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China Company Deregistration Procedures

Updated:2018-7-4 17:37:51    Source:www.tannet-group.comViews:595

China company deregistration procedures must be strictly complied with, otherwise the enterprise’s legal representative and shareholders will be blacklisted by the industrial and commercial bureau and may not be able to register a company in China by using his own name.  Meanwhile, their personal poor credit record will be kept for 7 years, and face fines. 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.

Legal Basis of Company Deregistration in China
Dissolution and liquidation of foreign-invested enterprises should be in accordance with the company law and relevant provisions of the foreign investment laws and administrative regulations:
(1) Company Law;
(2) Implementing Rules for the Foreign-invested Enterprises Law;
(3) Implementing Rules for the Chinese-foreign Cooperative Enterprise Law;
(4) Implementation Regulations for Chinese-foreign Cooperative Enterprise Law.

When will Company be Deregistered
According to Articles 190 and 192 of the Companies Law, a company must be dissolved if any of the following circumstances occur:

(1) Its term of operation expires or other reasons for dissolution stipulated in the original Articles of Association have occurred.
(2) A resolution to dissolve the company is made at a meeting of the shareholders.
(3) The company is merged or divided.
(4) When a company is ordered to close due to its violation of the law or of administrative rules and regulations.

Procedures for Company Deregistration
(1) Pass of the dissolution application by the approval authorities of China foreign-invested enterprises;
(2) The enterprise establishes the liquidation team and reports to the industry and commerce department;
(3) The liquidation team issues the liquidation report;
(4) The enterprise submits the liquidation report to the foreign-invested enterprises’ approval authorities to cancel the approval certificate;
(5) Cancel the certificate issued by the tax bureau and the customs department;
(6) Submit the deregistration application to industrial and commercial authorities;
(7) Submit the deregistration application to the bank, foreign exchange bureaus.

The procedures for closing an enterprise incorporated in China are no easier or shorter than the process of setting up such a company. Therefore, advises from professional consultancy will help business owners save time and money.

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