Incorporating a WOFE in China is easier now, however, shutting downa WOFE remains complicated as ever.  Some foreigners think they can just give up the WOFE by not conducting the annual registration procedures andtax filings, they are wrong, wrong, wrong.

A direct consequence of not conducting theannual registration procedures and tax filings is the business license of the WOFE will be revoked and the company can’t do business any more, but it doesn’t meaneverything related to the company will not exist. 

Most important, liability to taxes, government fees and employee salaries still exist. For personal liability please check part 2 coming tomorrow.

Related topic:

Why Business License so important?

Sourcing in China, are you ready?--Rule 1: Check the license