Category: Startup Chile

How To Apply for Chilean Permanent Residence Visa

Chile just approved my Permanencia Definitiva or permanent residence yesterday so I thought I’d share the steps you need to take you successfully get your visa. If you’re looking for temporary chilean visa info, check my previous post.

The entire process takes 6-7 months from when you first apply to when it’s granted or denied. They accept english applications, but in my opinion it makes sense to translate everything. If your spanish is bad, pay someone to translate your application.

Step 1 – Review Previous Visa Requirements

You must have already had a temporary visa for at least one year and have spent at least six months of that temporary visa in Chile. If you don’t meet this criteria, you must apply for another temporary visa. You’re only able to apply for a temporary visa twice, after that you must apply for a permanent residence. If you don’t meet the previous visa requirements, the extranjeria tells you you should apply for the permanent residence anyway and then appeal if it’s denied.

Step 2 – Review Application deadlines

You can first apply 90 days before your temporary visa expires. Do this as early as possible to minimize time you have with an expired carnet. More on this later.

Step 3 –  Go to Extranjeria website to pick your visa type

If you have your own business, Inversionista is likely the best one for you, but there are many other options. If you get confused or don’t know which one best fits your criteria, go to extranjeria in person and ask. They were very helpful every time I went and had questions.

Step 4 – Review the requirements.

Here’s the requirements for Inversionista. You can find the rest of the requirements for permanent visas here.

Step 5 – Fill out forms

Download the current Residencia Definitiva document (pdf) from Extranjeria and fill it out.

Step 6 – Get Certificado de Antecedentes from Registro Civil

You can do this online if you’ve already registered in the system or you have to go to a Registro Civil in person.

Step 7 – Get Certificado de Viajes from Policia de Investigaciones (PDI)

This document shows how long you’ve been out of the country during your last visa. Go to PDI offices at Morandé 672. This tramite costs CLP$800 and you usually have to wait at least an hour, sometimes more. It’s open from 830-1400.

Step 8  – Get all your paperwork

  • Copy of both sides of your carnet
  • Copy of certificado de registro. You can use your certificado from last year or pay another CLP$800 from the PDI to get a new one when you’re getting your certificado de viajes.
  • Copy of your passport with all ID pages and any pages with Chilean visas or stamps. I just copied the entire thing.
  • Three 3×2 color photos with your name and rut

Step 9 – Write your personal statement

You need to write a personal statement why you’d like to stay in Chile. I included my resume, everything I’ve done in Chile, any press clippings from Chilean newspapers and my plans to stay in Chile, plus bank information showing that I would not become dependent on the state if they granted me the visa. My packet was about 15 pages long and the clerk in Extranjeria told me it was more than enough. Most people write a page and that’s it.

Step 10 – Get business documentation (if Inversionista)

If you’re doing the Inversionista visa for your own company or if you are an independent contractor you need to prove you are making money and have assets in Chile. You’ll need:

  • Copy of operating agreement (Escritura) of your Chilean company
  • Certificado de inicio de actividades from SII
  • Your company’s last 8 IVA payments
  • Your company’s last “balance tributario”
  • Your company’s last “declaracion de renta”
  • Proof you’ve paid your company’s patente
  • Proof that you actually own stock in the company

If you’re doing it as an independent contractor (emits boletas), you need to prove the same things as above, but with your own personal records.

Step 11 (optional) – Take everything to Extranjeria for a review

The clerks at Extranjeria are happy to go through your paperwork with you and tell you if everything is in order. I did this and realized I was missing a form, so for me it was worth it.

Step 12 – Mail all of this via Correo Certificado to:

SEÑORES:
SOLICITUD PERMANENCIA DEFINITIVA
CLASIFICADOR N° 8
CORREO CENTRAL
SANTIAGO

Step 13 – Wait for “Visa en Tramite” temporary 6 month visa.

Extranjeria says it will take 45 days and mine took exactly 45 days. If your old visa has expired (like mine did), you cannot reenter Chile on your old visa and must pay for a tourist visa if you enter before you get your “visa en tramite” paper work. You can check on your progress on the extranjeria autoconsulta website. Once you’re approved as “en tramite” you can print off your form which allows you to travel on your temporary six month visa.

Note: you must bring that paper with you if you travel, as your carnet will be expired. Make sure you have it on your person, not in your luggage. I made this mistake once and had to convince someone from my flight to get my backpack from baggage claim for me while I was waiting with a PDI agent who was mocking me the entire time.

You will get a letter from Extranjeria that says that your visa is “en tramite” and that you’re allowed to do any legal activity that you used to be able to do on your old visa, but no Chilean entity actually recognizes it, including:

  • Entel
  • VTR
  • Movistar
  • Claro
  • SII
  • Banks
  • Anywhere that requires a valid carnet

Basically you can’t do anything in Chile with your letter because nobody recognizes it. This was the most frustrating part of being between visas. I was carnetless from Nov 15th, 2012 until May 17th, 2013. If you have any official business, get it done before your carnet expires or else you’re screwed.

Step 14 – Pay application fee

You have to pay a fee, depending on the visa your applied for, via bank check at any bank. Mine was ~$50.000 and I had to go in person to my bank to pay.

Step 15 – Wait for approval or denial

It took me another five months before I was approved. You can check again on the extranjeria autoconsulta website for news.

Step 16 – Go to Extranjeria with your visa acceptance form, carnet and passport and get your permanent visa

Step 17 – Go to PDI to register your address and get your certificado de residencia definitiva (CLP$800).

Step 18 – Go to registro civil to get your carnet (CLP$4.050)

Step 19 – Wait two weeks and go back to the registro civil to pick up  your carnet

Step 20 – Drink a piscola to celebrate being a Chilean permanent residence and being done with all of these tramites!

Once you have the visa, you must either visit Chile once per year or you must go to an embassy once per year to renew your visa. If you go the embassy route, you’ll need to come back to Chile once every four years to keep your visa valid, or else you lose it.

Note: please review each step on your own, this is the process I used in 2012/2013 and may change without notice.

Looking for more high quality information about Chile? Check out my book Chile: The Expat’s Guide:

chile expat guide cover

Rethinking Startup Chile 2.0

20120904-start-up-chile-logo
Startup Chile is one of the most innovative government programs I’ve ever seen. Chile’s government wanted to improve it’s entrepreneurial ecosystem, change the culture to support entreprenuership, create jobs and diversify the economy. Instead of investing in infrastructure like expensive research parks or picking a few companies to invest hundreds of millions of dollars, Start Chile gives entrepreneurs $40,000 grants, a visa and office space in exchange for coming to Chile to work on their business. Since 2010 more than 600 teams have come to Chile to develop their business. It’s an unquestioned success.

The culture has improved, Chile’s known for startups, many companies are having success and most of the money is being recycled into the Chilean economy. Entrepreneurs are staying, partnering with Chileans and continuing to find success. After being featured (for free) in every important media outline in the world, the worldwide perception has changed.

Before: Earthquakes, wine exports, fruit exports, rescuing miners. Now:  When I went to South By Southwest, everyone had heard of Startup Chile and talked about Chile as an innovative, startup friendly country.

When I first came to Chile in 2010 a typical conversation with a new Chilean acquaintance was:

Chilean: “Where do yo work?”
Me: “I have my own business.”
Chilean: Quizical look. “So you don’t have a job?”
Me: “No, I have my own business”
Chilean: Confused. “So you’re unemployed?”

Now people say, oh awesome, entrepreneurship, followed by “I have an idea for…” or “my boyfriend, sister, best friend has an idea for…” In 2010 girls I’d meet would turn up their nose at entrepreneurship, be worried and ashamed that they couldn’t explain what “an entrepreneur” did to their friends and parents. Now, while they still prefer someone who works in a big company, it’s at least cool to have your own business.

The program is working and other countries are starting to emulate Chile’s success. Brazil has launched the most credible alternative, but companies have to give up equity to private incubators. I believe Startup Chile could make a few changes to improve version 2.0, if they decide to do it and that other entities should being to copy the model. I doubt another country will be able to do it on a national level because of national politics, finances and beurocracy. That Chile was able to is almost a miracle and a huge credit to SUPs founders. But a state, city or even private foundation in a desirable country like the US, Canada, most of Europe, Australia, etc could iterate on the model and find success.

Creative, innovative, hard working people power our new tech driven economy, relying on an ever shrinking percentage of the population to grow the economy. Cities and countries should be competing to attract this top talent. And an iterated Startup Chile type program is one of the most cost effective policies that one can impliment. Here’s how I’d structure a Startup Chile 2.o, whether it’s on a country, state, city, or even private foundation level:

1. Give entrepreneurs equity free grants in exchange for moving to your city for 4-8 months. Grants can be between $20,000 and $80,000, depending on the incentive needed to get people to move. For example, Chicago is an incredibly livable city and might only need to pay $20,000, whereas Des Moines, IA might have to pay $60,000, and Gary, Indiana, $80,000.

2. Entrepreneurs apply online, but to be selected you must have an in person or skype interview. In person preferred, but skype will suffice. A skype interview would have weeded out many of the maringal Startup Chile entrepreneurs.

3. Judges should be successful entrepreneurs and investors. No academics, government officials or lay people.

4. Favor entrepreneurs with experience, judge on quality of entrepreneur (80%), less on the quality of the idea (20%).

5. Favor entrepreneurs who are attacking a need in the local market. The best Startup Chile companies attack the Latin American market or at least use it as a test market. These teams are more likely to stay after the program ends.

6. Never bring more than 20 teams per month.  SUP currently brings teams in groups of ~50 six times per year. That’s too much. Bring 20 every month to increase networking, camaraderie and even out entrepreneur demand for services.

7. Help with housing, social life and integrating with the city. You want entrepreneurs to stay. Make their lives easy. Don’t let them live in bad neighborhoods and help them with network.

8. Fund entrepreneurs in residence to act as mentors and search for ideas in the local market. Give entrepreneurs time and a bit of money and they’ll find a problem to solve. After I sold Entrustet, I would have loved to get paid a stipend to cover living expenses to come to Chile, mentor SUP particpants and look for ideas. Bring entrepreneurs to your city and watch them work.

9. Require weekly mentorship meetings with EIRs, local mentors and local team. This fosters relationships between the local staff, gets the entrepreneurs more plugged into the city and forces them to have some accountability.

10. You recieve 50% of the money up front. After half of the program, there’s a progress report. ~25% of teams recieve no further funding. They may stay in the program, but don’t get more money. The savings are used for follow on rounds for the top ~10% of companies or EIR ideas.

11. A strong demo day to force entrepreneurs to show what they’re doing publicly and give them press, connections and a taste of being in the spotlight.

12. A private weekly blog to track company progress. Mentors, peers and team can view, comment and give feedback.

13. Alumni tracking. The strongest accelerators (YC, Techstars, 500 Startups), have powerful alumni networks, analytics about previous companies. They know why they failed and succeeded. Use this data to show that the program is working, plus iterate on the model to improve entrepreneur selection.

I would love to see Madison or the state of Wisconsin be the first place in the US to iterate on the model. Whether the funding comes from the city, the state or even a private foundation, I think Madison could do something incredibly innovative for $750,000. That’s a drop in the bucket for the state budget, a bigger commitment for the city, but completely in reason for a private non profit.

I would bring 10 teams to Madison for four months (summer/fall of course) and give them an initial grant of $20,000, help finding office space, a place to live and connections to the local startups. After four months, I’d give the most successful ones a follow on round of $40,000 as a incentive to keep them in town. I’d also bring 5 entrepreneurs in residence to act as mentors and search for their own ideas. I’d hire a staff of 4 to manage the program, rent a small office and get going.

For $400,000 of grants, plus an office and four jobs, you could replicate Startup Chile in Madison. At least half of the $400,000 would likely be spent on local rent, hiring locals and at bars, restaurants and local service providers. For a total of $750,000 you’d immediately create four jobs and jumpstart your economy. After the first round, we could see if it was working. I bet it would be. And then we could iterate some more and expand.

Focus on people and your economy will grow.

Startup Chile Generation 7 Application Help

Startup Chile is opening the seventh round of applications today, March 11th. This application period will open March 25th and run until April 8th and the winners will be announced May 23rd. In the round six application process 1421 startups from more than 60 countries applied for the right to come to Chile for $20m Chilean pesos (US$42,000). Chile invited 100 of the 1421 companies who applied and they began to arrive over the past six weeks.

Startup Chile has become more competitive as the number of applications has grown. This round should have at least 1500 companies from all over the world vying for 100 spots. More than 500 companies have already gone through the program since the pilot round in 2010.

It’s a great program, especially for entrepreneurs who are bootstrapping or already have developed a product but need more time to figure out the correct business model for their business. It’s a perfect fit if you’re looking to target the South American market.

My company, Entrustet, was part of the pilot phase of Start-Up Chile and I’ve been in Chile since November 2010. I blogged extensively about my experiences in the program and in Chile, along with advice on how to get selected for Start-Up Chile. I tracked down the stats from the pilot round companies a year later, which was published on The Next Web. I also wrote Startup Chile 101, the book that will tell you everything you need to know about living, working and doing business in Chile.

Since the third round, I’ve helped startups review their applications and prepare them to get accepted into Startup Chile. Overall I’ve now reviewed, 18 applications for prospective Startup Chile teams and 12 have been accepted.

Round 3 – 6/9 66%
Round 4 – 3/4 75%
Round 5 – 3/6 50%
Round 6 – 3/6 50%
Overall: 15/25 60%

In rounds 5 & 6, 6.8% of applicants were accepted into the program and 5/10 (50%) of the applications I reviewed made it. Two companies had applied two times previously and were accepted after we worked together. Another team needed to completely redo their video and we worked together to make it happen. I thought 2 more of the teams that I worked with completely deserved to make it in, including one that I would have invested in myself.

I can help you craft an application that emphasizes the criteria that the judges are looking for, correct your grammar into perfect English and give you the tips you need to have the best chance at getting selected.

If you need help with your application, please contact me. Editing, writing, review, advice. I charge a small flat fee to review and edit your application, plus a larger success fee if you are selected for the program after I’ve helped you.

Want help? Got questions? Want a quote? Email me: nate at nathanlustig dot com or fill out my contact form.

Note: I WILL NOT write paid letters of recommendation.

I’m Teaching Entrepreneurship at Two Chilean Universities

I’m back in Chile teaching an entrepreneurship class this semester at Universidad Católica in Santiago and Universidad Católica del Norte in Antofagasta. The class, How to Build a Startup, is the latest iteration of the class that Enrique Fernández and six of our fellow pilot round Startup Chile entrepreneurs set out to create back in 2010 when we designed the entrepreneurship class we’d wished we’d had before we’d started our businesses. Our goal is to teach students by doing, not from a book.

Students come with an idea, or even a business they’ve already started working on, and we show them the tools and the frameworks they need to build a fully functional, tested, validated launched business by the end of the semester.

Enrique and I have been creating the material and getting ready for the past few weeks.  I’ve advised the class and mentored students in previous semesters, but this is the first time I’m actually teaching full time. My first class was this past Wednesday and I can already tell it’s going to be a really fun semester. I’m going to be writing a post each week about what we’re doing in the class and sharing our assignment in hopes that those who can’t attend the class can follow along here.