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.