Company Deregistration Simplified Further
On April 16, 2021，the State Administration for Market Regulation released the Circular about Optimizing Simple Business Cancellation Procedures and Facilitating Micro and Small and Medium-sized Enterprises to Exit the Market (Exposure Draft), to gather public opinions until May 16, 2021.
The highlights are as follows:
* The draft has included all kinds of market entities that have not incurred debts or have settled debts into the scope of simple business cancellation registration;
* When applying for simplified deregistration, the company shall not have unliquidated expenses, employee wages, social insurance expenses, statutory compensation, taxes payable (late fees, fines) and other creditor's rights and obligationsand all investors shall undertake in writing to bear legal responsibility for the veracity of the above-mentioned situation；
* The time of public disclosure is reduced from 45 days to 20 days；
*A fault tolerance mechanism will be established. For example
1) If a company applies for deregistration, and it’s found that the simplified procedure is not applicable because the company is "being on the list of abnormal business operations", the company can apply for simplified procedure again after the disappearance of abnormal business operation and does not need to apply for cancellation of the public disclosure.
2) If the letter of commitment is not correctly prepared, the applicant shall correct it and make a new application.
For more information please visit the official website of State Administration for Market Regulation.
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