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Americas

Starting a business in Chile

Plan Basics

Overview

Purchasing Products
All Amway Business Owners and Clients purchase products directly from Amway.

Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check unless direct deposit is requested. Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

PV/BV Transfers
PV/BV transfers are not available.

Single Line Of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
– Cross border sponsoring allows for personal sponsoring in all markets
– ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed
– Combined volume from all markets allows an ABO to reach the 21% level more quickly
– Regional Business Kit
– Regional SIP Program
– Regional Bonus Statement

Performance Schedule

PV Performance Bonus
10000         21%
7000           18%
4000           15%
1,800           12%
600            9%

Retail Margin
Mark up is 25% if less than 200PV and 30% if exceeds 200PV.

how to start

Starter Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years age and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration form (original) by post mail.

This process can also be completed using the Internet site www.amway.cl where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is registered at that moment and he/she can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway Chile within the first 30 days.

Cost of Starter Kit
25,000 Chilean pesos (VAT included)

Sponsoring
In order to register a new Amway Business Owner (ABO), the sponsoring ABO must ensure that all ABOs registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway Chile.

Business Type
In addition to the Amway Business Owners, Amway Latin America established an additional alternative to have access to the Amway Products and Services called Client.

A Client is able to buy Products directly from Amway Chile at a retail price. Clients can not sponsor and bonuses are not received.

DISCOUNTS FROM TO

25%       $00 $155.999
30%       $156.000 en adelante

To become a Client the person can be registered by internet, the 800 number or in the Amway Shop by providing their name, telephone number, e-mail address, name of the ABO who is registering them, in case the person has not been referred and does not an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is no cost to become a client.

A sponsor is required to be register as a client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become clients.

Establish a Second Business

Amway Business Owner Registration Requirements

Please check the following websites for visa information:

www.minrel.gov.cl/prontus_minrel/site/artic/20080619/pags/20080619154024.php
OR
www.extranjeria.gov.cl/

Please check the following websites for information on taxpayer registry (Servicio de Impuestos Internos or SII):

zeus.sii.cl/AUT2000/index.html
OR
www.sii.cl/portales/inversionistas

ABOs are required to have a Chilean address, but an office is not necessary.

ABOs are responsible for complying with any local business, commercial and/or trade authority licensing issues.

Doing business by a foreigner includes but is not limited to selling products, receiving bonuses and sponsoring.

Visa Requirements

Please check the following websites for visa requirements and information:

www.minrel.gov.cl/prontus_minrel/site/artic/20080619/pags/20080619154024.php
OR
www.extranjeria.gov.cl/

It is not necessary to have citizenship to start a second business.

Formation and Registration of Your Business
Any foreign ABO can have a business in Chile as an International Sponsor (as outlined in the Business Reference Guide) or as a Local Sponsor.

As in other countries, it is necessary to define the kind of ABO business is desired:
– A Single Person ABO (we recommend this option), or
– A legal Entity ABO (LLC)

Single Person ABO
Purchase a local starter kit to be sponsored (payment in local currency)

Legal Entity ABO (LLC)
An ABO can choose to be an owner of a legal entity ABO (LLC). In this case, it is necessary to open a Chilean LLC company. The Registration form must be submitted and processed in the individual name(s) of the ABO. The ABO can then request the transfer of ownership to an LLC through the affiliate. Please note the sole purpose of the LLC must be the operation of the Amway business. No other business activity can be conducted through the LLC.

It is necessary to have a Resident person with a broad power of attorney to represent a foreign owner of LLC. The attorney will also act as the legal Representative of Foreign Owner before the Servicio de Impuestos Internos (SII). Same person can be named Administrator of LLC and its’ legal representative.

Contact a lawyer’s office to prepare:
– Articles of association or Bylaws
– Registration with the corresponding Commerce Registry
– Registration with the Servicio de Impuestos Internos (SII)
– Registration with local Municipal authority for the purpose of obtaining a business license/permit

Amway recommends that you consult qualified professionals and pertinent government authorities to prepare the required documents that need to be filed.

To open an Amway Business the only capital required is the starter kit cost (approximately CL$25,000.00 – approximately US$50.00).

As with your primary business, your second business must be renewed each year with the affiliate.

It is necessary to open a Bank Account in order to receive a bonus from Amway. Along with the mandatory taxpayer number, other documents must be confirmed with Bank Office.

Submit paperwork to:
Amway Chile S.A.
Los Leones 1745-A – Providencia – Santiago

Required Documents for Registration

Please check the following websites for visa information:

www.minrel.gov.cl/prontus_minrel/site/artic/20080619/pags/20080619154024.php
OR
www.extranjeria.gov.cl/

Please check the following websites for information on taxpayer registry (Servicio de Impuestos Internos or SII):

zeus.sii.cl/AUT2000/index.html
OR
www.sii.cl/portales/inversionistas

Cost and Bonus Payment

Costs to open and maintain a LLC
– Lawyer and accounting costs
– Tax, books, notarization of documents and other government charges and out of pocket expenses (collected separately).

Bonus Payment
Bonus payments are made through deposit in a local bank account. The ABO should provide bank data, bank account number, and swift bank.

how to order

Ordering

ABOs and Clients can order Amway products from Amway Chile by:

Order Entry, phone 800 365 115

Following the next steps:

– your ABO or Client Number to place an order.
– Confirm that the code number of the Products is correct when you are ordering; you can verify this number in the price list.
– Have handy the address where you wish Amway Argentina to deliver your order. This address has to be within the country of Chile.
Hours of Operation:
9:00 am to 9:00 pm. Monday through Friday
9:00 am to 3:00 pm. Saturday.

Internet Orders

You can also order products through our web site: www.amway.cl

Amway Shops

Located in Los Leones 1745-A – Providencia, Santiago.
Phone numbers: 56-2 250-6024/250-6012.
Hours of Operation: 10:00 am to 7:00 pm. Monday through Friday.
10:00 am to 1:00 pm. Saturday.

Payment Methods

Order Entry and Internet Orders
Credit Card (American Express, Diners, Mastercard and Visa)

Amway Shops
– Credit Card (American Express, Diners, Mastercard and Visa)
– Cash
– Bonus Check

Returns/Refunds

Sales Kit and Products returns will be accepted 90 days from date of purchase. ABOs and Clients must have the invoice purchase available of those sales kit/products returned.

Products may be returned personally in the Amway Shop or sent by mail to Los Leones 1745-A – Providencia – Santiago.

If the ABOs and Clients are in an overstock situation, it will be necessary the Customer Service Supervisor approval. A 10% handling fee will be charged up to the returns credit.The returns credit will be paid through the bonus check.

how to manage

Access Information

– In person – at the offices through a representative from Amway Business Owner and Customer Service Department
– By phone – 56-2-250 6024/6000
– By e-mail: dac.cl@amway.com

Receive Bonus Payment

Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.

This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.

ABOs, who have earned a bonus, may receive the payment via bank, electronic transfers by registering the bank account.

The ABO must send a data modification informing their bank account number data:
– Bank
– Branch
– Account Type
– Account Number
The titular account name has to be the Amway Business Owner’s name.

If the ABO does not provide a bank account, a check is generated automatically and submitted by post mail to the ABO’s mailing address.

Also the ABO can choose that all the bonus payments earnings will stay in A/R forward so that amount can be use for future purchases.

Renew

All ABOs need to renew their contracts.

An ABO’s initial contract year terminates on December 31, if it is signed prior to August 31, or on December 31 of the next year if the ABO Contract is signed after August 31. The renewal fee and procedures are published yearly in Amway Publications.

Renewal Methods:
– Amway Shop
– Order Entry
– Internet web site: www.amway.cl

Payment Methods:
– Credit Card
– Bank Transfer
– Cash (Only in Amway Shop)

contact

Amway Chile, S.A.

Los Leones 1745-A
Providencia Santiago
Chile

Phone: 54-11-5789-0986
Fax: 56-2-250 6013

www.amway.cl (Public & Distributor Website)
dac.cl@amway.com (Email)

Opened February 1995