Shenzhen company cancellation means closing a Shenzhen company. Over the years, an increasing amount of foreign companies have a presence in Shenzhen. Consequently, it is only natural that the number of foreign companies wanting to dissolve their entity has been increasing over the years. The reasons these companies leave China for are as varied as the companies themselves. Perhaps a market segment has been drying up over the years, Chinese competitors become too strong or the owner just wants to retire. In any case, this brings the necessity to close the WFOE or JV.
Ways to Close Down A Foreign-invested Company in Shenzhen
1. Formally dissolving the Company. After the Company pays up all the salaries and social insurances to its employee, taxes to the authority, debts to other companies or individuals, it can submit dissolution application with the authorities one by one including but not limited Commerce Bureau, Administration of Industry and Commerce, Statistic Bureau, Finance Bureau, Tax Bureau, State Administration of Foreign Exchange etc.
2. Filing for bankruptcy liquidation. If the Company is in bad finance situation and can not pay up the salaries, taxes or debts, then that is the way the Company can be closed down.
3. An informal petering out. Due to the time and costs involved in the above two scenarios. This option makes the most sense for those companies that decide to back out from China and no plan to establish a new business in China in the near future. This option involves the Company to do the following at minimum:
(1) Terminating all the employees of the Company;
(2) Paying all the taxes, pensions.
Steps of Dissolution
The main steps of the dissolution are almost the exact opposite of setting up the entity, except the company chops will be in use to almost the end. An outline of the process is:
Tax Cancellation, both a the local and national tax bureaus;
Liquidation Audit;
Customs Registration Certificate cancellation (For trading companies) ;
Administration for Industry and Commerce cancellation;
Newspaper Announcement of Dissolution;
Commerce Commission cancellation;
Bank Account cancellation;
Certificate cancellation;
Seal cancellation.
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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