How to deregister a foreign invested enterprise in China?
Hotline: 86-755-82143422, Email: tannet-solution@hotmail.com
China company cancellation (WFOE) refers to close up a wholly foreign owned enterprise in China. On December 26, 2016, China’s State Administration for Industry and Commerce (“SAIC”) issued its “Guiding Opinions on Comprehensively Promoting the Reform of Simplified Deregistration of Enterprises”, “Guiding Opinions”, effective as of March 1, 2017 to introduce the simplified enterprise deregistration procedures across the country.
The following enterprises are explicitly excluded from using the simplified deregistration procedures:
a. FIEs in the industries listed in the Negative List;
b. Enterprises under any of the following circumstances：
(1) Being listed as enterprises whose operation is abnormal or that have seriously violated law or are discredited;
(2) Shares (investment rights and interests) in the enterprises are frozen, pledged or mortgaged, etc.;
(3) Being under investigation, compulsory administrative measure, judicial assistance, or administrative punishment, etc.;
(4) Their non-legal person branches have not yet been deregistered;
(5) Being ordered to stop using the simplified deregistration procedures;
(6) Approval is required before deregistration according to laws, regulations and the State Council’s decisions;
(7) Other scenarios where the simplified deregistration procedures are not applicable.
The Deregistration Process
1. Issuance of local tax liquidation audit report (can be started 45 days after newspapers announcement);
2. Audit (annual compliance);
3. Application for Local Tax Authority deregistration:
a. Completion of all original application forms;
b. Liquidation documents submission;
c. Answer all questions or queries raised by local tax Bureau;
d. Negotiate with tax officials;
4. Annual Compliance: During the liquidation period, the WFOE will still be subject to the annual compliance requirements:
a. Annual reporting with various government authorities until the business license is cancelled, including the AIC annual reporting, foreign exchange annual reporting and joint annual reporting with commerce commission; and
b. Regular tax filings until its local tax registration and state tax registrations are cancelled; Foreign currency report;
5. Local tax deregistration approval collection;
6. Issuance of State Tax Liquidation Audit Report;
7. Application for State Tax Deregistration:
a. Completion of all original application forms;
b. Liquidation documents submission;
c. Answer all questions or queries raised by State Tax Bureau;
d. Negotiate with tax officials;
8. State Tax Deregistration approval collection. Once your company has received the tax deregistration approval collection from the state, you can proceed to the next stage and your business has now completed the China tax process.
Authorities involved in the Liquidation and Deregistration process
1. Local Tax Bureau;
2. National Tax Bureau;
3. Customs Office;
4. Foreign Exchange Authorisation;
5. Industrial and Commercial Administration Bureau.
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.
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