What is the minimum investment required to set up a WFOE?
Closing down a China WFOE
The Administration of Industry and Commerce (AIC) must be informed of the decision to close within seven days of the board decision.
Once the shareholders have decided to close a WFOE, a ‘liquidation committee’ must be appointed. The committee’s responsibilities include liquidating the assets of the company, preparing financial statements, settling taxes and dealing with creditor claims. The committee must be established within 15 days of the board decision to close the WFOE.
A public announcement in at least one newspaper must be issued within 60 days of the liquidation committee being established.
A liquidation report must be submitted to the Board of Directors and the relevant authorities.
Preparation of a liquidation audit by a Certified Public Accountant (CPA) detailing the financial performance and transactions of the company for the last three years before the date of declaring liquidation.
De-registration from the Ministry of Commerce and cancellation of the Approval Certificate.
De-registration from the local tax bureau and State Administration of Taxation Bureau. All tax payments must be settled before the dissolution registration.
Customs Certificate cancellation.
De-registration from the Administration of Industry & Commerce (AIC).
Close all bank accounts.