(1)       Our Service Fees

Our fees for handling the deregistration of a FICE in Beijing, China are RMB30,000. 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 tax clearance and deregistration with tax bureau;

(6) Application for deregistration of foreign direct investment registration;

(7) Application for deregistration with BAMR;

(8) Application for deregistration of the foreign trade operator registration;

(9) Application for cancelling customs and inspection and quarantine registration;

(10) Application for cancelling the foreign exchange registration for trading;

(11) Remitting out the remaining funds to the FICE’s shareholder;

(12) Application for closing capital account;

(13) Application for closing RMB basic account

If, due to the limitation of the FICE’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. The official filing fees will be billed with supporting official receipts.

(3)       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 FICE.  

 (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 deregistration decision is made by the shareholder of the WFOE, it shall 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.

A summary of the fees and costs is provided in Schedule 1 to the quotation.

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 7.5% will be charged.

The following materials are required for the purpose of the deregistration for a FICE 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) Customs Registration Certificate;

(13) Foreign Trade Operator Registration Form;

(14) Inspection and Quarantine Registration Form;

(15) E-port IC Cards;

(16) Other materials temporarily required by the registration authorities.

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 tax clearance and deregistration with tax bureau	Kaizen	3-4 months
7	Application for deregistration of foreign direct investment registration	Kaizen	7-10
8	Application for deregistration with BAMR	Kaizen	5-7
9	Application for deregistration of the foreign trade operator registration	Kaizen	5-7
10	Application for cancelling customs and inspection and quarantine registration	Kaizen	7-10
11	Application for cancelling the foreign exchange registration for trading	Kaizen	7-10
12	Remitting out the remaining funds to the WFOE’s shareholder	Kaizen	7-10
13	Application for closing capital account	Kaizen	5-7
14	Application for closing RMB basic account	Kaizen	7-10
Around 6-8 Months

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

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

Note:

1.      If, due to the limitation of the FICE’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 FICE.

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.