Closing Down Representative Offices and Liquidating Businesses in China
Published: February 2010In this issue of China Briefing, we examine the procedures for closing down representative offices and liquidating businesses in China. With the global financial crisis slowly beginning to ease and China's economic growth in recovery, many foreign investors are again looking to China as a land of opportunity.
No. of Pages: 12 pages
In this issue:
- Closing Down Representative Offices
- Liquidating Wholly Foreign-Owned Enterprises
- Liquidating Joint Ventures
- Financial and Tax Considerations when Closing a Company in China
In this issue of China Briefing, we examine the procedures for closing down representative offices and liquidating businesses in China. With the global financial crisis slowly beginning to ease and China's economic growth in recovery, many foreign investors are again looking to China as a land of opportunity. However, the chaos of the last year has resulted in a shift of the economic model on the mainland; businesses that previously were only export-focused have had to rethink their China strategy or downsize their operations. With that in mind, we outline the responsibilities foreign executives have when it comes to winding up a business in China. Updated from our earlier commentary on the subject (March 2007), we take a look at the implications of liquidating a China subsidiary, the reporting procedures that need to be followed, and the tax and legal implications of closing down operations on the mainland. It is a difficult subject that requires both attention to detail and regulatory compliance.