Close a Company in China
Deregister your company in China in a compliant and comprehensive manner.
Company De-Registration in China
Companies in China may want to close their business for various reasons such as changes in their business scope, failure to adapt in the market, relocation of the company, local regulatory changes, or due to an industry crisis that might be caused by geopolitical tensions or by the recent evolution of the coronavirus pandemic.
Regardless of what factors might trigger the decision to shut down the business, investors cannot simply abandon the company and walk away without following a proper closure procedure. If such, this behavior could result in very serious legal liabilities for the Legal Representative and compromise any other future project or business that the company intends to carry on in China. PRC law requires a formal liquidation procedure that has to be followed by any foreign entity, which involves various government bodies and documents preparation. The full liquidation process can easily take up from 6 months to 1 year.
Regardless of the company you are operating in China, we will help guide you through the complex process of company cancellation, in a painless and hassle-free manner.
Our Company De-Registration Procedure
01.
Company Audit
The Pre-Liquidation Audit Report to ensure the tax authorities that the company accounts are valid and in proper order prior to the liquidation decision.
02.
Cancelling Registry
Closing the relative accounts and certificates owned by the company.
03.
Account Closure
Closing your company and transferring any and all balance out.
Our Working Process
01.
Consultation & Proposal
We (can) advise you on the best solution for your business model and send you our comprehensive proposal.
02.
Signing & Payment
After reviewing the proposal, we sign the service contract and receive your payment.
03.
Preparing Documents
We send you an application form as well as the list of documents we need from your side.
04.
Take a Break
Sit back, relax and let us take care of everything from here on out. Your company will be de-registered in roughly one month.
Documents required for company de-registration
To start the procedure for the de-registration of a company in China, you will need these documents:
- Originals of Certificate of approval, Letter of approval, Business License
- Written board resolution of Cancellation
- Originals and copies of Legal Representative’s passport (first page, signature page, and most recent immigration records’ page)
- Bank Account Certificates
- All company’s chops (Company chop, finance, Legal representative)
- All accounting related documents: balance sheet, profit and loss statement, cashflow report
- Unused Invoices
- Tax control disk
China company closure time
In China, the procedure for company de-registration is rather complicated, particularly concerning compliance with China Customs and the Tax Authority.
Company closure if fast for small companies with everything in order, but depending on the facts of the dissolution (i.e. the number of employees at the time of dissolution, location, local labor bureau offices, labor suits, debt and tax issues, etc.), the process can take up to 6 to 12 months.
Frequently Asked Questions
In China, the procedure for company de-registration is rather complicated, particularly concerning compliance with China Customs and the Tax Authority.
Small companies with everything in order can expect a clean closure within a month or two.
Depending on the number of employees at the time of dissolution, location, local labor bureau offices, labor suits, debt and tax issues, the process could take up to 6 to 12 months.
To start the procedure for the de-registration of a company in China, you will need these documents:
- Originals of Certificate of approval, Letter of approval, Business License
- Written board resolution of Cancellation of WFOE
- Originals and copies of Legal Representative’s passport (first page, signature page, and most recent immigration records’ page)
- Bank Account Certificates
- All chops of WFOE (Company chop, finance, Legal representative)
- All accounting related documents: balance sheet, profit and loss statement, cashflow report
- Unused Fapiaos
- Tax control disk