Regardless of the type of business or field of activity, a Chinese company may face financial difficulties, and company owners will want to consider liquidating the Chinese company. The process may be unavoidable for some enterprises, but this does not mean that the investor should stop doing business in China.
Documents required for liquidation:
· Business License (营业执照)
· General seal (公章), financial seal (财务章), personal seal (私章)
· Certificate of account opening (开户许可证) and usb tokens
· Information for entering the tax system
· The company’s financial statements for the last three years
· Copy of legal representative ID
Steps of liquidation
Creation of a liquidation commission of two people, one of which is the legal representative and head of the commission
· Preparation of a liquidation report (after completion of settlements)
· Make a liquidation statement in 45 days
· Tax cancellation
· Revocation of a business license
· Cancellation of a bank account
· Cancellation of seals
Legal basis for liquidation
- The procedure for the liquidation commission
(liquidation of property, determination of receivables and payables, financial audit, valuation of assets, valuation of land assets, valuation of intangible assets, etc.) - Determination of balance sheet assets and liabilities at the date of liquidation
- Audit of liquidation, including current assets, foreign investments, fixed assets, current and long-term liabilities of the company
- Assets are generally valued by institutions with the appropriate qualifications in accordance with relevant national laws and regulations. Valued fixed assets, real estate, intangible assets, etc. and on the basis of this, the liquidation commission carries out a comprehensive assessment
- Confirmation of law of obligations, mainly explains the formation of law of obligations and the position of the
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