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Horgos Company Deregistration

Updated:2018-10-29 12:13:38    Source:www.tannet-group.comViews:375

Horgos company deregistration has been a popular topic among investors recently. Horgos, a small and young city in the Xinjiang Uygur autonomous region, will no longer be a "tax haven" for companies that take advantage of the city's preferential policies on tax exemption, as the city has been tightening up requirements for businesses that are eligible for the policies.

For film and media production companies, the situation got worse after famous Chinese actress Fan Bingbing, who also owned an entertainment company in Horgos, was investigated for huge tax evasion in early June. More than 100 such companies have announced the closure of their businesses in Horgos since June.

New Requirements on Horgos Company Registration
A company registered in Horgos between 2010 and 2020 could enjoy tax exemption for the first five years and have a tax refund for another five years, since the city was designated an Economic Development Zone by the central government. Many people first noticed the city when they watched the credits at the end of the movies as many production companies' names often contain Horgos. People then started to call the city “Horlywood”. However, the good times are gone.

According to the Horgos Information Department, the Horgos government now requires companies that wish to enjoy the policies to have a certain size of office space and number of staff members. It also blocks companies from sharing one registration address and those that have no intention of investing in the city.

How to Close Down Your Horgos Company?
Company deregistration does not always occur for negative reasons such as bankruptcy, there may involve other subjective or objective reasons, such as certain government policy. The company cancellation in China should comply with the China Company Law, China Tax Laws, China labor Laws and other related regulations. Basically, the deregistration process are as below:

Step 1: Engagement of certified public accountant to audit company's accounts;
Step 2: Establishment of liquidating group;
Step 3: Issuance of notice and announcement of application for creditors' rights by liquidating group;
Step 4: Tax clearence;
Step 5: Recognition by relevant governmental departments;
Step 6: Distribution of properties.

Materials Need for Deregistration
1. Business License;
2. Tax Registration Certificate(if any);
3. Organization Code Certificate(if any);
4. Official seal, financial seal, invoice seal, customs seal and other seals;
5. Registration Certificate of seal carving (if any);
6. Accounting statement, account book, voucher, bank statement and tax return;
7. Rental contracts and rental invoices;
8. Other documents of the company (such as customs declaration certificate, pre- or post- approval documents, etc.).

Many celebrities entrust the service agency to handle their Horgos companies deregistration. Those companies are flexible with office space and personnel, so they react to favorable policies more than companies in other sectors do. With the help of those companies, the celebrities can complete the registration process within a month without showing up. Being a service provider based in mainland China with 20 years of history, Tannet provide comprehensive business solutions in Horgos, ranging from business setup to company deregistration.

Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, 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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