Serious Consequences of Not Canceling a Company Properly
Serious Consequences of Not Canceling a Company Properly
Recently, the Exit-Entry Bureau in Shanghai has been conducting close inspections on companies opened by expats. For companies that cannot pass the inspections, the visas of relevant personnel could be seriously affected.
If a company opened by foreigners in China cannot operate normally, the company needs to be canceled in time.
Consequences of not deregistering the company?
01
The visas of legal persons/investors cannot be extended or canceled, and they cannot be legally employed in the future.
If the company sponsors work visas of legal persons or investors, it will be required to provide proof of the company's normal operations during extension or canceling.
If the proof cannot be provided, the permits cannot be extended or canceled. If the work permit cannot be canceled, the person cannot apply for a work permit for other work. Therefore the applicant cannot be legally employed.
NOTE
Proof of the company's normal operations generally include:
1) Fapiaos for business transactions
2) Company bank account
3) Proof of hiring Chinese employees
VisaOfChina Team could assist you and your company regarding permits cancellation/ extension
02
The company and related personnel will be blacklisted by Exit-Entry Bureau.
If the company does not operate and does not cancel, the company and related personnel will be blacklisted by the local Exit-Entry Bureau.
They will not be allowed to return to China to open their own business in the future.
Under what circumstances does a company need to be canceled?
1. Owner of the company wants to leave the country, the company opened in China will no longer operate and need to be canceled in time.
2. If the company has not been operating normally, it needs to be canceled in time
3. If the company cannot continue to operate and needs to apply for liquidation, it needs to be canceled in time
NOTE
If you need to cancel your company, you can send VisaOfChina Team the following information, and we will help you evaluate and prepare a potential solution.
1) Has the company issued invoices?
2) Does the company have a bank account for meetings?
3) Company name
If you have any questions about China visa applications(work visa, PU letter, company registration, and more), please contact our visa consultant Annie (WeChat ID: AnyHelper-ss)
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