“Getting Started”

noruega

a guide to establishingyours business in Chile

Volcán Villarrica

introduction

business culture

language

getting started

visa and documents

company set-up

banking

administration

staff

postal servicesuseful addresses

index

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Introduction

Welcome to Chile! Chile is an interesting country with many exciting businessopportunities. However, there are many aspects of doing business in Chile whichmay indeed be very different to what you may expect or what you are accustomedto. The administrative systems for companies are quite bureaucratic and areusually very time consuming. This is the background for this guide which willassist you through the most basic practical steps of establishing your businessin Chile, thereby reducing the time you will need searching for information. Pleaseremember, this is by no means a complete guide, but should serve as an overviewof the most important matters to be aware of in Chile.

This guide offers an introduction to Chile and helps ensure that you ask the rightquestions to the right people. However, for further reading, we recommendseeking more in-depth information from professional sources. This guide doesnot include any references to issues such as the implications of International TaxLaws or Financial Investments as these topics are best covered in a morecomprehensive guide to Chile.

USEFUL FACTS:

UF Values (Unidad de Fomento)

The UF is the unit of money used mainly inbusiness and formal financial transactions and isfrequently used with rental contracts and buyingand selling businesses. This is purely a valuewhich can be converted into pesos or any othermonetary unit. The rate of the UF varies dailyaccording to the monthly inflation rate and it isposted in the newspapers as well as the banks. As a rough guide however 1 UF is equivalent toapprox. 18,000 CLP

To view today`s UF value online:

www.economiaynegocios.cl (the financial pagesof El Mercurio)

www.bcentral.cl/eng/ (Banco Central de Chile)

www.sii.cl (servicio de impuestos internos)

Making phone calls:

Mobile telephones in Chile have the digits 09 or08 in front of the number.

To call nationally within Chile, or internationallyyou will have to look up the local dialing code forthe area and use one of the telephone carriers.

Here are some of the most frequent carriers:

ENTEL: dial 123 +0 + country code + area code +number

Telefónica: dial 188 + 0 + country code + area code +number

VTR: dial 120 + 0 + country code + area code +number

Manqueheu LD dial 122 + 0 + country code + area code +number

Example: to ring a number in Norway – ring 123047 followed by the local number

Important phone numbers:Ambulance 131Fire 132Police 133

Clínica Alemana (Av. Vitacura 5951)

(02) 210 1111 or 210 1800 Emergencies: 210 1010

Clinica Las Condes (La Fonecilla 441, Las Condes)

(02) 210 4000 Emergencies 210 5150

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business culture

First meetings:Never expect to begin negotiations at the first orsecond meeting. If you are invited to lunch by abusiness associate, unless otherwise indicatedby your counterpart, do not start talking businessuntil the last 5 minutes. In general, seriousbusiness discussions can be dealt with during alunch, but rarely over dinner.

Business meetings in general:* Usually Chileans arrive on time for meetings

· * Start by offering you business card andtake time to time to look at your meetingpartner´s name and title.

· * Meetings will often begin with some light small talk, Chileans appreciate youtaking an interest in their country and they love to know where you have beenin Chile

· *Try to avoid arranging any important meeting in the summer vacations (January and February).

Asking the right questions:Chileans have a culture for only answering thedirect answer to a question without elaborating.While this can be very frustrating, there areseveral ways to approach this issue. It is worthasking more questions such as:

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Business relationships:In Chile, personal relationships between individuals are very important.Chileans first and foremost do business with people they can relate to andnot just with impersonal organisations. Allow time to develop your businessrelationships, trust is very important and it takes time to develop this in Chile.Chileans often mix business with their leisure time and Chileans will ofteninvite business associates and their families to their home at the weekendwhere they will proudly demonstrate their barbeque skills and you will havea chance to talk informally. These type of activities are important to Chileansand help to build the trust required for long-term business relations.

* How do you suggest we resolve this issue?* Does this mean ………….? Is there anything else we have to do about this?* How long do you expect this will take? Are there any deadlines attached to this?* What is likely to happen if we do this? What is likely to happen if we don`t do this?* What are the alternative options we have? Are there any other ways we can do this?

Unserious business people:Be careful of the fair- share of unserious peoplearound. There are always people who will tellyou they have good contacts with certaincompanies and that they can arrange meetingsfor you. What they often forget to say is thatthey expect a fee from you and you have noguarantee they actually have a highly regardedrelationship with the company or people inquestion.

Dress Code:Chileans generally dress conservatively and bothmen and women will wear suits in a formalbusiness setting. The dress code may be lessformal in other business sectors, but rarely jeanswill be acceptable except for manual work.

business culture

Working environment:* Try to ring people to make appointments in themorning, the afternoon lunch break can be quitevague and people may well be at lunch anywherebetween 13:00 – 15:30 hrs.

* Administrative processes in Chile take muchlonger than you ever would have expected. Makesure you allow plenty of time and avoid shortdeadlines until you understand the processesfully. In fact, having an internal and externaldeadline is a good idea!

* Chileans often leave things until last minute.To avoid this, make sure you follow up importantschedules and set earlier deadlines than youreally need if necessary.

* Chileans in general work very hard and havelong working hours. However, everyone is notnecessarily equally productive and may requiremore specific guidance

* Generally people work from 08:30/ 09:00 hrsuntil 18:30 hrs although many executives workmuch later than this.

Useful addresses:www.executiveplanet.com/business-etiquette/Chile.html

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Please Note!Saying No!: Chilean business people

are in general serious, honest andhard working, but their culture is avery indirect one when it comes tostating a lack of interest or simply

saying “no.” Signals that someone isnot interested include always saying

“I call you later" or by repeatedlydeferring appointments. This is

sometimes difficult to interpret asthey seem to do this all the time!

language

It may be hard to meet fluent English speakersin the Chilean business environment and one willgain a lot from speaking the Spanish language.However, as part of a 20 year plan, the Chileangovernment is investing resources to improvethe level of English amongst the Chileanpopulation. Currently, approx. 5% of Chileansspeak fluent English so there is really nothingelse to do but learn Spanish! It is important tofind both a lawyer and an accountant that speakEnglish as these are going to be the 2 mostimportant people to help you get started withyour business operations.

Do not think you can get by in English, Chileanslike to do business with people they know welland trust and often business life and social lifeare strongly connected. It is often in moreinformal gatherings that the real businessrelations are formed and you will definitely havea disadvantage if you cannot speak the language.

Learning Spanish: there are a number of languageschools to choose from and many of them offertuition in the work place. Several offertranslations services in addition.

Words connected with time – worth noting!

“Al tiro”: When someone says they will dosomething “Al tiro” it doesn´t necessary meanthey actually are going to do it right away

“Mañana”: when something is going to be done“Mañana” don´t always assume that this meanstomorrow – it might be worth asking which“mañana” are we talking about!

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Please note! Being politeThere is a clear hierarchy for showing

respect by using the Spanish “you”form (Usted in Spanish) when talking

to people for the first time, and inparticular to those who are in a highercompany position than yourself. For

everyone else the “tu” form issufficient.

Getting Started

7

steps to start your business

Norway

Chile

step 1visa and documents

step 2company set-up

step 3banking

step 4administration

step 5staff

step 6postal services

useful addresses

Visa and documents

Please Note!If you do not speak Spanish it is worth considering getting your lawyer to helpyou with the visa and other document processes. This work is very time consumingwhen you don´t know the processes and there are a lot of application forms tofill out in Spanish. By giving your lawyer the correct powers of attorney to dothis work on your behalf, you will save a lot of wasted time in long queues withthe wrong documents!

To quicken some processes, it is often easier to complete some of the proceduresin your home country by taking authorised translations to the Public Notary Office,then the Ministry of Foreign Affairs and then finally to the Chilean Consulate forofficial approval prior to your arrival in Chile.

Useful Word:“Las trámites”: refers to all processes you areever likely to go through in ChileThere is even a government website dedicatedto this:www.tramitefacil.gov.cl

All relevant documents are required!To save any frustrations waiting in long queues,or misunderstandings with your lawyer, it isworth carrying around with you a file containingseveral copies of all the documents you may beasked to produce. These should be authorisedtranslations when required and notarised by aPublic Notary Office. This file should include thefollowing documents:

* Passports of all family members and copies of the data pages of each of the passports (must show the stamp of the entry date into Chile)* 8 Passport-size photographs of each family member (write name and passport number on the back of each photo) - you can ask for I.D. card size photos ("fotos de tamaño carnet") at any photography shop* Certificates of citizenship for naturalized individuals

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* Marriage certificate* Birth certificates (including any adoption papers)* Divorce and child custody papers* School records, national tests and letter of recommendation for any children* Medical insurance coverage (and medical records if appropriate)* Degrees & any other university education certificates* Employment contract (from foreign or local Chilean company)* Salary payment slips from employer for the previous 3 months* Income tax records for several previous years* Contracts with any local Chilean companies* House rental contract in Chile* Any guarantees provided by the employing company* Copies of any bank statements for the previous 3 months (not always necessary)* Any Power of Attorney’s (notarised from the Public Notary)* Property insurance records, especially for cars* National and International Driving License* Wills* Police Record Testament (confirmation of any criminal records)

Visa and documents

The Public Notary - Notaría Pública : Notarisingdocuments and Powers of Attorney

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Please Note!* The Public Notary is used constantly to verify documents in Chile.* There are Public Notary offices scattered around almost every where. You shouldfind out where the nearest Notaría Pública is in relation to where you live or youroffice as you will soon become a frequent visitor!* You will be asked to provide your Cedula de Identidad and both your signature andfinger-print will be required for most documents

When you need the Notaría Pública:

1. Simple Power of Attorney- to withdraw money for someone- to inquire about bank account balances, onbehalf of other people or organizations- to carry out any type of banking matter

2. General Power of Attorney: Authorizing anotherperson to represent them in all legal andcommercial matters

3. Travel authorization for Chileans, or foreignerswith residence permits: e.g. giving consent foreither the mother or father to leave the countrywith their child

4. Special Power of Attorney: authorizes anotherperson to represent them in one or more specificmatters.

5. Letter of Authorization: when someone namesanother person to act in a specific matter ontheir behalf

6. Authorizing certain contracts, in particularbuying and selling property and assets

Step 1: Visa Applications from the Departamentode Extranjería (Department of Foreign Affairs)Please Note!* You have 30 days in which to register your visa with theInternational Police, if you do not register you will receivea fine.

* After you receive your visa, you will need to register yourvisa with the International Police and apply for your ChileanIdentification Card* You must apply for a visa extension before your visaexpires, otherwise you will receive a fine

* Arrive early at the government offices as the queuesquickly become very long – you may have to wait up 2hours in each office.

1. Tourist Visa: stay of 30-90 days dependingon the country of citizenship

Citizens from the following countries can enterusing a passport valid for at least 6 monthsafter their arrival and do not require a visa.

Argentina, Australia, Austria, Belgium, Bolivia,Brazil, Canada, Colombia, Costa Rica, Croatia,Czech Republic, Denmark, Dominican Republic,Ecuador, El Salvador, Finland, France, Germany,Greece, Guatemala, Honduras, Hungary, Iceland,Indonesia, Israel, Italy, Japan, Malaysia, Mexico,Morocco, Netherlands, New Zealand, Nicaragua,Norway, Panama, Paraguay, Peru, Poland,Portugal, Singapore, South Africa, Spain, Sweden,Switzerland, Turkey, Ukraine, United Kingdom,United States, Uruguay, Venezuela.

Visa and documents

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To re-new the tourist visa for an additional 3months, it is necessary to leave the country andre-enter Chile. A tourist visa does not allow youto work in Chile.

2. Temporary Residence Visa (Visa de ResidenciaTemporaria)

There are 2 types of Temporary Residence Visas:

Visa de Residencia Temporaria Titular* Allows you to work as an employee of foreigncompanies operating in Chile, as a freelancer orself-employed visitor to Chile* Valid for one year and can be renewed onlyonce. If the holder wishes to stay longer than 2years, they must apply for permanent residencein Chile.* The fee for the visa varies depending onnationality* Takes about 2 – 3 months to process* Documents required: Valid passport; 2photocopies of data page of passport; 2 photos (3 x 2 cm) with the name and passport numberof the applicant; Reason for being in Chile: eg.Proof of employment from your employer, salarystatements the last 3 months, any contracts thecompany has with Chilean companies.

Visa de Residencia Temporaria DependienteAll dependents of the applicant of the Visa deResidencia Temporaria Titular may receive theVisa Residencia Temporaria Dependiente uponpresentation of the marriage certificate and thebirth certificates of the spouse and any children.It takes approx. 2 months to process the visa.Dependents may not work unless they apply toobtain the Visa Temporaria Titular

3. Subject to Contract Visa (Visa Sujeta a Contrato)

* Most common work visa for hiring foreignersunder contract for Chilean companies* The employment contract must include amonthly base pay of at least 100,000 pesos, aclause stating that you will not start workinguntil the visa or a Special Work Card is issued,a clause stating that the employer will pay yourreturn ticket when the contract ends and anagreement for the withholding of taxes.

* Valid for two years, but only as long as youhold a binding employment contract. When thework contract terminates, you have a 30 daysbefore you are required to leave the country orto find new employment.* takes about 2 – 3 months to process, but youcan apply for a Special Work Card to beginworking before the process in completed* The cost of the visa varies according tonationality.* Documents required: A notarized copy of workcontract; 2 photocopies of the applicant’spassport; 2 photocopies of their Tourist Card(Entry Card filled out on arriving at the airport)and two 3 x 2 cm photographs with the nameand passport number of the applicant.* Dependents are permitted to stay in the countryunder the terms of the Subject to Contract Visaon presentation of photographs, passports, acopies of the Tourist Cards, marriage certificateand birth certificates in order to obtain a visa fora spouse and children. Dependents may not workunless they obtain a separate visa.

4. Student Visa (Visa de Estudiante)

* Allows foreign citizens to study at a school oruniversity in Chile.* The student must enrol in a school first beforeapplying for the visa* Valid for one year and can be renewed onpresentation of current enrolment at the end ofone year.* The visa does not allow the student to work,unless they apply for a separate visa.* The cost of the student visa varies bynationality.* Documents required: two photocopies of thepassport; copies of data page of passport; two3 x 2 cm. photographs with name and passportnumber written on the back, proof of enrolmentand proof of income or savings.

Further info:www.registrocivil.cl(for full list of Civil Registry Offices)

Other useful addresses:www.santiago.cl

Visa and documents

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Application office for all visas:

Departamento de Extranjería (Department ofForeign Affairs)Agustinas 1235, 2nd floorSantiago

Office hours:Monday to Friday 08:30 - 14:00 hoursTel: 550-2484; 550-2488; 5502485; 550-2493Telephone times: mon-thurs 15:30-17:30, Fridays15:30-16:30

Website: www.extranjeria.gob.cl/

Further info:www.tramitefacil.gob.cl

Step 2: Registering Your Visa with the PoliciaInternacional (International Police)

* Once you receive your visa, it must beregistered at the International Police within 30days and then your can apply for a Cédula deIdentidad (Chilean Identif ication Card)* Documents required: passport; three passportsize photographs bearing your name andpassport number; copies of the data page of yourpassport.* The International Police will issue you aregistration card, "Certificado de Registro deVisa" which you must take to a Civil RegistryOffice (Registro Civil) to apply for a Chilean IDcard* Address:Policía Internacional (International Police)General Borgoño 1052IndependenciaTel: (2) 737-1292Opening hours: Mon.-Fri. 8:30 - 17:00 hrs

Step 3: Applying for the Cédula de Identidad(Chilean ID Card) from the Registro Civil (PublicRegistry Office)

* The Chilean ID Card is the official form ofidentification, which means that every personin Chile is required to carry an ID card at all times. It is used for everything from signing officialdocuments to paying by credit card* A full set of finger prints and a digital photowill be taken at the office* For children, it is a lot easier if both parentsare present to sign the papers.* Documents required: "Certificado de Registrode Visa" from the Internacional Police; passport;copy of the data page from passport; copy of thevisa stamped in your passport; photocopy of thedate of entry stamp into Chile in your passport,several passport size photos.* The “Certificado de Registro de Visa” will bestamped and you will relieve a slip of paperstating that your ID card is being processed* The ID card will be ready for collection fromthe Civil Registry Office within a few weeks.

Oficinas de Registro CivilVitacura: Avda. Bicentenario 3800Las Condes: Avda. Apoquindo 9071 (Los Dominicos)Alameda: Huerfanos 1570La Reina: Av. Larraìn 8580Macul: Exquiel Fernàndez 2899Providencia: Miguel Claro 543

08:30 - 14:0008:30 - 14:0008.30 - 15.0008.30 - 15.0008.30 - 15.00

Company set-up

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Step 1: Which type of business entity suits yourneeds?

There are many different types of companyentities to choose from, but a Sociedad Anónima(S.A.) and Limitada are the most common types.Write down the future needs of your businessenterprise and then discuss the best alternativeswith your lawyer. A good lawyer should be ableto explain ful ly the advantages anddisadvantages of each type of business entityand advise you correctly. Below is a briefsummary of the two main types of companies.

a) Sociedad Anónima (S.A.): Corporation

* Results from the forming of a single equitycontributed by at least 2 founding shareholderswho must enter into an agreement stipulatingthe general provisions that will constitute itsby-laws.* Each partner or shareholder may be anindividual or a legal entity and the corporationcan be private or closed “Sociedades AnónimasCerradas” or publicly traded. (“SociedadesAnónimas Abiertas )* Administrated by a Board of Directors. Thereis an ordinary (annual) shareholders meeting,

Please Note

* All types of foreign investments in Chile must be conducted through a Chileanregistered business entity.* The company By-laws and all legal documents will be written in Spanish, makesure you fully understand the implications of this.* It is worth investing in a good Chilean lawyer that preferably speaks fluentEnglish, to set-up the company for you. Make sure he fully explains the legalrequirements and ask him for written information on the different type of businessentities in Chile.* To set-up a company in Chile, at least one of the founding partners has to havea Chilean ID card with a residence visa and work visa for Chile. If this is not thecase, alternatively you could ask the lawyer to set-up the company and transferall the rights when you have all your documents in place.

and extraordinary shareholders meetings cantake place whenever the needs of the S.A. or thematters contemplated in the by-laws so require.* There is no minimum capital requirement forthe incorporation of a S.A.* Dividends can only be paid out of net profits ofthe fiscal year or those that have been dulyretained; provided there are no accumulatedlosses. A S.A. must distribute every year as acash dividend at least 30% of its net profits,unless otherwise provided for in its by-laws.Dividends are paid to those shareholdersregistered as such at least five days prior to thedate fixed for such payment.

Registration process for a Sociedad Anónima(S.A.):

1. A public deed containing the company By-lawsof the S.A. is signed and notarized by the PublicNotary.

2. A summary of these statutes, duly notarized,must be filed with the Register of Commercethat corresponds to the corporation's domicile.

3. The summary must be published once in theOfficial Gazette.

Company set-up

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4. Both the filing and the publication must bemade within sixty days of the date the deed issigned.

5. The process takes approx. 6-8 weeks aftersigning.

b) Responsabilidad Limitada (Ltda.):

* A partnership of at least 2 members in whichthe partners may limit their liability to theirrespective amount or a greater amount as setforth in their partnership agreement bylaws.* Partners are not liable for the partnership'sobligations or the liabilities to third parties.* There is no minimum capital required; howeverthe company will be automatically dissolved ifthere is only one member.* The administration can be quite flexible to meetthe needs of the partners. For example, simplygranting one or more of the partners a generalpower of attorney with general authority to runits business; or creating a Board of Directors toadopt major decisions and executives grantedvery specific powers.* Annual profits may be distributed without firstrecouping the losses of previous years. Loansto members are treated as distributions of profits.

Registrat ion process for a Limitada:

1. A public deed containing the partnershipagreement (the By-laws of the Limitada) is signedbefore and f iled with a Public Notary.2. Any changes or subsequent amendments canonly occur by the unanimous consent of allmembers and as a consequence requires anamendment to the original public deed.3. A summary or abstract of which shall be filedwith the Register of Commerce and published inthe Official Gazette.4. The process takes approx. 6 – 8 weeks aftersigning.

Step 2: Finding a lawyer:

* Use any available network and ask them abouttheir experiences with lawyers* Contact the local Chambers of Commerce* Contact the Norwegian Embassy* Prices for Lawyers: Approx. USD 150 – 250 perhour* To establish the company, you may well beable to arrange a fixed price for the work.Depending on the complexity of your companyset-up, expect to pay in the region og USD 3 000to establish the company. There are a numberof fees that need to be paid to the Chileangovernment (registration, publishing, etc.) ofapprox. USD 1 000 which may or not be includedin your lawyers fee.

Step 3: Finding an accountant:

Getting a good accountant should be a majorpriority for your company. Use your network toshop around to find an accountant that is suitablefor your needs. They will help you when dealingwith the Servicios de Impuestos Internos,ensuring that your IVA (Impuesto de ValorAgregado) known as VAT in English is paid ontime every month and all other monthlypayments. If you do not pay your taxes on timein Chile, you automatically receive a fine for non-payment. It is normal to grant your accountantsome powers of attorney representing you onbehalf of the Servicios de Impuestos Internos.Accountant fees can vary between 100 000 – 200000 CLP and upwards, depending on the size ofyour business and the volume of your accountingactivities.

Company set-up

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Step 4: Getting the company RUT number: ROLUNICO TRIBUTARIO (RUT)

1. The company has to have completed thecompany registration process2. The company needs to appoint a legalrepresentative with sufficient powers to actbefore the tax administration system. Inparticular, this representative must beempowered to legalize, fill in and sign Form F4415for Inscripción al Rol Único Tributario y Declaraciónde Inicio de Actividades (Registration of TaxIdentification Number and Business Start-UpStatement) and Form F4416 for updating and/ormodifying the registration of the RUT and thebusiness start-up statement, as well as toreceive legal notices and be summoned tomeetings by the tax administration system(Servicio de Impuestos Internos). These formscan be downloaded from the SII website at .3. To be able to complete this process, theapplicant must be a resident of Chile, producetheir Cédula de Identidad (Chilean ID Card), copiesof their work contract with the company, copiesof the company By-laws, copies of their powersof attorney – all of course have to be certifiedcopies by the Public Notary.4. At first you will first receive only the number,later you will receive a RUT tarjeta which youmust present each time you are buying anygoods for the company. Without this card or anotarized copy of this card you will NOT be ableto purchase anything by factura (invoice). Makesure you make several notarised copies of thiscard to give to staff in charge of purchases.

Step 5: Renting an office

1. This can only be done when you have acompany RUT number2. Ask the porter or receptionist at the entranceof office buildings, they are often the first to knowif an office is going to become available..Alternatively look in the property pages of ElMercurio, or ask a Corredora de Propiedades(Estate Agent) to help you find an office.3. Prices of offices vary tremendously, but youoften get what you pay for. A small office in anice area, approx. 60 m2 may cost you about600 000 CLP per month excluding the commoncosts shared by all the offices (approx. 100 000CLP per month)4. You will need to present the original companyBy-laws or notarised copies, the powers ofattorney of the company; the RUT number,personal Cedula de Identidad of the personapplying for the office lease; copies of your last3 IVA declarations (VAT declarations for the last3 months) and possibly copies of any facturasyou have sent to client the last 3 months.5. If this is the first time you are renting an officeand the company is newly established, you willbe asked to provide a Guarantee for the company. This person or company will be asked to supplyadditional information for financial security.6. Office contracts run usually for a minimum of1 year, with 2 or 3 months notice if you wish tocancel your lease at the end of the first year.7. Carefully read through the terms and conditionsof your contract, many contracts have heavyfines for late payments, the leasing amount isoften quoted in UF’s

Useful Adresses:www.tramitefacil.gov.cl

Registro de Propiedad y Comercio:Conservador de Bienes Raíces de Santiago (CBRS)Morandé 440, SantiagoTel: (2) 390 0800Opening hours: Mondays 10:00 – 19:00 hrs,Tuesdays to Fridays 08:30 – 14:30 hrswww.conservador.cl

El Mercurio Online: www.emol.clwww.portalinmobiliario.com(portal of estate agents)

Banking

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Opening a company bank account:

There are many different banks in Chile tochoose from including Banco de Chile, SantanderSantiago, Banco de Estado, BCI, BBVA. It isworth shopping around and speaking to severaldifferent banks to find out which ones bestserve your needs according to your type ofbusiness needs, the needs and locations ofyour clients and the extent of your internationalbusiness transactions.

To open a company bank account you will needthe following:

* RUT-number of the company* Carnet de Identidad (ID card) proving yourresidence permit etc (also bring copies of bothsides of this)* provide passport size photos* By-laws of the company (Escritura públicaConstitucíon, Extracto de constitucíon,Publicacíon Diario Oficial, etc.)* Any tax declarations (declaraciones deImpuestos) of the company* Powers of attorney (poderes legal)

You will need to sign many different applicationforms and give your fingerprint. After signingthe application forms, the bank will begin theapproval process of the company By-laws usingtheir own lawyers and they will let you knowwhen the account number is ready.

Please Note:Opening a company bank account takes time – do not be surprised if it takesseveral weeks after you have signed all the papers before you have access toyour bank account and you may have to wait even longer to receive your chequebook and the PIN numbers for your account.

Methods of payment:

1.by cheque2.directly payment into an account3.electronic transfer by Internet4.“Vale vista” – this is a form of credit note postedat a bank on behalf of a company. The companywill inform you which bank the use and the legalrepresentative or person with the power ofattorney will need to go in person to the bank toreceive the amount due. If you are not registeredwith this bank, they will ask you for the By-lawsof the company, the powers of attorney, yourCedula de Identidad, the RUT number of thecompany and the invoice for the payment duefrom the company.5.Telephone bills, electricity bills etc are oftenpaid at “Servi-Pag” booths situated in manyshopping malls and near major supermarkets.These are open until 6pm and will even cashcheques for you.

Banking hours: 09:00 – 14:00, but you can oftenarrange meetings with bank executives in theafternoon.

Company Administration

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Issuing Invoices (facturas) for products andservices:

1. Alter you have received your company RUTnumber, you need to register the start of yourbusiness activities as follows:

* First complete the registration iniciación deactividades with the Sii (Servicios ImpuestosInternos). Your accountant will normally dothis for you either in person at the tax office oronline . This registration has to be done withinthe first 2 months of beginning your businessactivities.* You will be asked present your company By-laws and a registered company address foryour business activities (including your leasingcontract)* The company address will be verified (the taxauthorities usually visit the office address tocheck that you exist)* After a number of forms are completed andstamped, finally you will have completed theregistration process.

Please note:Processes for everything in Chile take a lot longer than you expect! Make sureyou allow enough time. Processes that normally take maximum one day in othercountries may well take several weeks in Chile. Here are some examples:* Arranging for installation of telephones and Internet: they may come to youroffice within 2 days to do the contract but getting them to do the installation maytake several weeks. Often you will only be allowed to ring numbers in Santiagoand not to mobile phones for at least another 7-10 days after this.* Opening a bank account: see section 6 on length of time required to open anaccount* Arranging contracts with service providers - it may take a week or more beforeyou receive your password.* Allocation of time

2. Company Invoices (facturas)

* With the company RUT number, officialregistration of the start of your businessactivities, official address and company By-laws you can proceed to register for issuinginvoices.* There are 2 types of invoices: paper (the norm)and electronic (recently introduced). It isadvisable to ask your accountant to do theregistration process for you. With the paperinvoices, you will first need to produce an officialbusiness invoice format with the companydetails and RUT number, this is then sent to aprinter, after which your accountant will needto take these to the tax office to be officiallystamped. Normally you will receive 10 invoicesstamped and ready for use the first time, afterwhich you will receive more invoices each time.* If you change your address, you are requiredto change the address on your invoices* Normal payment conditions is 30 days, but itis possible to ask for the payment earlier if therecipient agrees to this (write this on theinvoice).* Paper invoices are in 4 parts – 2 of these aresent to the client, one is for your own accountsand the other is for the tax authorities.* VAT or Impuesto al Valor Agregado (IVA) is 19%,which in most cases you will have to add on tothe price of your goods or services.Ê* When payment is received from a client, thishas to be confirmed by signing on the originalinvoice.

Company Administration

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Chile and the Tax Authorities

Income TaxIt is important to talk to your lawyer andaccountant about the ruling that affects yourtaxable income in Chile. In general however, allindividuals domiciled or resident in Chile aresubject to personal income tax on their worldwideincome.

Income Subject to TaxTaxable income from employment includes anytype of remuneration received as described in anemployment contract, and includes any specificbenefits including entertainment expenses.Accommodation etc. provided by employers areexempt from tax, as are family allowancepayments, social security benefits establishedby law and severance payments within certainlimitations.

Paying your taxes* Taxes are paid monthly in Chile with fixeddeadlines for payments.* Companies receive a tax reduction when theypay their taxes using the Servicio ImpuestosInternos website (www.sii.cl)* The fixed schedule for payments is availablefrom the tax office or ask your accountant to giveyou a copy.* Late payments (even one day late) receiveautomatic fines, the fines are quite high and havepotentially serious consequences for yourcompany.

Please Note:* There is NO margin of error allowed on invoices. This means that all invoiceshave to be completed 100 % correctly. If you do make any mistakes, it is betterto declare the invoice invalid and begin with a new one.* To be sure that your clients receive your invoice, it is better to either deliverthem in person, or sent them as registered mail. According to Chilean Law,recipients have a certain number of days to contest the invoice before it becomesa legally binding document.* Chileans can be very slow to pay their bills, ask your accountant and lawyerabout the Chilean Laws that cover this issue and it is worth considering this issuewhen you are negotiating your contracts with clients. It is possible to set a %on any unpaid bills using a scale published daily in the newspapers. Alternatively,there are several companies which offer services to receive non-payments ofinvoices and register these companies on a national list of blacklisted companies.

Driving in Chile

Drivers license

An international driver's license is allowed fordriving in Chile by tourists only, and is onlyavailable from your home country - usually fromthe ma jo r automob i le assoc ia t ions .

If you are a temporary or permanent resident, youshould apply for a Chilean national driving licensefrom the local municipality (Registro Civil). Youwill need to your Cedula de identidad, a validdriving license, some passport-size photos,Certificado de Antecedentes certifying that youhave not had any previous traffic violations orserious accidents.

The rules for receiving your licence vary from eachmunicipality, some require a proof of residencefor that specific municipality, or require you totake a test in your own car, or using some testsinstruments in their office as well as a writtentest in Spanish. It is best to check with your localRegistro Civil for their procedures. When you havesuccessfully passed the tests, you will receive aCertificado de registro to be given to the RegistroNacional de Conduct

Company Administration

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Car tax & Insurance

There are 2 types of car insurance: permiso decirculacion one is paid yearly by everyone at theRegistro Civil or at special booths set-up for theoccasion (everybody has to pay by the same due-date). In addition, car insurance (seguro) isavailable with different levels of coverage from avariety of insurance companies.

Staff

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Work contracts:

1. basic facts:-The contract should be written in Spanish-The terms and conditions should include:§ -the place and date of the contract and

date of employment)§ -employee ID details (nationality, date of

birth, address)§ -the nature and location of the work§ -the amount, form and period of

remuneration§ -the length and distribution of the working

day§ -duration of contract§ -any other points which the two parties

wish to be specified-The contract of employment must be preparedin two copies

2. Working hours: The monthly wage is basedon a 45 hour working week, or less. Workinghours are normally from 09:00 to 18:00, with a30 minute break included.

See www.mintrad.cl for more info about workinghours, vacations etc.

Please Note!It is worth asking your lawyer and your accountant to help you with the typeof work contracts you will require and to set-up the system for the monthlysalary payments, health & pension payments and taxes. The type of workcontract (and salary levels) will effect the compulsory payments to beadministered.

3. Salaries: some guidelines:(exchange rate 14/03/06)

minimum monthly wage 127.500 CLP 1605 NOK

local executive 600.000 - 2.000.000 CLP 7553-25.178 NOK

Skilled and experiencedworker and executives ininternational companies

3.000.000 CLP and more 37.767 NOK and more

Technicians – dependingon the type of job

300.000 - 1.500.000 CLP 3777 - 18.883 NOK

Secretary – depending onknowledge of languageand IT

300.000 - 600.000 CLP 3777 - 7553 NOK

Multi-lingual chiefsecretary

Up to 1.000.000 CLP 12.589 NOK

“Junior” 250.000 CLP plus

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4. Gross (Bruto) and Net (Liquido) payWhen negotiating with a potential employeeabout their salary level, it is important to statewhether the amount you are offering is a Netpay (that is that the amount they will receive intheir hand and the contributions to thegovernment are on top of this pay), or you areoffering a Gross pay where all the deductionsare taken from this amount and they receive alower amount in their hand. It is always easierto offer employees a Gross pay due to normalfluctuations of the UF value, it is easier tocalculate using the Gross amount.

5. Contributions & Reductions:

There are a number of compulsory contributionswhich are the responsibility of the employee,but which are paid by the employer. These areas follows:· Contributions are for a Pension Plan (AFP)(approx. 12.40% depending on plan)· Health Insurance ( Isapre) (7%)· unemployment insurance (0.6% paid byemployee, 2.4% paid by employer)

The salary is calculated as follows:Base Salary+ gratifications*= Total Gross Salary

Minus 12.##% for AFPMinus 7% for IsapreMinus % for unemployment insurance= salary before tax

Minus % tax to be paid*= Net Salary due

Please Note!* Chileans employ more secretaries and administration staff than what weare used to in Europe* Often companies employ a “junior” to deliver documents, pay bills, and collectcheques

*Gratifications:Distribution of ProfitsIt is compulsory in Chile to distribute a percentageof the profits among the employees. There are2 methods for doing this; the company can eitherdivide 30% of its net taxable profit (with someadjustments), or pay each employee 25% ofannual salaries, with a ceiling of 4.74 monthlyminimum salaries per employee

*Personal Income Tax % to be paid:Impuesto Unico a los TrabajadoresThe amount of tax to be paid on earning iscalculated according to a tax scale which isprogressive and ranges from 0 – 45 % based on“tax units” whose value MTU (Monthly TaxableUnite) varies monthly accoding to the consumerprice index and UF rate. These rates are publishedmonthly both in newspapers and is also availableon the Servicio Impuestos Internos websitewww.sii.cl (website of the tax authority). Youraccountant will advise you of the necessarypayments and whether all or only some of youremployees need to pay tax on their earnings.Personal income tax rates are progressive andrange from 0 percent to 45 percent levied on "taxunits," whose value changes monthly accordingto the consumer price index variation. This isexpressed as a Monthly Taxable Unit (MTU) andis about Ch$20,673.The only contributions for which the employeris liable are those for work accident insuranceand occupational illness.

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6. Employment of Foreign NationalsUnder the Chilean Labor Code, at least 85% ofthe personnel rendering services toan employer must be Chilean. However,employers with 25 or fewer workers are exemptfrom this requirement. Specialized technicianswho cannot be replaced by national personnel,foreign nationals with Chilean spouses, or withChilean descendants and foreign nationalsresident in Chile for more than five years(disregarding occasional absences) are treatedas Chileans.

7. Annual Leave: vacacíonesEmployees are entitled to an annual paid vacationof 15 business days after oneyear of work. Ten of those days must beconsecutive and the remaining five can beused as agreed upon by the parties. Up to twoyears of vacation time can be accumulated underconsent of the parties. Vacations can becompensated by a cash payment only if theemployee leaves hisjob without having used his vacation time totally.

8. Sick Leave:Employees are entitled to paid leave in the caseof illness or an accident for the time indicatedin a doctor´s certificate. These payment aremade by the ISAPRE (social security institutions)

9. Maternity LeavePregnant women are entitled to six weeks ofpaid leave the due date for the baby and for thefirst twelve weeks after the birth. Thesepayments are made by the State (the socialsecurity) instead of the employer during thisperiod.

10. Termination of employment contractsEmployees have fairly strong rights when itcomes to termination of a contract and they willoften take their case to the Labour Court if theyare not satisfied with the outcome. It is advisableto have a lawyer to help you when you areconsidering terminating an employees contractas there is a very specific format in which thetermination of the contract will be conducted.Both parties are required to sign a terminationagreement (Finiquito).

Postal servicesUseful addresses

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Correo de Chile

There are post offices and small branches allover, often including petrol stations. It is a goodidea to send important mail by registereddelivery to ensure that your documents arrivesafely. The postal service is reliable but oftenmuch mail arrives later than expected and it isnot uncommon to receive telephone bills andelectricity bills after the due date. These typeof services are very quick to cut-off your supplywhich can be very frustrating.

Using “the junior”

The most common way of getting documentsdelivered is by using the office “Junior” to delivermail locally, collect cheques, make paymentsetc. This is a great solution to administrationlogistics for business located in the city andhelps ensure your clients receive the correctinformation on time.

Important addresses:

Correos de Chile +56 2 6994008Chile Express +56 2 800200102DHL +56 2 800802727

www.correos.clwww.chilexpress.clwww.dhl.cl

Postal servicesUseful addresses

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The Norwegian Embassy in Santiago San Sebastián 2839, oficina 509Las Condes, SantiagoPhone: (0056-2) 234 2888Fax: (0056-2) 234 2201E-mail: emb.santiago@mfa.noOpening hours: Monday to Friday 09:00 - 12.00 hrswww.noruega.cl

The Chilean Embassy in Oslo Meltzersgate 50257 OsloPhone: 22 44 89 55Fax: 22 44 54 96E-mail: embassay@chile.noOpening hours: Monday toFriday 14.00 – 16.00 hrswww.chile.no

Ministerio de Relaciones Exteriores Catedral 1158, Piso 3(The Chilean Foreign Ministry) Santiago

Phone: (0056-2) 679 4200E-mail: info@minrel.clwww.minrel.cl

Comité de Inversiones Extranjeras Teatinos 12, piso 10(Foreing Investment Committee)SantiagoPhone: (0056-2) 698 4254Fax: (0056-2) 698 9476E-mail: investment@cinver.clwww.cinver.cl (*)www,foreingnvestment.cl (*)

Servicio Nacional de Pesca Victoria 2832(SERNAPESCA)ValparaísoPhone: (0056-32) 819 441Fax: (0056-32) 256 311E-mail: sernap@chilesat.net

www.senapesca.clSpanish only

Subsecretaría de Pesca Oficina Central: Bellavista 168, piso 16

ValparaísoPhone: (0056-32) 502 700Fax: (0056-32) 502 801

Oficina Coordinacion:Teatinos 120, piso 11SantiagoPhone: (0056-2) 671 6620Fax: (0056-2) 671 814E-mail: sernap@chilesat.netwww.subpesca.cl

Postal servicesUseful addresses

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CONAMA Comisión Nacional del Medio Ambiente,(The Chilean Environmental Office) Obispo Donoso 6Providencia, SantiagoE- mail: informaciones@conama.clwww.conama.cl

SHOA Armada de Chile(The Chilean Navy´s Hydrographic and Marine Institute)Malgerejo 59, local 5Valparaísowww.shoa.cl

The Norwegian-Chilean Dave LawsonChamber of Commerce Puerta del Sol 55 Piso 9

Las Condes Santiago - Chile Phone: 56-2-3363502 Fax: 56-2-2066140 +56 (02) 208 30 20

E-mail: info@ccnc.cl

Innovation Norway Akersgata 13Phone.: +47 22 00 25 00Fax: +47 22 00 25 01E-mail:post@invanor.noPostal address:Innovation NorwayBox 448 SentrumN-0104 Oslo

DNB NOR Chile DNB NOR Bank ASAChile Representative Office

Tom RingsethChief RepresentativePhone: + 56 84290559E-mail: tom.ringhet@dnbnor.com.br

Eksportfinans Dronning Maudsgt. 15Postbox 1601 Vika0119 OsloPhone: +47 22 01 22 01Fax: +47 22 01 22 02http://www.eksportfinans.no

BRANDaboutStrategic Marketing & Design and ExportServices

Av. Kennedy 5735Santiago, ChileContact: Jane HusebyPhone: (0056-2) 481 10 81From Europe: (47) 674 20 154E- mail: jhuseby@brandabout.no

Postal servicesUseful addresses

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GIEK (The Norwegian Guarantee Dronning Maudsgt. 15Institute for Export Credits) Postboks 1763 Vika

0122 OsloPhone: ++ 47 22 87 62 00Fax: ++ 47 22 83 24 45E-mail: giek@giek.nowww.giek.no (*)

Banco Central Augustinas 1180(The Chilean Central Bank) Casilla 987

SantiagoPhone: (0056-2) 670 2000Fax: (0056-2) 670 2099E-mail: bcch@bcentral.clwww.bcentral.cl

The Chilean breeding association. Information on relevant regulatives, statistics etc.

Produced and edited for CCNC + The Royal Norwegian Embassy by BRANDabout S.A. www.barndabout.no2006 Cpopyright all rights reserved