Pre-closure review
Review outstanding tax, payroll, social insurance, contracts, licences and bank positions before a closure route is chosen.
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Company Deregistration and Liquidation in China
Close a foreign-invested company in China through an orderly liquidation, tax clearance and deregistration. Hongda coordinates the agreed steps and tells you which decisions rest with the authorities.
Who it is for
Who this service is for
- foreign investors closing a WFOE or joint venture;
- groups consolidating or exiting China entities;
- companies that have stopped trading but remain registered; and
- investors comparing closure with dormant status or a sale of the company.
Scope
What Hongda does
The final scope is agreed for each engagement.
Route selection
Compare the available deregistration routes against the company's position and confirm which one applies.
Liquidation support
Support the liquidation group with the asset list, creditor notice and liquidation report within the agreed scope.
Tax clearance
Prepare the filings and supporting records the tax bureau requests, and coordinate with the company's auditors.
Registration cancellations
Coordinate the cancellation of market regulation, tax, social insurance, customs and foreign-exchange registrations that apply to the company.
Bank closure and remaining funds
Coordinate account closure and the remittance of remaining funds where the bank and the rules permit.
Process
How it works
- 1
Confirm the shareholder decision and the closure objective.
- 2
Review the company's records and open positions.
- 3
Agree the route, scope and responsible parties.
- 4
Carry out liquidation and tax clearance.
- 5
Cancel registrations and close bank accounts.
- 6
Hand over the closing records.
FAQ
Frequently asked questions
Is liquidation always required before deregistration?
The route depends on the company's position. Hongda confirms which route applies after reviewing the records.
Can the company be sold instead of closed?
A sale through a share transfer can be an alternative. The choice depends on the buyer, the company's records and the investor's objectives.
How long does it take?
Timing depends on the route, the state of the records and the authorities' review. A schedule is proposed after the records review; no universal timeframe applies.
What happens to the remaining funds?
Remittance of remaining funds depends on the bank's review and the foreign-exchange rules. Hongda coordinates the documents within the agreed scope.
Related services
Talk to Hongda
Tell us what you need. We confirm the scope with you before any work starts.