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Deregistration of a Beijing WFOE - Procedures and Fees

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Fees and Procedures for Deregistration of a Beijing WFOE


Unless otherwise indicated, the WFOE mentioned in this quotation refer to a limited liability company formed and registered in Beijing, China in accordance with the China Company Law and the related regulations and wholly owned by one or more foreign companies or individuals. 


Summary 

The quotation applies to situations where a WFOE registered in Beijing intends to liquidate and deregister its legal body and that no special licence or permit is involved.

Our fees for handling the deregistration for a WFOE in Beijing, China are RMB25,000 up and our fees cover the services listed in Section 1(1) of this quotation. Our service fees, however, do not include the payment of official filing charges.

The materials required include all the certificates and seals of the WFOE and others. A list of the materials is detailed in Section 3 of the quotation.

The whole process for the deregistration of a WFOE in Beijing, China takes around 6 to 8 months. It should however be noted that most of the procedures are subject to approval granted by the government departments and therefore some of the procedures may take longer than expected. 

If, due to the limitation of the WFOE’s principal business activities, the deregistration requires to deregister special licence or permit, we may need to adjust our fees and the time required may need to be extended accordingly. 


1.       Deregistration Cost


(1)      Our Service Fees

Our fees for handling the deregistration of a WFOE in Beijing, China are RMB25,000 up. In particular, our fees cover the following services:

(1) Preparation of deregistration application documents;
(2) Filing liquidation group record with the registration authorities;
(3) Arranging liquidation announcement;
(4) Application for deregistration with Commission of Commerce;
(5) Application for deregistration with Customs House;
(6) Application for tax clearance and deregistration with tax bureau;
(7) Application for deregistration of foreign direct investment registration;
(8) Application for deregistration with BAMR;
(9) Remitting out the remaining funds to the WFOE’s shareholder;
(10) Application for closing capital account;
(11) Application for closing RMB basic account.

If, due to the limitation of the WFOE’s principal business activities, the deregistration requires to deregister special licence or permit, we may need to adjust our fees accordingly.

(2)      Official Filing Fees

Our service fees stated in Section 1 (1) do not cover any official filing fees. The estimated official filing fees shall be around RMB1,500.

(3)       Liquidation Audit Costs

Our service fees stated in Section 1 (1) do not include the liquidation audit fees. A set of liquidation audit report is required for the deregistration of foreign direct investment registration. We could assist to arrange the issuance of audit report and our fees shall be quoted based on the assets and volume of transactions of the WFOE.

 (4)     Tax Filing Costs

During the liquidation and tax clearance period, the WFOE shall file tax return in due course until the tax deregistration is officially approved by the competent tax bureaus. Our service fee for monthly tax filing is RMB500. Under current practice, after the month the WFOE’s account is closed, it shall need to take at least an extra six months to prepare the deregistration documents and complete the tax deregistration procedures. For this reason, we will charge six-month’s tax filing fees (in total: RMB3,000). Any shortfall will be billed after completion of deregistration of the WFOE

2.        Payment Terms and Methods

Upon receipt of your order, we will issue an invoice to you for your settlement. We require full payment in advance before commencement of work.

If China official tax invoice is required, a Value Added Tax and Surcharges of 5% will be charged.


3.        Required Documents and Materials

The following materials are required for the purpose of the deregistration for a WFOE in Beijing, China:

(1) Business License (original & duplicate);
(2) Bank Account Opening Permit;
(3) Organizational Credit Code Certificate;
(4) Other bank stuffs;
(5) Foreign exchange registration voucher;
(6) Company seal;
(7) Personal seal of legal representative;
(8) Financial seal;
(9) Original office lease agreements;
(10) Accounting books for the latest three years;
(11) Tax returns for the latest three years;
(12) Other materials temporarily required by the registration authorities.


4.        Estimated Time Frame

Provided that the procedures go smoothly, the whole deregistration process would take around 6 to 8 months, which subject to the final approval of the various approval authorities involved in Beijing.

Step

Description

Who is Responsible

Working Days

Preliminary

1

Preparation of deregistration required documents

Investor

Investor’s schedule

2

Preparation of deregistration application documents

Kaizen

5-7

Application for Deregistration

3

Filing liquidation group record with the registration authorities

Kaizen

5-7

4

Arranging liquidation announcement

Kaizen

1

5

Application for deregistration with Commission of Commerce

Kaizen

3

6

Application for deregistration with Customs House

Kaizen

1

7

Application for tax clearance and deregistration with tax bureau

Kaizen

3-4 months

8

Application for deregistration of foreign direct investment

Kaizen

7-10

9

Application for deregistration with BAMR

Kaizen

5-7

10

Remitting out the remaining funds to the WFOE’s shareholder

Kaizen

7-10

11

Application for closing capital account

Kaizen

5-7

12

Application for closing RMB basic account

Kaizen

7-10

Around 6-8 Months



If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:
Email: info@kaizencpa.com,  enquiries@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ Wechat: +852 5616 4140
Skype: kaizencpa

Schedule 1 – Summary of Costs for Deregistration of WFOE in Beijing

A summary of costs related to the deregistration of a WFOE in Beijing, China are listed in the table below:

Item

Description

Amount

(RMB)

1

Service fees for company deregistration (Note 1)

25,000 up

2

Official filing fees for company deregistration (Note 2)

1,500

3

Disbursements

500

4

Tax filing service fee for six months (Optional)

3,000

5

Liquidation Audit costs  (Optional)

TBA

6

Translation service (Optional)

TBA

TOTAL

30,000 up


Note:
1. If, due to the limitation of the WFOE’s principal business activities, the deregistration requires to deregister special licence or permit, we may need to adjust our fees accordingly.
2. The government fees are an estimated amount. We will collect it before the commencement of services and any shortfall will be billed after completion of deregistration of the WFOE.
3. Item 4-6 will only be incurred if we are being engaged for such services.
4. If Chinese tax invoice is required, a Value Added Tax and Surcharges of 5% would be applicable.

Download: Fees and Procedures for Change of Company Name for Beijing WFOE [PDF]

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