In China, the procedure for company deregistration is rather complicated, particularly in face of mainland customs and tax departments. Company may be deregistered when shareholders decide to terminate the company, due to difficult business operation or financial crisis which cannot be dissolved.
All company dissolution should be comply with the requirements of laws and regulations of PRC’s Company Law and PRC’s Company Registration Administration Ordinance, i.e.:
1. The company was declared bankrupt in accordance with the law.
2. The Term of Operation prescribed in the Articles of Association or other dissolution events prescribed by the Articles of Association shall appear.
3. Shareholder’s Meeting or the sole shareholder of the one-person liability limited company decide to dissolve.
4. The business license shall be revoked in accordance with the law, and the company shall be ordered to close or be revoked.
5. The People’s Court demands the close of business.
6. Dissolution is required for the merger or division of the company.
7. Other circumstances stipulated by laws and administrative regulations.
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What if not Apply for Company Cancellation as Required?
For investors with a future perspective on doing business in China or looking to close potentially significant liabilities, deregistering properly will pay off in the long term. With the option of doing future business in China at stake, it is beneficial for a company to carry out its deregistration in the prescribed manner. Some of the consequences are listed below:
1. The legal representative of the company revoked shall not engage in business activities within 3 years in China.
2. The responsible legal representative will be blacklisted and cannot buy air ticket and train ticket in China for the company that has not been revoked as required.
3. The overdue penalty should be paid if the legal representative of the company applies for a license three years later.
How to Proceed China Company Deregistration?
1. To Clear social security expenses and accounts in Social Security Bureau;
2. To clear unpaid taxes and charges in Tax Bureau;
3. Announcement on the major newspaper media to declare the cancellation;
4. Cancellation of the record and the business license;
5. Cancellation of corporate accounts;
6. Deregistration of other industrial licenses and qualifications;
7. Nullify the legal effect of the company seal;
8. Other necessary deregistration procedures.
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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