If the project is in a mere idea or concept stage:
- a) Description of the project, activity, market area, which has to include the information about its location, number of employees intended to hire, the amount of capital to be invested and overall prospects.
- b) Attest the entry of capital to the country:
- If the capital has entered to the country, it will have to be proven by banking, customs or any other suitable documentation on behalf of the interested party name, the entry of it, in money or goods, from abroad to Chile. And also prove that the person has the means to sustain him/herself economically in the country.
- If the capital has not entered into the country yet, it will have to be proven by any suitable document on behalf of the interested party that he possess capital abroad that will allow him to perform said investment in Chile and also that the person has the means to sustain himself economically within the country.
- If the project is already set up and operational:
- a) The entry of the capital will have to be proven, which corresponds to the income provided by the interested party to the Company.
- b) Attest the entry of the capital to the country: the same documentation of nº 1 depending if the capital has entered or it has yet to be entered into the country.
- c) The Company Bylaws and its amendments.
- d) Commencing of commercial activities before the SII (Chilean IRS) and the resolution of amendments issued by said entity.
- e) Attest the payment of municipal licenses.
- f) Lease or purchase agreement, or purchase deed of real estate that backs up the development of the project.
- g) Purchase and sales invoices.
- h) Last general balance or pre-balance stamped by an accountant.
- i) Last tax declaration (if it proceeds).
- j) Payment of IVA (VAT) corresponding to the last 3 months.
- k) Payroll of hired workers, with its respective pension payment certificates.
- l) Attest the authorisation of the competent authorities to carry out the economic activity in the determined location.
It is important to mention that any documentation issued abroad hast to be apostilled in its country of origin. In the case that these documents are in a language that is not Spanish, English, French, Italian, or Portuguese, they will have to be translated. Also, for a foreign person to be the legal representative of a Company, he or she has to be a Chilean resident (Citizenship), otherwise a Chilean person will have to be designated as the Company’s representative.
Even though the aforementioned seems somewhat bureaucratic, there is good news. Since that in april 4th of the current year, within the context of the International Investment Fourth Forum of InvestChile, President Bachelet announced the release of a new express visa, the “Visa Tech” which is focused in owners, partners and investors of technological services companies located in Chile, professionals or technology science technicians and entrepreneurs that have been recipients of the benefits of the Start-Up Chile program.
This new temporary visa, aiming to strengthen the investment and technological development in Chile, has as a main feature the fact that its issuing will not surpass 15 days, leaving behind the tiring procedure of the attainment of Visas that could deter the arrival of new economic players, this is because the Foreign and Migration affairs Department does not have a legal term which compels them to grant or reject a Visa application, a process that normally takes between 3 to 4 months.
In a next post and provided there is more information available about this new Visa, we will keep you informed.
Source: Foreign and Migration Affairs Department
Francisco Mulatti, Lawyer.
Photo: Miguel A. Amutio (CC0)