Cancellation An Asian Entity Company

The company’s cancellation is a process in which a company needs to go to the registration authority to apply for registration and terminate the company’s legal personality when a company declares bankruptcy, is acquired by another company, does not continue to operate after the expiration of the specified business period, or the company’s internal personnel are dissolved.
The process of canceling the company is complicated and cumbersome. The entire process of canceling the company is generally completed in about 5 to 7 months, and the cancellation time of the branch is about 4-5 months. If the company has some serious problems, it may take another year to cancel.

What circumstances must dissolve a company?

1. Bankrupt.
2. Articles of Association stipulate that the business period expires.
3. The company was dissolved due to a merger or separation.
4. The company was ordered to close.

Process of dissolve a company

1. Employee insurance:
   Check if there is any unpaid insurance premium, then cancel the company insurance account.

2. Inland Revenue Department:
   Check if there are any unpaid taxes or fees, and then cancel the company tax number.

3. Newspaper media:
   The company must report on its own and announce that the company is about to cancel.

4. Industry and Commerce Bureau:
   Handle the company’s cancellation of the record and cancel the business license.

5. Bank:
   Cancel all bank accounts of the company.

6. Import and export rights:
   Revocation of the relevant documents for the import and export customs registration of the company.

Notes on cancellation

• Before the liquidation operation, the company still has the status of a legal person, and its rights, obligations, and behavioral capacity have not changed. After the liquidation operation is started, the company enters a special stage, and its rights, obligations, and behavioral capacity are reduced, subject to corresponding restrictions. However, during the liquidation period, the company still has the status of a legal person and can participate in civil proceedings. After the completion of liquidation, the company’s legal person capacity was further reduced. There are only a few obligations left, such as debt repayment.
  After liquidation, the company officially enters the logout program. Generally speaking, the entire logout process takes 6-12 months. After the cancellation was completed, the company’s legal personality was completely eliminated.
• Before the cancellation, all the books, vouchers, and financial statements of the enterprise need to be sorted out, and the national tax and local tax reports should be uploaded. If the company’s previous accounts have not been sorted or not done, then it needs to be completed. Secondly, the tax bureau will check all the tax issues of the enterprise to see if there are any abnormalities in tax payment or tax evasion. Generally, the cancellation of a company is usually due to some problems of the company, but some problems will be found when the company is canceled. For example, whether the enterprise’s rent invoice has been issued, whether it is still operating there, the company’s leasing contract is not found, and the tax of the enterprise is low in the past few years. The cancellation procedures will increase, and the costs will naturally increase. This is why it is more expensive to cancel a company than to register a company.

If you do not log out as required

• Will be listed on the “blacklist”, because the company violates laws and regulations or administrative regulations, the industry and commerce administrative department forcibly stops its operations. The company still exists and has to bear the corresponding creditor’s rights and debts, but it is not allowed to carry out business operations. As long as the legal representatives and shareholders involved in the company handle the following matters in the future, they will be subject to relevant restrictions:

1. The blacklist of the Industry and Commerce Bureau can never handle the company. (including any information of shareholders, legal representatives, and supervisors).
2. Legal representatives cannot receive related insurance.
3. Legal representatives cannot borrow money to buy a house or immigrate.
4. Can’t handle tax registration, and will publish corporate information related to tax arrears. Involving tax arrears, the person in charge of the enterprise will be prevented from leaving the country and cannot fly by plane and high-speed rail.
5. If the tax is not reported for a long time, the tax bureau may come to inspect it
6. The business credit network enters the abnormal operation list, and all external applications are restricted.
7. Inclusion in our integrity system, many will be restricted in the future.

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