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Closing a Company in Xinjiang Horgos

Updated:2018-10-29 12:21:05    Source:www.tannet-group.comViews:302

Closing a company in Xinjiang Horgos has been a popular topic as the government launched even stricter rules and regulations on business set up in this region, especially those in the film and television industry. The focus of investment promotion has now shifted from virtual to practical. Many registered companies have not yet done a single business in Horgos because of the slow pace of business. Therefore, closing up the company may be a more cost-effective option than the cost of continuing to operate in Horgos.

A group of film and television companies are shutting their operations in the city of Horgos in Xinjiang amid China's tighter scrutiny of tax payments in the sector and the tax evasion scandal involving leading actress Fan Bingbing. According to China Central Television, more than 100 film and television companies have announced the closure of their businesses in Horgos since June this year.

How to Close Your Company in Horgos?
Dissolving a company 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 Company Deregistration
Generally speaking, the following documents are required for company 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.).

Consequences on Improper Deregistration
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.

Closing a company in mainland China should be compliant with the relevant laws and regulations. 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 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 86-755-82143512, 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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