Before the company applies for the dissolution process with the registration authority, it must legally conduct a company liquidation, which includes terminating business operations and sales activities, concluding company affairs, settling civil lawsuits, settling debts and liabilities, and distributing remaining assets. So, what is the detailed process for company dissolution? How...Dissolve CompanyEnsure there are no issues later on.?
The company should proceed with the following steps for any nature of liquidation:
Establish a liquidation team.
2. Initiate the liquidation process.
The liquidation team has taken over the company since its establishment and is conducting the following businesses: Assume company assets, finalize pending business, collect debts, settle liabilities, distribute remaining assets, dissolve the legal entity of the company, and revoke the business license.
3. Notify creditors to declare their claims.
4. Propose a settlement plan.
The liquidation team, after clearing the company's assets, compiling the balance sheet and asset list, drafts a liquidation plan for discussion and approval by the shareholders' meeting or confirmation by the supervisory authority. The main contents of the liquidation plan include: liquidation expenses, wages and labor insurance fees payable to employees, taxes due, settlement of company debts, distribution of remaining assets, and completion of the liquidation process.
After the settlement is completed, the cancellation may proceed.
The process of dissolving the company requires visiting the following locations separately:7 departments or institutions handle the account cancellation procedures.
1、Social SecurityDepartment: Verify if there are any outstanding social security fees, and then cancel the company's social security account.
2. Tax Bureau: Verify if there are any outstanding taxes or fees, then cancel the national and local taxes for the company.
3. Newspaper Media: The company must publish a notice in the newspaper to announce the impending dissolution of the company.
4. Bureau of Industry and Commerce: Handle company deregistration recordal and cancel business license.
5、Open a bank accountCancel the company's registration certificate for opening a bank account, as well as other accounts such as the basic bank account.
6. Quality Supervision Bureau: To cancel a company's license with the Quality Supervision Bureau, such as a production license.
7. Law Enforcement: Legal effect of canceling the company seal (the seal itself may not be returned).
Notice for Cancellation
The process of dissolving the company is extremely complex and繁琐.
The company has completed the initial administrative record with the Administration for Market Regulation. → Place advertisement → Apply for cancellation with the National Tax Bureau → Apply for cancellation with the Local Tax Bureau → Submit dissolution documents to the Administration for Market Regulation → Code cancellation → Bank cancellation
The entire process of dissolving a company is generally...Approximately 5 to 7 months, with the branch office dissolution taking around 4 to 5 months. In the event of severe issues with the company, it may take up to a year to complete the dissolution.
2. Multiple trips for cancellation, with extensive documentation requirements
The time for company deregistration, on average, takes around the General Tax Bureau for general deregistration.10 trips to the local tax bureau, 4-5 trips to the Administration for Market Regulation, 3-4 trips to the bank, and this is still the time taken by business agency handling. If a novice unfamiliar with the process goes to handle it, the number of round trips is likely to be even greater, and the time wasted will also be more.
Additionally, all the company's ledgers, vouchers, and financial statements need to be organized, with national and local tax returns uploaded. If the company's previous accounting has not been sorted or done, a full set must be supplemented as well.
Secondly, the tax bureau will also review all of the company'sTaxCheck for any tax irregularities or tax evasion.
3. Tax reimbursement situations or substantial fines due to cancellation
This is the detailed process for company dissolution.!Hope this helps. Generally, companies are dissolved due to issues, and problems are often uncovered during the dissolution process. If your company is facing issues, try to resolve them as early as possible!
