How to start a business as a foreigner?

If you don’t work for your dreams, someone else will hire you to work for theirs.

Steve Jobs

Many of us agree that entrepreneurship as a foreigner is one of the most challenging decisions there is. Most people who manage to take that step go through a series of contradictory and confusing feelings: fear of failure, not earning the money they had expected, doubting their own abilities, and so on.

Despite all the challenges that exist, which are increased in a foreign country where everything is unknown and available resources are scarce, more and more immigrants are choosing entrepreneurship as a livelihood.

According to the Chilean Migration Service report, 16.8% of employed migrants belong to the entrepreneurial force, making a significant contribution to the country’s economy. So much so, that of the total of 109,422 companies created during 2019 through the Register of Enterprises and Companies (RES), 11,721 have at least one foreign partner, or 10.7%.

This data reflects the importance that the migratory force has acquired in Chile, since in 2014 immigrants had a participation in the creation of companies of only 4.6%. A fact worthy of admiration and effort!

If you have decided to start your own business and do not have the necessary financial support, there are alternatives in Chile that provide help. One of them is the Seed Capital Emprende a competitive fund that supports the birth of new businesses, financing work plans that include management, technical assistance and marketing. Another initiative that facilitates foreign entrepreneurship is Start-Up Chile a business accelerator that promotes technological ventures, subsidizing in some cases up to 90% of the project.

If you still have doubts about starting a business as a foreigner and you need one more push to take the first step, we have good news for you. Due to its progressive economy, Chile is the second best country in Latin America for entrepreneurship according to “The Global Startup Ecosystem Index Report 2021“, facilitating a favorable environment for the creation of Startups.

Initiation of activities for foreigners in Chile

I can accept failure. But I can’t accept not having tried.

Michael Jordan

If you have decided to start a business but feel confused about the process, our step-by-step guide will help clear your head.

1) Go to the Internal Revenue Service and obtain a provisional RUT. Proof of your foreign ID, country of origin and type of visa.

2) Define what type of company you are going to formalize: whether it will be a natural person or a legal entity. If you decide to do so as a legal entity, you have the option of incorporating a company. Chilean law offers different types of companies and it is important to know the difference between each one. If you don’t know which one suits you, click here.

3) When you are clear about the type of company you are going to incorporate, go to http://www.registrodeempresasysociedades.cl/ and select your option. You will be able to do it free of charge and sign from your computer.

4) Complete the electronic form with the required data.

5) Once the form is completed, the Internal Revenue Service (SII) will assign a RUT to your business.

6) With the RUT you will be able to make the affidavit of commencement of activities before the SII. You can do it in their office or online through their website.

7) If you want your business to have a physical location you must obtain a municipal patent. This is granted by the municipality corresponding to the commune where your business will be located.

8) Finally! Remember the day you finished this process because it will be your company’s birthday. So you can celebrate with your associates, family and friends.

If you are interested in more tools for your business, I invite you to listen to the Podcast“La senda del emprendedor” where experts in different subjects will help you to boost your business.