Nowadays, company registration is more and more easier. But,what if the company doesn't run well? What’s your choice? Just leave it alone, without doing company accounting, or apply for company cancellation? As the tax government are more and more stricter on the tax issue, it's better for company legal cancellation than leaving it alone.
Bad consequences of not canceling the company legally in time?
Heavy fines by the tax bureau.
Forbid registering companies in following 3 years.
Affect Individual social insurance, not allow to get endowment insurance.
Forbid buying tickets for train or airplane.
Forbid emigrating abroad or being departure.
Not allow to grant a loan.
Put on a bad personal credit record list.
Procedure:
Step 1st: Industrial And Commercial Liquidation
Step 2nd: Published on Newspaper
Step 3rd: Tax Cancellation
Step 4th: Customs Cancellation(if have)
Step 5th: Business License Cancellation
Step 6th: Bank Account Cancellation
Step 7th: Official Seals Cancellation
Processing time: Around 4 to 6 months
Documents Required
Business License
Bank Account Opening Permit
Institution Credit Code Certificate
Official Seal, Legal Person Seal and Financial Seal
Approval Certificate of Official Seals，Etc.
In fact, company cancellation is not as easy as company registration. It takes much more time for a company to be totally canceled, and cancellation procedures are complicated. But worth it.
