The Difference Between Simple Cancellation and General Cancellation
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There are two ways to cancel the company, which are simple cancellation and general cancellation. So what's the difference?
The Characteristics of Simple Cancellation
1. The procedure is simple and the application scope is wide
For taxpayers who apply for simple cancellation, if they meet any of the following circumstances, they may be exempted from going to tax authorities for tax clearance certificates, and they can directly apply to market supervision departments for cancellation registration:
a. Those who have not dealt with tax-related matters;
b. Having handled tax-related matters but not received invoices, without tax arrears (late fees) and fines.
2. Simplified Cancellation Procedure: short time, high fault tolerance
Enterprises with simple cancellation procedures no longer carry out liquidation group filing, the announcement time from 45 days (natural day) compressed to 20 days (natural day), and can be registered online for the whole process. During the announcement period, 3 days without objection, you can handle a simple cancellation.
3. Simplify Application Materials
Enterprises will no longer be required to submit liquidation reports, liquidation group record certificates and other materials. The market subject applying for simple cancellation only needs to submit "Application for Cancellation of Enterprise" + "Power of Attorney of Designated Representative or Jointly Entrusted Agent" + "Letter of Commitment of All Sponsors" + original and copy of business license. If a branch applies for the simple cancellation of registration, it can apply for the cancellation of registration by submitting the "Application Form for the Simple Cancellation of Registration of a Branch or Branch Office" + the original and copy of the business license.
4. Establish fault-tolerant mechanisms
Allow some enterprises that do not fit the simple cancellation procedure [" listed in the abnormal list of enterprise operation ", "there are equity (investment interests) frozen, pledge or chattel mortgage, etc." "The unincorporated branch of the enterprise does not apply for cancellation registration"], overdue application for registration and non-standard filling in the letter of commitment, after the abnormal state is eliminated or corrected, apply for the simple cancellation of registration again according to the procedure. The enterprise that has issued the simple cancellation announcement may withdraw the simple cancellation announcement once before applying for the simple cancellation registration, and may apply for the simple cancellation registration twice according to the procedure. If an enterprise fails to submit an application for simple cancellation to the registration authority within the prescribed period after the end of the announcement period, it may apply for simple cancellation registration twice according to the procedure (cancel the restriction that it can apply for simple cancellation registration only once).
Circumstances that a simple cancellation cannot be applied
1. Foreign-invested enterprises involved in the implementation of special management measures on access stipulated by the State;
2. Those listed in the abnormal directory of enterprise operation or the list of enterprises seriously violating laws and breaking trust;
3. The equity (investment interest) is frozen or chattel mortgage exists;
4. Under the circumstances of being placed on file for investigation, administrative coercion, judicial assistance, or administrative punishment;
5. The unincorporated branch to which the enterprise belongs fails to cancel its registration;
6. The simple cancellation procedure has been terminated;
7. Where laws, administrative regulations or decisions of The State Council require approval before cancellation of registration;
8. Other circumstances in which simple cancellation of an enterprise is not applicable.
What is the general cancellation process?
The first step of general cancellation is to set up a liquidation group, liquidation of all the assets of the company. Secondly, to carry out the liquidation group and creditors announcement, cancellation announcement needs to be publicized for at least 45 days. After 45 days of publicity, the company may submit the Application for Cancellation of the Enterprise, the resolution or decision of dissolution of the company, the liquidation report, the tax clearance certificate, the original and duplicate business license, and other procedures to the company registration authority to go through the cancellation of the company.
Whether it is simple cancellation or general cancellation, as long as the company does not want to operate or has stopped operating, must be timely canceled, do not choose not to cancel because of the trouble, after all, if do not cancel, it will impact ourselves.
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