It is time for Companies Annual Renewal this year. Actually, a few companies are winded up every year because of their poor operation , and they merely quit trading or close offices.
However, there are a lot of things you need to care about once you make up decision to wind up your company.
Let HACOS tell you about the details:
Difference Between Applying For Cancellation and Passive Cancellation
In accordance with laws, company which is about to cease its business operation must submit specific documents of company cancellation to Administration Office within 3 months after expiring date of business license.
Administration Office will revoke the license once the company fail to apply for company cancellation without following the regulations.
What will result in license revocation?
Fake Registration
Includes misstating registered capital, submitting falsified materials or making a false capital contribution, etc.
The company should be operated within the registered scope of business and apply for extensive or another operating range in accordance with laws.
If an enterprise alters major items in the registration without permission or engages in business operations beyond the scope of business as approved in regulation, it shall be imposed upon a punishment according to relevant regulations by Administration Office.
It is likely to be revoked business licenses if companies merely quit trading without legal cancellation or annual renewal, evade supervision or miss specific time of annual renewal resulting from staff negligence or a lack of expertise.
If the company hasn't been starting business for more than 6 months after establishment or has been stopping operation for more than 6 months without any proper cause, it will be a license revocation.
What's the consequence after a license revocation?
Above all, if the license is revoked, the company's original license, office seal and special seal for contractual uses must be turned in to Administration Office, otherwise, they will be took by public security organization.
If the company is still in operation without permission, it will be regarded as “Unlicensed Business Activities”and prosecuted for criminal liabilities.
In addition, license revocation results in:
Original company name is unavailable within 3 years(For company).
Must not serve as a director, supervisor, or manager of other companies within 3 years (For legal representative and directly responsible person).
Generally speaking, if you need to stop company's operation, it is necessary to apply for business license cancellation based on laws! Otherwise, there will be serious consequences!
PLEASE PAY ATTENTION TO HACOS WECHAT.
pics from the internet
HACOS is the original author
please inform us before repost
and indicate the resource
HACOS,Business Services Solutions Master
