Closing a WOFE in China

Started a business in China with HK Ltd company, registered as a WOFE. however, business has a turn for the worse. Looking to close opertions but seems to be fraught with difficulties


Has anybody had any experience or can offer any advice?

You may go through the voluntary liquidation procedure. In that case, the first step you need take is to obtain the approval from the "approval authority", which is a local branch of MOFCOM.


Then set up a liquidation committee and make public announcements.


The liquidation committee shall settle all debts, pay off the employees, etc. and finish a liquidation report.


Proceed with de-registration procedures with all relevant authorities, especially the tax authority.

Closing a WOFE is much much more complicated than its establishment in terms of prcoesses, documents, duration and costs. I'd experience in the closing. The main process follows: 1. write the board of directors/director's letter to cancel the company 2. prepare the tax clearance report from accounting firm 3. post the announcement of company closing on the local newspaper 4. turn in those documents to local foreign economic & trade bureau for the permission 5.with its permission, you need organize a clearance committee to start the clearance 6. prepare the clearance report from the accounting firm 7. national tax registration cancelling 7. local tax registration cancelling & office/company office rental tax payment, besides the cancelling from the social insurances department is also needed 8. make newspaer announcement for company cancelling 9. customs registration cancelling 10. with all those premissons/results, start permission from business license registration department 11. organization code cancelling 12. foreign currency registration cancelling 13. bank account cancelling

and THAT'S ALL.....If you need any help or servoce from us, you may drop me an mail to dmc_canto@yahoo.com 13570993252 Our web is www.dmc-canto.com