En case of voluntary liquidation you can close a company in Chile temporarily, without making a decision on liquidation in the charter. In such cases, the company will be able to resume commercial activity at any time. Closing takes place only in the Chilean Tax Service, which will require clarifying or paying any tax arrears, providing an interim balance sheet and handing over the stamped tax documents.
Or it is possible to close the company forever. In this case, in addition to closing all issues with the tax, a protocol of the meeting of participants (partners) of the company on voluntary liquidation and the publication of this protocol in the official gazette will be required.
In addition, you need to close the municipal permit for the activities of your business, otherwise the municipality will continue to send bills. In the case of non-payment of which, the debt of the company’s founders to the Chilean Treasury Dept will continue to accumulate.
Than untimely closing of the company in Chile is fraught. It is sometimes difficult to close a company, there are often firms without employees and transactions, and although they do not pay taxes, they still have to submit zero reports. In cases where zero reporting is submitted for more than 12 months in a row, the tax authority has reason to close the company unilaterally. But in practice, this case is extremely rare, it is more profitable for the Tax Service to write out fines every month for not reporting.
In Chile, even a non-operating company must submit monthly and annual declarations, balance sheets and declarations to the tax. The penalty for untimely filed zero declaration is approximately one UF. And for example, unpaid taxes have a penalty rate of 100%. These fines and debts are accumulated. And the moment comes when the Chilean Treasury Department impound the debtor’s property, blocks payments and a bank account.
The same applies to real estate taxes, the treasury annually exposes hundreds of real estate properties to the auction, in cases where the owners have not paid the property tax.