Close company in China

Open with the fact that closing a company in China is a formal, multi-step process – not simply ceasing operations. “Deciding to close your China company (whether due to strategic reorientation or business difficulties) involves a rigorous legal process of liquidation and deregistration. Companies must obtain clearance from tax authorities, cancel licenses, and deregister with numerous agencies. It typically takes several months to complete, and doing it incorrectly can lead to blacklisting of investors or legal complications.” This sets why our help is needed.

Our Company Deregistration Services

  • Liquidation Committee Setup

    We guide you on the formal appointment of a Liquidation Committee, as mandated, which will oversee the winding-up.

  • Debt & Asset Handling

    Our consultants help you create a liquidation plan – dealing with assets (selling or repatriating them), settling employee layoffs and severance, paying off creditors – as all these must be done and documented.

  • Tax Clearance

    We work to obtain a Tax Clearance from the tax bureau – meaning all taxes up to closure are paid and the tax authority gives consent to deregister.

  • Deregistering Licenses

    We systematically deregister the company at: Market Regulation bureau、Customs、Foreign exchange、Social insurance and housing fund accounts closure(canceling import-export license, etc., if the company had them).

  • Legal Documentation

    Drafting needed resolutions (shareholder resolution to dissolve, etc.), announcements (sometimes a public announcement in a newspaper about the liquidation is required by law to alert creditors).

  • Timeline & Project Management

    Typically, a straightforward company closure can take 3-6 months, but complications (outstanding debts, investigations) can extend it. We drive the process proactively, communicating with all authorities to minimize delays.

Employee and Stakeholder Communication

If not already covered by HR service, mention we assist in legally terminating employees with proper notice and severance as part of closure, and making sure labor filings are closed. We can also coordinate with suppliers or landlords to terminate contracts properly.

Why Professional Help

Without guidance, deregistration can be extremely daunting – any mistake can cause the process to restart or leave the company ‘half-deregistered’ which is a legal limbo. Our team’s experience in closures means we foresee common pitfalls and handle the heavy lifting, so you can exit China cleanly. Moreover, failing to formally deregister can result in fines and the legal representative and investors being blacklisted from future investments in China, so it’s crucial to do it right.”

Experience: If we have done closures: “HengXinHuiYing has successfully handled company liquidations across industries – from small rep offices to larger WFOEs – ensuring clients meet all legal obligations and wrap up operations properly.”

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