Deregister a Company in China

Our Company Deregistration Solution will help you to close a company in China in a compliant way.

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Company Deregistration in China

Companies in China may want to deregister their business for various reasons such as failure to adapt in the market, or due to financial crisis. Another important factor that has hit China market recently is the COVID-19 pandemic.

Irrespective of what factors might trigger this decision to shut down the business, investors cannot simply abandon the company and walk away without following proper closure procedures. PRC law requires a formal deregistration procedure to be followed for closing any foreign entity.

Deregister a company in China is not an easy task for many companies. The procedure is long and and problems with government, tax bureau, banks may arise. These are all situations that can cause losses and problems in the future to companies that do not understand the Chinese law and regulations.

The process of a company deregistration normally takes anywhere between 6 to 8 months, depending on the type of company that has been established. Regardless of the company you are operating in China, we will help guide you through painless and hassle-free process for company cancellation.

Procedure to deregister a Company in China

Below we list the general procedure to deregister a company in China
*Please be advised that this procedure may be different for each city in China. Contact us in case you want to know more about the procedure for a specific city in China):

  1. Check the status of the company – the purpose of the step is to check if the company has any legal issues, active arbitration case or any related financial problem.
    To check the company situation, FDI China needs the legal name of the company and three financial reports from the last three years. The reports are: Balance Sheet, Profit and Loss Statement, Cashflow Report
  2. Cancel the tax account
  3. Cancel the custom account – only if the company has conducted import/export activities (foreign currency account and China electronic port account also need to be cancelled)
  4. Announcement of the company deregistration on appointed local newspaper
  5. Create a task force to manage the company deregistration
  6. Verify the authenticity of the company chops
  7. Cancel the business licence
  8. Canc