Now, let’s talkabout the personal liability related to not closing down the company properly.

First of all, the legal representative, directors and shareholders of the WOFE willbe put in a blacklist which will be issued to all SAIC offices in China, and PRC bordercontrol authority.

Usually, people in the blacklist will not be permitted to anyinvestment or management of any company for three years, and be refused theirentry to PRC if they want to revisit China.

Moreover, if the WFOE owes any taxes, fees, salaries or debts, it’s legal representative andthe directors could be prosecuted by the PRC authorities.

In one word, you can just give up your WOFE without closing it down properly.  But how? For answer to it, please check part 3 coming tomorrow.

Related topics:

Can I just give up my company? (part 1)

Why Business License so important?

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