Dongguan company deregistration refers to that a Dongguan company files an application to the related government department when shareholders decide to terminate the company. And the Dongguan company should follow all the other procedures to proper company dissolution. It is important to keep in mind that liquidation does not always occur for negative reasons such as bankruptcy. A company may also seriously consider liquidation for strategic reasons.
Motives for Company Deregistration
1. A resolution for dissolution is made at a meeting of a company’s shareholders.
2. A company is absorbed in a merger or has been separated from the controlling entity.
3. Expiration of business operations.
4. The business license has been revoked by the government/an order for closure has been issued or the business license has been ordered-to-be-closed or cancelled by the government in the public’s best interests due to determined legal violations (such as negative environmental impact or catastrophic malpractice).
5. A company undergoes financial difficulties and cannot anticipate transforming the business to deliver future profitability.
6. Force Majeure such as fire, natural disaster, warfare or changes in government regulations etc. enforce the liquidation of the company.
7. A company decides to relocate all or a division out of China to another country, to take advantage of: cheaper labour, a more relevantly skilled talent pool, a more supportive political environment etc. This may necessitate the company to liquidate all of their assets in China.
Company Deregistration Procedures
1.Issuance of local tax liquidation audit report;
2. Audit (annual compliance)
3. Application for Local Tax Authority deregistration:
a. Completion of all original application forms;
b. Liquidation documents submission;
c. Answer all questions or queries raised by local tax Bureau
d. Negotiate with tax officials
4. Annual Compliance: During the liquidation period, the WFOE will still be subject to the annual compliance requirements:
a. Annual reporting with various government authorities until the business license is cancelled, including the AIC annual reporting, foreign exchange annual reporting and joint annual reporting with commerce commission; and
b. Regular tax filings until its local tax registration and state tax registrations are cancelled;
5. Local tax deregistration approval collection
6. Issuance of State Tax Liquidation Audit Report
7. Application for State Tax Deregistration:
a. Completion of all original application forms;
b. Liquidation documents submission;
c. Answer all questions or queries raised by State Tax Bureau;
d. Negotiate with tax officials
8. State Tax Deregistration approval collection. Once your company has received the tax deregistration approval collection from the state, you can proceed to the next stage and your business has now completed the China tax process.
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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