Liquidation procedure of foreigner invested company in Ningbo
 
Background
Most foreign investors care more about how to set up a company in China. But that is only the first step for the investment. If the operation of company finished, liquidation procedure or wingding up procedure is even more important for a foreigner invested company in Ningbo. The above picture is a brief introduction for such procedure.
 
Winding up procedures
Winding up procedures of foreigner invested company are as below:
1. Resolution of board of directors
2. Approval of authority
3. Start the procedures of winding up
(1)establish liquidation committee
(2)bullet and notice the creditors
(3)liquidate the properties of the company, identify the company's creditor's rights and debtor's liabilities
(4)sell the assets, pay the tax, liquidate the debts, pay the salary of employees
(5)make plan to dispose the remain assets
(6)make the liquidation report
4. The board of directors meeting approve the liquidation report
5. Hand over the liquidation report to approval of authority for record
6. Other procedures:
(1)apply for cancellation of registration of custom tax
(2)apply for approval of SAFE to transfer money to aboard; apply for cancellation of registration of foreign exchange and bank account
(3)apply for cancellation of registration of finance
7. Apply for cancellation of registration of business registration
8. Announcement about the termination of company
 
Legal advise
The responsibility of the shareholder of the company in Chian is limited. However, according to Company Law of the People's Republic of China, if the shareholders fail to commence liquidation within the statutory time limit, thus resulting in the depreciation, outflow, damage, or loss of the properties of the company, shareholders shall bear the liability for compensation for the debts of the company.

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