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Shenzhen Company Deregistration

Updated:2018-5-22 15:44:24    Source:www.tannet-group.comViews:281

Shenzhen company deregistration is also called Shenzhen company cancellation. In China, the procedure for company deregistration is rather complicated, particularly in face of mainland customs and tax departments. It can be said that the dissolution and liquidation procedures are no easier or shorter than the process of setting up such a company.

Major Procedures of Company Deregistration
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 clearence;
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.

Consequences Ensue if Not Liquidated
In the course of closing your China business, the most arduous part is liquidation which will cost time and money. In fact, there are many many companies that are dissolved without undergoing liquidation at all. This has posed a great deal of risks to companies that have dealt with such dissolved businesses.

If the shareholders for limited liability company or controlling shareholder/de facto controller and directors for companies limited by shares fails to form a liquidation committee within prescribed time which leads to the depreciation, loss, damage of corporate assets of the said company, or if such parties maliciously dispose of the corporate assets giving rise to loss by creditors of the company or such parties submit fake liquidation report for purpose of deregistering the company, creditors of the company shall be entitled to claim damages from such shareholders, actual controller and/or directors.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, 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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