Yiwu company liquidation refers to the process of bringing a business to an end and distributing its assets to claimants. Once the process is complete, the business is dissolved. In finance and economics, liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. The company’s operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims.
However, the shareholders usually are not familiar with the related formalities when planning to terminate the company, so this may possibly result in the breach of relevant laws due to ignorance. Therefore, it is wise choice to turn to a professional agency. Tannet, with 18 years of development, is surely provide clients with tailor-made services ranging from business setup, business operation, business management, to corporate cancellation.
Main procedures of Yiwu Company Liquidation
1. Engagement of certified public accountant to audit company's accounts;
2. Establishment of liquidating group;
3. Issuance of notice and announcement of application for creditors' rights by liquidating group;
4. Tax clearance;
5. Recognition by relevant governmental departments;
6. Distribution of properties.
Sequence of Distribution of Properties
1. Payment of liquidating costs;
2. Payment of employees' wages, social insurance cost;
3. Full payment of tax;
4. Liquidation of debt;
5. Distribution to shareholders.
After completing liquidation of company, the liquidating group needs to prepare liquidation report which, after confirmation by meeting of shareholders or China Court, will be declared with administration for industry and commerce and administration of taxation, in application for liquidation.
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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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