How to Close a Company in China

Never just abandon a company

An abandoned company is marked abnormal: penalties accrue, the legal representative is blacklisted from future directorships, and credit records follow shareholders. Formal deregistration is the only clean exit.

Deregistration steps

• Shareholder resolution and liquidation group formation
• Tax clearance: settle filings, invoices and outstanding tax
• Audit and liquidation report
• Deregistration with the market regulator and public announcement
• Close bank accounts, customs and social insurance records; surrender chops

Timeline

Three to six months is typical for a compliant company with clean books. Unfiled returns or open tax issues extend the process until resolved.

Simplified deregistration

Companies with no debts and no tax activity may qualify for a simplified track with a shorter announcement period. We assess eligibility first and prepare the full file either way.