First we need to ask, what is a Municipal Patent?
It’s a necessary permission to carry out any commercial activity that needs a permanent location. It’s granted by the municipality where the activity is carried out or the business is located. If our interest is to have a clothing store, we need to have a municipal patent to develop that activity.
There are different types of municipal permits:
- Commercial Patent: the most common of them, it’s required for businesses and general stores.
- Industrial Patent: required for those businesses whose commercial activity is production or manufacturing, such as factories of products or food.
- Professional Patent: a license that must be applied for by people who practice liberal professions, such as lawyers or architects.
- Alcohol Patent: authorization for the sale of alcoholic beverages, is regulated by Law 19.925.
Patents are specific to the activity indicated at the time of request, and if you want to expand the business, you must apply for a patent extension.
Commercial patent application:
The municipal patent must be applied for at the company’s tax domicile, the requirements for which vary depending on each municipality and whether a new patent is applied for, a patent for change of domicile or one for opening a branch office, among others.
In general, there are common antecedents that are requested in every municipality:
- Information related to the constitution of the company and its modifications, certificate of validity, among other documents.
- Tax background: If applying for a patent for the first time, it’s necessary to provide the “Beginning of Activities” certificate before the SII and a compact Form 22.
In case of requesting the opening of a branch, a Capital Distribution Certificate, a copy of the SII Branch Opening Form, and the last payment bulletin of the patent in the municipality of the parent company must be attached.
If the application is for a patent due to a change of domicile, it must be accompanied by Form 22, a copy of the notice of change of domicile before the SII and a certificate of no debt for patents in the previous municipality.
- Documents accrediting the title by which the property is occupied:
If requested by the owner, this is demonstrated by the current Certificate of Ownership.
If the property is leased, the lease must be accompanied by an authorized signature before a Notary Public or by a valid Certificate of Ownership in the name of the lessor.
If requested by the subtenant: both the original lease contract must be accompanied (it must not contain a prohibition to sublease or to assign the use and enjoyment of all or part of the property) as well as the sublease contract.
If the property is used by Authorization of Use, Assignment or Commodity, the document in which this is stated must be accompanied, authorized before a Notary or with a Certificate of Current Domain.
- Feasibility Report, Building Permit, and Final Reception of the property, all granted by the Direction of Works of the corresponding Municipality.
It also requires a permit from the Directorate of Works called Certificate of Prior Information, which indicates that the place where it is intended to develop the business is suitable for it.
And in certain specific cases, permits from other entities are also required, for example, a Sanitary Resolution issued by the SEREMI of Health of the corresponding region is required for perishable food stores.
If what is requested is an Industrial Patent, the documents indicated for the Commercial Patent must be submitted, with additional antecedents, these depend on the activity that is sought to develop and the Municipality before which the patent is requested. It is recommended to consult the municipality directly.
Value and validity of the Patent:
The regulations on this matter state that patents are valid for 1 year and give the municipality the power to set the annual value of these in an amount between 2.5 x 1000 and 5 x 1000 of the equity of each taxpayer, declared before the SIII, establishing as minimum value of the patent 1 UTM and maximum 8000 UTM.
The payment is annual, and its price varies in each municipality, with most municipalities having the semester payment method.
In the case of the patent of Alcohols, its price is fixed by the Law of Alcohols, varying between 0.6 UTM and 4 UTM.
Article written by Camila Díaz, attorney from Vivir en Chile.