Closing a Foreign Invested Company in China
Hotline: 86-755-82143422, 13823131503
Email: tannet-solution@hotmail.com
China company termination, namely, close a company in China, is of great importance. Failure to properly liquidate and deregister a foreign-owned company in China can have dire consequences for the parent company, and for the Legal Representative of a WFOE. Below is the general procedures on how to terminate a foreign invested company in China.
Termination Procedures
The following is an overview of the procedure for termination and de-registration of a foreign-invested enterprises.
1. Procedures for liquidation
(1) submit application for termination to relevant authorities;
(2) public announcement and notification of creditors of intentions to liquidate assets;
(3) produce the procedure and principles for the liquidation of assets and nominate candidates for the liquidation panel;
(4) panel to determine the assets, creditor's rights and debts of the enterprise, provide a statement of assets and liabilities and catalogue of properties, propose the basis for assets evaluation and computation, and set forth the liquidation plan;
(5) once all debts are paid, the remaining assets (if any) shall be shared among the original investors based on the relevant provisions of the contract and articles of incorporation;
(6) provide liquidation report to the board of directors for adoption;
(7) submit liquidation report to the reviewing and approving authorities for approval;
(8) de-registration and return the business license of the enterprise for revocation.
2. Procedures for de-registration
(1) apply for tax de-registration;
(2) submit the liquidation report issued by a Chinese chartered auditing firm;
(3) submit the auditing report and the related documents to the tax bureau officer for approval;
(4) submit certified approval to the Tax Bureau in the relevant district;
(5) obtain approval from the tax bureau, and resulting certificate issued by the tax bureau officer certifying the completion of the tax payment;
(6) if the company is engaged in import and export, additional documents are required certifying the completion of tax payment from customs;
(7) apply and obtain de-registration of Foreign Exchange Registration approval Certificate;
(8) de-registration of all bank accounts, including all foreign currency and RMB accounts;
(9) obtain De-registration of Registration Certificate;
(10) obtain De-registration of Enterprise Code Certificate ;
(11) obtain De-registration of Statistics Certificate.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
Previous：China Company Cancellation (WFOE)
Next：Deregister a Company in China