Meaning
A statutory timeline governs the orderly termination of a company’s legal existence under Chinese corporate law. When a foreign invested enterprise chooses to exit the market, it must execute a corporate deregistration schedule to satisfy local administrative requirements. The schedule starts with the formation of a liquidation committee within fifteen days of the dissolution event.
It finishes only when the company receives the final notification of deregistration from the State Administration for Market Regulation. This timeline prevents premature asset distribution before all tax obligations are satisfied.
Administrative Sequence
Execution of the process requires coordination across multiple government departments. First, the liquidation committee must notify creditors within ten days of its establishment and publish a public notice on the National Enterprise Credit Information Publicity System. Creditors have forty-five days from the public notice to declare their claims.
In parallel, the company must submit its final tax accounts to the local tax bureau. This tax clearance represents the most common bottleneck in the entire corporate deregistration schedule, as authorities often perform a detailed audit of all transaction records.
Clearance Obligation
Settling outstanding obligations to workers and tax bureaus represents the core condition of the process. Social security payments must be fully settled, and all customs accounts must be closed by the local customs office before the company can proceed. Failure to complete these steps halts the corporate deregistration schedule.
Exit Outcome
The formal termination of legal personality is achieved only when the market registry cancels the company license. After tax and social security accounts are cancelled, the company submits the liquidation report and application to the State Administration for Market Regulation. This cancels the business license and ends the corporate deregistration schedule.
Following this cancellation, the remaining bank accounts are closed, and the corporate seals are formally destroyed or deposited. Legal existence terminates, leaving no recourse for subsequent civil claims unless fraud is later proven.
