After the formation of a company, by means of the Electronic Company Registry or the old system, before the Commerce Registry, it becomes necessary an array of operations and proceedings that will ensure the company’s regular development.
As it is well known, the Initiation of Commercial Activities has to be conducted before the SII, this will notice to the Internal Revenue Service (Servicio de Impuestos Internos or SII) that the company has the taxpayer status. This involves that the company, even if it has no transactions yet, has to inform its respective tax declaration, or otherwise declare No Transactions (Sin Movimientos). When informing the Commencing of Activities it is worth noting that who carries out the procedure on behalf of the taxpayer (the company) is bounded to choose 1 out of the 4 available tax regimes that the company will be subjected to (for the next 5 years). This can be swiftly done online at the SII’s website.
Secondly, it is recommended to obtain the Unique Password (Clave Única), issued by the SII in order to gain access to company’s online services. This password has to be requested in person, by the company’s legal representative or by whoever has company’s power of attorney, to do so, at the respective SII’s office.
It also has to be attested the company’s Tributary Address. This has to be done again, in person, before the SII’s office corresponding to the company’s tributary address district (comuna), by the legal representative(s) or by a company’s trustee. The Tributary Address may be used as a proprietary or as a tenant, whichever it may be, it has to be demonstrated throughout the pertaining documentation, real estate property certificate (certificado de dominio) in the former and leasing contract for the latter.
Now, in order to be able to make use of electronic invoicing, an electronic signature has to be purchased, always by certified companies (E-Cert, Acepta.com, E-Sign, Certinet, and E-Partners). In the meantime the interested party has to attend to the respective SII office and do the activities’ verification proceeding, proving throughout tributary documents that the company’s commercial activity (giro social) that is registered in the SII corresponds to the company’s actual commercial activities. This is usually proved by presenting sales and provision of services agreements, or any other agreement that attests the commercial activities that the company declared it would carry out, i.e. invoices issued by suppliers or services agreements, which always have to be related to the commercial activity, buying orders achieve the same purpose.
Since July 1st of 2016, entered into force the Electronic Tributary Company’s Identity or E-Rut, which discards the physical credential in favour of a digital one, which allows its viewing and verification in a cell phone throughout the app, to be used in any procedure that requires it. This eases the requesting and acquisition of the RUT which at the same time, is free. The E-Rut is showcased in PDF format, which allows its printing. Anyone can check the validity and force of an E-Rut in the SII’s website. It is worth mentioning that physical Rut credential cards will not be issued to the taxpayers anymore.
Lastly, the municipal License has to be payed, which is mandatory in order to develop any commercial activity. This is issued by the tributary domicile’s district office in which the company will operate and generally they last a year. Depending on the company’s activity, the obtainable Licenses are 4:
-Trading: For business that focus on buying and selling in general
-Professional: for instance, medical practices, law firms, architects, etc.
-Industrial: For companies that dedicate to fabrication and manufacturing.
-Alcohols: For any business that sells alcohol, such as bars and restaurants.
The documents and terms to get hold of a municipal license, will vary depending on the district, nevertheless, there are common requirements to every district.
-Company’s Constitution, Extract Protocol and its official journal publication.
-Initiation of Commercial Activities before the SII.
-A document that attests the title by which the place is occupied: leasing agreement, real estate ownership certificate.
-If the request is about a branch or an address change, the document issued by the SII that proves it has to be exhibited.
-If it is about address change from another district it has to be exhibited last year’s balance sheet, the determination of own capital and the capital of the employees that work at the place.
– Feasibility report (informe de factibilidad), construction permit (permiso de construcción) and the property’s final reception (recepción final del inmueble) of the location where the business will function.
Depending on the type of activity it may be also necessary the exhibition of other authorizations.
It is important to say that the term to do such proceedings will also vary depending on the district, nonetheless, it will not be less than 30 days nor more than 60.
Francisco Mulatti, Lawyer
Photo: Daniel McCullough (CC0)