Generally foreign investor can apply for foreign invested company deregistration caused by shrink of the business, serious financial loss, inspiration of operation terms, changing of the investment plan and other reasons. In introduction below our team prepared basic process of company deregistration and relevant matters to pay attention to.
1. Application for deregistration approval submission to the former approval authorities and obtaining approval for deregistration
2. Application for submission at former registration department for record liquidation of group members and obtaining record permit notification.
3. Publication of advertisement with company deregistration announcement in the country newspaper (higher than provincial level)
4. Contacting accounting firm for liquidation proceedings and issue of liquidation report
5. Application for tax cancellation procedures and obtaining notification on tax deregistration
6. Application for Custom deregistration procedures and obtaining Custom deregistration approval
7. Application for foreign trade operator record cancellation and obtaining deregistration approval
8. Handle foreign exchange deregistration:
1) Not remitted funds: rather short period of examination; premise is a capital account with an amount less than USD 2000. If more than USD 2000 than first foreign exchange settlement required.
2) Remitted funds: require longer period for examination, if there are RMB required to be exchanged, than at the appointed approval time, that day’s bank price for exchange would be provided and the same day funds remittent procedures would to be conducted.
3) Capital account cancellation and repatriation of funds in foreign currency, requires approval of security authorities. It should be noticed that this approval has valid terms, therefore before conducting foreign exchange deregistration procedures, all the bank materials should be prepared. When foreign funds remitted for audit, if account funds have been changed, related evidence should be provided.
9. Application for closing bank account
10. Application to approval authorities for certificate cancellation and obtaining cancellation receipt of foreign invested enterprise approval certificate
11. Proceed deregistration at registration authorities and obtaining notification on record deregistration
12. Application for deregistration of organization code and obtaining approval of organization code deregistration.
Pay attention to the following:
1. Company is not able to apply for deregistration if it hasn’t paid back debts.
2. Liquidation committee generally requires legal representative as a member.
3. In the period of conducting tax cancellation, only after Tax Bureau officially handle the procedures, formal report can be stopped.