Close a company in China legally & successfully
Can someone close a company in China without taking any necessary steps, just leave it alone when don’t want to continue a business in China?https://www.law-office-in-china.com/start-business-in-china/ Have you ever consider to close a company in China or deregister a company in China in a legal wat? Many foreign invested companies are in such situation.
Reasons for closing a company in China
If the company declares bankruptcy, or is acquired by other companies, becomes expiration of operation as per the company’s articles of association, internally divided or dissolved, or is ordered to close according to law due to its wrong business operation, then can consider to close the company.
Steps to follow for closing a company
Preparation: shareholders (meeting), executive directors (board of directors) or managers (legal representative) draft the cancellation decision of the company. Establish a liquidation group, determine the person in charge of the liquidation group, and handle the industrial and commercial filing of the liquidation group.
First of all: apply for cancellation of the approval certificate of foreign investment enterprises, obtain the commission of Commerce cancellation (termination in advance) approval documents.
Secondly: clean up the company’s property, prepare balance sheet and property list; Notice, announcement creditors (at the same time published cancellation announcement); To handle the unfinished business of the company related to liquidation; Settle taxes owed and generated in the liquidation process, settle claims and debts, settle employees’ wages and insurance, etc.; Dispose of the remaining property of the company after paying off debts.
Cancel tax registration again and cancel financial registration at the same time. 1, the cancellation of tax registration, must do the last three years of tax clearance audit. 2. Cancel the customs registration.
In addition: the announcement of cancellation has been published 45 days, and has been canceled tax registration and customs registration, and has obtained the approval of the termination of the commercial department of the company, the cancellation of industrial and commercial registration.
Finally: after obtaining the notice of industrial and commercial cancellation, the following cancellation registration shall be handled successively.
1. If the foreign exchange registration is cancelled and the liquidation income is distributed according to the equity proportion and remitted abroad, the Liquidation Audit Report must be prepared.
2. Cancel statistical registration
3. Cancel social insurance registration
4. Note (withdraw) the bank account
5. Cancel the Record Register of public Security Bureau