Procedures of Shanghai WFOE Deregistration
Shanghai Hotline: 86-021-58763186
Normally, the term of WFOE operation is 20 years to 30 years. At the expiration of the WFOE’s term of operation, the WFOE can be naturally terminated. However, the shareholder may terminate WFOE earlier if the shareholder considers such termination to be beneficial to the shareholder; for example, the WFOE has financial difficulties, unable to make profit or carry on its business in a manner acceptable to the shareholder, or incurs substantial losses in such amount as the shareholder considers justified to terminate and liquidate the WFOE, etc.
Procedures of Shanghai WFOE Deregistration
1. Application for the approval of de-registration from local MOFCOM and issuance of the approval letter;
2. AIC Recordal of Clearance Team;
3. Tax Clearance with tax bureau and issuance of tax clearance certificate;
4. Newspaper announcement on the liquidation of WFOE;
5. Customs De-registration and issuance of customs de-registration certificate;
6. De-registration of finance registration certificate;
7. De-registration of Foreign Exchange;
8. AIC de-registration and revocation of the business license;
9. De-registration of organization code certificates;
10.De-registration of statistics certificate;
11. Chops demolish;
Among all de-registration procedures with different competent authorities, tax clearance with tax bureau will take longest time, which might last several months or even longer in some cases. In addition, for the purpose of protecting the legitimate rights and interests of creditors of WFOE, newspaper announcement on the liquidation of WFOE shall be done prior to the de-registration of business license of WFOE. A liquidation group needs to be established for the purpose of de-registration. Normally, the liquidation group is the shareholder for a WFOE. An responsible person of liquidation group will be appointed by the shareholder as well. During the period of de-registration of a WFOE, the liquidation and its responsible person will take care of the matters in connection with the WFOE.
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