How to Close a Business in China – New Issue of China Briefing Magazine
The latest issue of China Briefing Magazine, titled “How to Close a Business in China” is out now and currently available to subscribers as a complimentary download from the Asia Briefing Publication Store.
In this Issue:
- Common Questions Asked When Closing Chinese Businesses
- How to Close a WFOE: Step-by-Step Process
- How to Close an RO: Step-by-Step Process
- The Simplified Deregistration Procedure
Companies in China may want to end their operations for various reasons, due to changes in their business scope, failure to adapt in the market, or external pressures like the US-China trade war. Irrespective of what factors might trigger this decision to shut down the business, investors cannot simply walk away without following proper closure procedures.
For one, not properly closing the company will attract stringent penalties from the government’s tax and regulatory bodies. It could also do lasting damage to the reputation of the company – both in the eyes of the law and among consumers – as the business will be blacklisted.
Moreover, in case of improper closure, the legal representatives and financial associates of the entity will face difficulty in moving out of the country, starting another business, or even conducting ordinary banking and financial transactions if they are based in China.
In this issue of China Briefing magazine, we walk foreign investors through the process of closing down their company in China. First, we look at why entities might choose to end their business operations in the country. Next, we provide clear guidance on the legal steps to close two types of company office structures, namely a wholly foreign-owned enterprise and a representative office. Finally, we guide investors on how to use the simplified deregistration procedure introduced by the government.
If you and your company need assistance in closing down operations in China or require advice with regards to restructuring your business, please get in contact with Dezan Shira & Associates.
China Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Dalian, Beijing, Shanghai, Guangzhou, Shenzhen, and Hong Kong. Readers may write to firstname.lastname@example.org for more support on doing business in China.