Recently the State Administration for Industry and Commerce promulgated the Guiding Opinions on Comprehensively Promoting the Reform of Summary Cancellations of Enterprise Registration (hereinafter the “Opinions”). The Opinions provide that as of March 1, 2017, enterprises in conformity with the relevant conditions may apply for summary cancellation of their registration. Such a procedure will promote the efficiency of the market exit mechanism, increase the efficiency of social resource utilization, and reduce exit costs for market participants.

   According to the Opinions, the following two main types of enterprises can apply for summary cancellation:

   1. Limited liability companies, non-corporate legal persons, sole proprietorship enterprises and joint ventures that do not carry out operational activities after they obtain their business licenses; and

   2. Limited liability companies, non-corporate legal persons, sole proprietorship enterprises and joint ventures that have not incurred credits or debits or that have settled all of their credits and debits before applying for cancellation of registration.

   The aforesaid two types of enterprises can choose either the ordinary cancellation procedure or the summary cancellation procedure.

   For the full text of the Opinions, please click on the following URL:

   http://qyj.saic.gov.cn/wjfb/gszjfb/201612/t20161227_173756.html

Via www.saic.gov.cn