Chile is renowned as an attractive destination for investors, thanks to its economic stability and favorable business environment. If you are a foreign national considering purchasing a business in operation in Chile and seeking an investor visa, this article will guide you step-by-step through the process.
We will explain the requirements, necessary documentation, and steps you need to follow to secure both your investment and legal residence in the country effectively.
Why purchase an operating business in Chile?
Buying a functioning business can be advantageous for those seeking a solid investment opportunity in Chile and access to a residence visa. Investing in an established company offers benefits like:
- Immediate access to a stable market and customer base.
- Avoiding the challenges of starting a business from scratch.
- Facilitating investor visa requirements by demonstrating an active economic presence.
Additionally, Chilean legislation encourages foreign investment, providing legal security and support for investors.
Steps for acquiring an operating business
Acquiring a functioning business is straightforward if you have the necessary capital, meet certain requirements, and follow these steps.
Step 1: Business analysis and selection
Before purchasing, it’s essential to conduct a market study and analyze the company you wish to acquire. Ensure you understand its financial history, check for any potential debts or tax obligations, and review its customer base and market position. Becker Abogados can assist you with the due diligence process.
Step 2: Legal and financial review
Seek advice from a lawyer specializing in business transactions to review necessary contracts and documents. This review should include:
- Verification of licenses and permits: The company must comply with all local regulations.
- Employee contracts: Review current contracts and labor obligations.
- Financial statements: Ensure that accounts are clear and free from irregularities.
Step 3: Negotiation and signing of the purchase agreement
Once the business has been selected and reviewed, you can proceed with negotiating the price and contract terms. An expert lawyer is crucial here, ensuring the acquisition terms are fair and aligned with Chilean regulations.
Step 4: Property registration and notification to authorities
The business acquisition must be formalized by registering the new owner with the relevant authorities, such as the Chilean Internal Revenue Service (SII) and the local notary. Additionally, any changes in the company’s ownership structure must be reported.
Applying for the Investor Visa
Once the business purchase is completed, you may apply for the Investor Visa. This process must be undertaken with the Chilean Ministry of Foreign Affairs or the Directorate General of Migration and Immigration, requiring the following documents:
- Completed application form.
- Proof of investment (purchase agreement and business ownership registration).
- Business plan and financial projections.
- Clean criminal record and valid passport.
The Investor Visa application process can take from 1 to 3 months, depending on document accuracy and the administrative load of the responsible authority.
Financial requirements for obtaining the Investor Visa in Chile
The Chilean Investor Visa is a special category of temporary residence for foreigners looking to invest in the country. To obtain it, certain requirements and conditions must be met, including demonstrating the nature and feasibility of the investment. Key requirements include:
- Minimum investment amount: Applicants must prove a minimum investment of USD 500,000 or its equivalent in national or other currency.
- Solid business plan: A clear, structured document showing the profitability and positive economic impact of the business on the country. The investment should support projects that contribute to goods or services production, aiming to boost the economy, encourage innovation, or create jobs in Chile.
- Proof of funds’ legality: Financial documents justifying the origin and legality of the invested funds.
Meeting these requirements enhances the likelihood of visa approval.
Benefits and responsibilities of the Investor Visa in Chile
The investor visa grants you temporary residence in Chile with the following benefits:
- Right to work in the acquired business: This allows full integration into the company’s operations and management.
- Renewal and permanent residency: If the investment is maintained and complies with regulations, you can apply for permanent residency after two years.
As an investor, you also have responsibilities, such as maintaining economic activity and complying with the country’s tax regulations.
How can Becker Abogados assist you?
At Becker Abogados, we have a specialized team in migration and due diligence who can assist you. If you need more information or personalized assistance in purchasing a business and applying for a visa, contact us. Our experts in migration and commercial law will be glad to help you realize your investment in Chile.
