China Company Deregistration Service
Hotline: 86-755-82143422 Email: anitayao@citilinkia.com
China company deregistration (China company cancellation), means shareholders decide to close the company because of its operation problem that may not be solved. Sometimes an unfortunate occurrence, other times an opportune move, deregistration is never a purely easy process. However, the shareholders usually unfamiliar with the related formalities when planning to terminate the company, so this may possibly result in the breach of relevant laws.
Company Deregistration Reasons
According to China’s new company law, a company may have to be dissolved when one of the following conditions is met: Firstly, the business operation term as agreed in the company’s Articles of Association becomes expired or other condition for dissolution as agreed in the Articles of Association for dissolution occurs; Secondly, resolution of dissolution is made by the meeting of shareholders. Thirdly, the company is merged or separated and the company will not exist any more; Fourthly, the business license is revoked by government, or the company is ordered to be closed or cancelled; Fifthly, there is serious difficulty in company’s operation and management and the shareholder’s interest may suffer great loss if the company continues to operate. Shareholders who holding ten percent or above voting right may file to the court for dissolution if negotiation among shareholders fails.
Company Deregistration Procedures
Company deregistration procedures can be very complex. It is important to note that corporate bank accounts should be closed and there is no outstanding balance. Generally required process for properly dissolved are:
1. Formal corporate action (liquidation procedure)
2. Filing with the appropriate government department
3. Statutory notice to creditors
4. Processing of all creditor claims
5. Sale and distribution of all remaining assets
6. Cancelation of invoice, business license, and other registered information
After completing liquidation of company, the liquidating group needs to prepare liquidation report which, after confirmation by meeting of shareholders or China Court, will be with administration for industry and commerce and administration of taxation, in application for deregistration. Never an easy situation to deal with, an ability to pay one’s debts when they become due may lead to bankruptcy in the case of individuals, and in the case of companies to liquidation. The normal procedure is for a liquidation committee to be appointed to gather and dispose of the assets of the insolvent and to pay the creditors. In China, the relevant government authorities must approve liquidation of an enterprise and certain procedures must be followed.
Processing time for company deregistration
Normally, an officially process of company deregistration takes around 6 months for all the steps to be done.
Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.