Today on the International Trade Resources Podcast we have taken an excerpt from a
recent webinar. The webinar is moderated by Kim Kirkendall and she is joined by
Russell Brown, and Art Dicker. They discuss the complexities and regulations involved
in closing or scaling back business operations in China, with a focus on regulatory,
financial, and strategic aspects.
This episode includes a focus on the actual liquidation process – Kim and Russell dive
into the key aspects and regulations that govern business closures in China, including
company law, taxation laws, labor law, union law, bankruptcy law, and foreign
investment enterprise law. The closure process involves interactions with government
bureaus, tax authorities, customs, state administration of foreign exchange,
administration of market regulation, banks, social welfare bureaus, and other relevant
agencies. The closure process typically begins with an application letter and involves
various documents and approvals. Tax-related matters, including transfer pricing, can
be time-consuming and complex.
Considerations for closing include deciding when to close or change operations and
announcing it to employees, complying with labor laws and severance pay, ensuring
compliance with various contracts and supplier agreements, and handling customer
relations, contracts, and asset shipments. Managing taxes is also an important aspect
to consider, including corporate income tax, import duties, customs duties, individual
income tax, property tax, and social welfare contributions.
Lastly Kim and Russell look at the planning, strategy, and procedures for closing.
Planning and strategy can include pre-planning and assessing potential liabilities,
evaluating financials and taxes, and developing a comprehensive strategy for the
closure or restructuring process. Throughout the closing process, it’s key to obtain
clearance letters from government bureaus, maintain documentation for a specified
period, and explore options for voluntary bankruptcy or restructuring if necessary.
Closing or scaling back business operations in China is a complex process that involves
a multitude of regulations, interactions with various government bureaus, and careful
planning. Learn how in this information-packed episode!
Things you’ll learn
● The complexities and regulations involved in closing or scaling back business
operations in China.
● The various regulations that govern business closures and changes in China,
including company law, taxation laws, labor law, union law, bankruptcy law, and
foreign investment enterprise law.
● The need to interact with government bureaus such as tax authorities, customs,
foreign exchange administration, market regulation, and more during the closure
process.
● Factors to consider when deciding to close or change operations, including
employee management, contract compliance, customer relations, and asset
shipments.
Episode Sponsors:
Acclime China:
https://china.acclime.com/
Corporate Services and full Accounting/CPA/Tax for China.
Website: www.intltraderesources.com
Email: intltradepodcast@gmail.com
Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.