News & Policies
Impact on the company with no business operation & cancellation
What’s the impact for the company who has not been de-registered when the company does not have normal business operation any more?
According to the related government policy, if the company does not want to run it, but has not finished official de-registration, then it will have the consequences as below:
1. If the company has not been de-registered, and also failed to pass the annual inspection at Industry & Commerce Bureau, then the company will be listed in the Industrial & Commercial Bureau abnormal list.
2. If it is included in the abnormal business list, and also the company does not take any action to remove its name from the list, the company will be revoked.
3. If the company is included in the abnormal list and has not been removed, then the legal person will not be able to act as legal person of the new companies.
4. If the company is in the tax blacklist, or owing taxes, then the legal person, executives, shareholders who want to be the shareholders or executives in another new company, need to deal with old company’s tax issues first
5. After the company is in the blacklist of integrity, then the related legal person and shareholders will not be able to go abroad and cannot be consumed in high-end places.
6. The related legal person and shareholders can not buy the tickets of high-speed train, airplane, etc.
7. Legal person and shareholders can not apply for immigration.
8. Shareholders can not apply for the loan
So in general, if you do not want to operate your company any more, please de-register it to save the hell of the troubles in the future or finish all the routine issues as normal to maintain the company’s statues. According to the latest policy, the government also trim the procedure of company de-registration. Please see below which kind of the company meets the conditions for simple cancellation?
1. Simple logout needs to meet 2 conditions:
(1) Business activities have not been carried out after receiving the Business License
(2) No creditor’s rights and debts have been incurred before the application for cancellation of registration, or the debts and debts have been liquidated
Unopened business means that no invoices have been issued and no taxes have been reported. In practice, it generally refers to an enterprise that only obtains a business license and has not reported to the tax bureau.
2. Simple cancellation process:
Step 1: the enterprise fills in the summary cancellation notice in the publicity system;
After the enterprise contact logs in to the publicity system, there will be a “Simple Logout Announcement Filling” module.
Step 2: Announcement, waiting for someone to raise an objection
Within 45 days of the announcement period, no one will raise an objection to enter the next step.
Step 3: the enterprise applies for simple cancellation registration
After the end of the announcement period, the company must submit a simple cancellation application to the Industry & Commerce department within 30 natural days.
Under normal circumstances, you can complete the simple cancellation within 2 months.
According to the Development and Reform Finance  No. 2045, enterprises on the tax blacklist will apply supervision and joint punishment, and the industrial and commercial administration departments will impose market access and qualification restrictions on the parties.
The main target is the enterprise and its legal representative (responsible person) who are publicized on the enterprise credit information publicity system, as well as the corporate legal person and natural person shareholder and other relevant personnel who are responsible for the serious illegal activities of the enterprise in accordance with relevant laws and regulations.
The more detail, please check the official Chinese version as below link):