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How to Shut Down Your Business in China

Updated:2018-5-22 15:49:20    Source:www.tannet-group.comViews:310

How to shut down your business in China may be a troublesome question for both domestic and foreign invested company in China to confront with. Company deregistration is the most cost-efficient method of winding up an entity. Tannet recommends this strategy too all clients to avoid damaging and costly court proceedings. When one fails to cancel your company, the names of the people involved (including legal representative and board of directors) are placed on a black list. If you are on this list, you will not be able to enter or leave China!

I. Documents Required
1. Initial documents required:
The latest Capital Verification Report;
Tax Audit Report;
Statutory Audit Reports;
Corporation Income Tax (CIT) Annual Filing;
Trial working balance and journal entries;
Tax filing records, returns and receipts;
Official Tax Receipt (Fapiao) machine Records;
Payroll and Social Insurance Invoices.

2. Main documents required:
Resolution for termination of the Articles Of Association;
Application letter;
Liquidation committee list;
Resolution of shareholder for company deregistration;
Shareholders’ resolution for liquidation team;
Other documents further required by government.

Resolution for Termination of the AOA;
Resolution of Shareholder for company deregistration;
Application letter for approval of commencement of liquidation.

Application Form for Recordal in a Foreign-Invested Enterprise;
Shareholder’s resolution for liquidation team;
Liquidation committee list.

II. Deregistration Process
1. Issuance of local tax liquidation audit report (can be started 45 days after newspapers announcement).

2. Audit (annual compliance).

3. Application for Local Tax Authority deregistration:
(1) Completion of all original application forms;
(2) Liquidation documents submission;
(3) Answer all questions or queries raised by local tax Bureau;
(4) Negotiate with tax officials.

4. Local tax deregistration approval collection.

5. Issuance of State Tax Liquidation Audit Report.

6. Application for State Tax Deregistration:
(1) Completion of all original application forms;
(2) Liquidation documents submission;
(3) Answer all questions or queries raised by State Tax Bureau;
(4) Negotiate with tax officials.

7. 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, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to 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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