Company dissolution in China may be a popular issues for enterprises or investors doing business in China. Whether you're planning to sell your business to another entity or need to shut it down for financial reasons, the dissolution of a business is actually quite complicated in many respects.
Before you proceed this process, it's important to get familiar with the process related to dissolving a business. Considering the complexity of company deregistration in China, you may turn to a professional agency. Tannet’s experienced consultants will be glad to assist and advice on how to approach your particular challenge.
Main Steps of Dissolution
The main steps of the dissolution are almost the exact opposite of setting up the entity, except the company chops will be in use to almost the end. An outline of the process is:
1. Tax Cancellation, both a the local and national tax bureaus;
2. Liquidation Audit;
3. Customs Registration Certificate cancellation (For trading companies);
4. Administration for Industry and Commerce cancellation;
5. Newspaper Announcement of Dissolution;
6. Commerce Commission cancellation;
7. Bank Account cancellation;
8. Certificate cancellation;
9. Seal cancellation.
All the steps mentioned above are following up one another. For some small business owners, the time comes when they must end operations and dissolve their business. It’s a stressful time and a multi-step process.
If you fail to comply to the above, or if you think it is just too time-consuming and troublesome, please think again. 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.
According to Tannet’s experiences, people named on this list are sometimes allowed to enter China and then immediately arrested. Entrance and arrest is more likely if the monetary amounts are large or if a government agency is involved (taxes and fees).
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 firstname.lastname@example.org. 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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