Liquidate a company
When it is time to close down your business in China, it is important to follow the appropriate legal procedures and liquidate the company properly.
In what scenario is dissolution needed?
- All company dissolution should comply with the relevant laws and requirements of the PRC.
- The company was declared bankrupt in accordance with the law.
- The Terms of Operation prescribed in the Articles of Association or other dissolution events prescribed in the Articles of Association shall appear.
- All Shareholders or the sole shareholder of the one-person LLC decide to dissolve.
- The business license shall be revoked in accordance with the law, and the company shall be ordered to close or be revoked.
- The Peoples’ Court demands the close of business.
- Dissolution is required for the merger or division of the company.
- Other circumstances stipulated by law or administrative regulations.
How to proceed with the deregistration?
- Clear social security expenses and accounts with the Social Security Bureau.
- Clear unpaid taxes and charges with the Tax Bureau.
- Post Announcement on major news media to declare the dissolution.
- Cancellation of the business license and related records.
- Cancellation of corporate accounts.
- Deregistration of other industrial licenses and qualifications.
- Nullify the legal effect of the company seal.
- Other necessary deregistration procedures.