If the business loses money, exit by the proper procedure: deregister by the simplified route if you can, go through bankruptcy if you are insolvent, and don't leave it unattended
- High value
- Evidence A
- Saves money
- Free
- Takes some hours
- Some willpower
In plain words
If you have no debts and owe no wages, taxes or social insurance, all investors sign a written commitment, and if no one objects during 20 days of public notice, you can use simplified deregistration (简易注销). Sole proprietors need no notice, and are deregistered directly if no one objects within 10 days. If you can't pay your debts, apply for bankruptcy. If a business is left unattended, files no annual report for 2 years and can't be reached, its license is revoked, and the legal representative responsible can't serve as a legal representative again for 3 years.
Mentioned in
- Once you hold a license you have filing duties; with no income you must still file a zero return on time (file a form of all zeros)
- If you run a company or a sole proprietorship, file last year's annual report online between January 1 and June 30 each year, even with no business; the annual report is free
Translated from the Chinese original. Original book, section 12, tip 23. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer