There was a foreign entrepreneur in Guangzhou, after his company was revoked, wanted to start a business in Hangzhou.
However, after securing tens of millions in financing, he was unable to receive the funds due to being blacklisted by the tax authorities. 
In the end, he wasted a great deal of time and money dealing with the aftermath and missed out on business opportunities.
Hello everyone, today let's talk about what will happen if your Chinese company is no longer in operation but you don't cancel it.
Dissolution vs. Revocation
Properly cancelling a company is the only way to exit the market in a regulated manner. Although the process is somewhat cumbersome, it can prevent all subsequent risks.
If a company is not canceled for a long time, it will be listed as abnormal by the industry and commerce department and eventually have its business license revoked.
Once this happens, the company owner will face at least three major impacts:
1. Shareholders and legal representatives will be blacklisted:
Tax blacklists are recorded for a long time. Any outstanding taxes will be pursued, along with late fees and fines. They may no longer be allowed to start businesses in China in the future.
2. Affect legal employment:
The legal representative or investor's visa will not be extended or cancelled, affecting future legal employment in China.
3. Affect personal credit records and travel:
Future loans, home purchases, and car purchases in China will be affected, and they may even be restricted from taking flights and high-speed trains.
If you also plan to cease operating your own Chinese company, be sure to remember to carry out a compliant cancellation! If you have any questions, feel free to contact us.
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