Closing a WFOE in Shenzhen
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
Closing a WFOE in Shenzhen should be compliant with Chinese laws and regulations. The company strategy could be changeable in the process of the enterprise operation. If you want to close the present Shenzhen company for specific reasons, it usually means a couple of months or even longer time shall to be spent on the cancellation process. Tannet offers one-stop services for Shenzhen company cancellation to take away the distraction of the tedious procedures by virtue of our professionalism and experience.
Documents Required for WFOE Deregistration
To start WFOE deregistration, you will need to prepare the following documents :
1. Originals of Certificate of approval, Letter of approval, Business License;
2. Taxation registration certificate;
3. Foreign exchange accounts permits;
4. Witten board resolution of Cancellation of WFOE;
5. Bank Account Certificates;
6. All chops of WFOE (Company chop, finance, Legal representative);
7. All accounting related documents: bank statements, invoices of WFOE expenses.
8. Other materials may be required.
Steps to Closing a Company in Shenzhen
1. Clear the tax and submit Tax Clearance Declaration Report (an audit report prepared by CPA firm);
2. Issuance of the "notice of cancellation of tax registration" by the Tax Office;
3. Application for cancellation of WFOE;
4. Submit to Foreign Trade & Economic Cooperation Bureau;
5. Cancellation of Letter of approval and Certificate of approval;
6. Announcement on appointed local newspaper & Cancellation of Company Business Licenses
7.Cancellation of Alien Employment Permit;
8. Dissolution registration with customs (applicable to trading, manufacturing WFOE only);
9. Bank accounts closure and capital repatriation;
10. Cancellation of Company stamps;
11. Issuance of the "notice of the approval of cancellation for WFOE” by the State Administration of Industry & Commerce.
Failure in complying with the legal procedures will incur the following consequences:
1. The legal representative of the company revoked shall not engage in business activities within 3 years in China.
2. The responsible legal representative will be blacklisted and cannot buy air ticket and train ticket in China for the company that has not been revoked as required.
3. The overdue penalty should be paid if the legal representative of the company applies for a license three years later.
For whatever reason, investors in China may be faced with the decision to cease their company’s operations. Shenzhen company deregistration is much more complicated than that of company registration. The Chinese government imposes severe sanctions on investors who do not properly deregister their company. For investors who still want to do business in China in the future, it is beneficial to carry out the company deregistration in a legally compliant and structured manner.
Contact Us
If you have further inquires, please do not hesitate to contact ATAHK at anytime, anywhere by calling China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.