Purchasing a business in Chile and securing an investor visa are processes that require careful analysis and thorough planning. Having the support of lawyers specializing in commercial and immigration law not only simplifies the process but also ensures that all legal regulations are met, maximizing your chances of success.
Why is it important to have a lawyer when buying a business in Chile?
If you’re thinking about investing in Chile by acquiring an existing business, legal support is essential to ensure the success of your investment. Buying a company is a complex transaction that involves multiple legal, financial, and strategic factors.
Having the advice of specialized legal professionals will help you ensure that the business you intend to purchase is fully compliant and free from unforeseen legal risks. Additionally, your lawyer will guide you in meeting the necessary requirements for applying for an investor visa, which is crucial to live and operate legally in the country.
Key ways a lawyer can assist you
Here are some of the main ways a lawyer can help throughout the process:
Due Diligence
Before purchasing a business, it is essential to conduct a due diligence process. This involves a thorough review of the legal, financial, tax, and labor situation of the company you want to buy. Lawyers play a crucial role in this process by examining:
- The company’s financial statements.
- Employment and commercial contracts.
- Any outstanding debts or legal liabilities.
- Pending litigation or potential legal issues.
This analysis is vital to avoid unpleasant surprises after the purchase and to protect your investment.
Legal and tax structure advice
Lawyers can also advise you on the best way to structure the purchase, considering both tax and legal implications.
In Chile, there are different business structures (corporations, limited liability companies, etc.), each with its own tax, liability, and management advantages.
The right structure will depend on the size of the investment, the type of business, and your long-term goals. A lawyer will guide you to choose the most advantageous option from both a tax and legal perspective.
Contract negotiation and drafting
A lawyer plays a key role in negotiating the terms of the purchase. This process involves not just negotiating the price but also other important aspects such as:
- Payment terms (e.g., installments or lump sum).
- The inclusion of assets or liabilities in the sale.
- Warranties and responsibilities post-sale.
Once the terms are agreed upon, lawyers will draft the purchase agreement. This is a crucial document that sets out the conditions under which ownership of the company is transferred, safeguarding your legal interests.
Formalizing the purchase and legal compliance
In Chile, the transfer of a business is formalized by registering the transaction with the Commercial Registry. A lawyer will handle this process, ensuring that all documents are correctly filed with the authorities and that the transaction complies with local laws.
Moreover, lawyers will ensure compliance with labor and tax laws to prevent future legal problems.
Investor Visa
In addition to buying the business, you will need to obtain an investor visa to reside in Chile and manage your investment. According to Chile’s 2022 immigration law, the investor visa is available to foreigners who:
- Invest at least 500,000 USD in a project in Chile.
- Work for a foreign company that owns at least 10% of a Chilean business.
Lawyer’s role in obtaining the Investor Visa
Your lawyer will help you submit the investor visa application to the National Immigration Service and the Chilean Investment Agency. The process is complex and requires a thorough review of your investment project.
In addition, your lawyer will assist you in gathering all the necessary documentation for your visa application. You will need to provide proof that you have the required 500,000 USD for investing in Chile.
Once the Chilean Investment Agency validates the project, they will issue a support letter, which is a key requirement for obtaining the investor visa. Your lawyer will guide you through this process, ensuring compliance with all legal requirements and deadlines.
Benefits of hiring specialized lawyers
- Legal Security: A lawyer helps you avoid future legal issues that could jeopardize your investment.
- Time-Saving: Lawyers handle all legal processes, allowing you to focus on running your business.
- Legal Compliance: With a lawyer’s guidance, you ensure full compliance with Chilean immigration and commercial laws.
Contact Becker Abogados for a successful process
If you’re considering investing in Chile by purchasing a company and need legal guidance, Becker Abogados is ready to assist you. Our team of commercial and immigration law experts has the experience necessary to guide you through every step of the process.
¡Contact us today and ensure the success of your investment in Chile!
