Deregister a company in China is also referred to China company deregistration, which can be said the most cost-efficient method of winding up an entity (since it removes the requirement to pay ongoing annual company maintenance fees). The company strategy could be changeable in the process of the enterprise operation. If you want to close the present China company for specific reasons. Company cancellation in China should comply with the China Company Law, China Tax Laws, China labor Laws and other related regulations.
Deregistering a company in China
In China, the procedure for company deregistration is rather complicated, particularly concerning compliance to China Customs and the Tax Authority. Typically, company deregistration process proceeds as follows:
1. closure of company bank account;
2. a company deregistration application is lodged with the relevant corporate regulatory authority;
3. if the company deregistration application is approved, a striking off notice is sent to the company's registered office address, as well as the directors at their residential address and relevant tax authorities;
4. a period of time is given in the striking off notice to anyone who may wish to object to the application;
5. after the notice period, a notification of the intention to strike the company off the company register is made and published in a government gazette (if applicable);
6. final notification is given that the company is fully deregistered.
(3).jpg "Company Deregistration in China")
Consequence for informal deregistration
Deregistering a foreign invested company in China is a complicated process, strictly governed in accordance with the relevant laws. The foreign investors of are strongly advised to follow the laws and proper liquidation procedures rather than attempting to abandon the investment. If fails to do so, the Legal Representative can be pursued for all outstanding debts and/or taxes, penalties and interest owed to the government, while the foreign investors can face penalties and be banned from conducting any business in China for lengthy periods.
Tannet has comprehensive experience helping SMEs doing business in China, our professional consultants can guide you through this challenging scenario smoothly.
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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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