Laws of the People's Republic of China

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on Issues of Writing off Registration by Enterprises

GongShangQiZi [1995] No.107

May 9, 1995

Shenzhen Administration for Industry and Commerce:

Your request for instruction, ShenGongShangZhu [1995] No.6, has been received, upon deliberation, the reply is given as follows:

1.

The approval of the writing off registration by enterprises is a conduct of administrative enforcement of law by the administration for industry and commerce and a concrete measure to maintain normal economic order and protect lawful business operation. Enterprises that end business shall apply to the former registration authority to write off registration in accordance with Article 20 of the Regulations of the People's Republic of China on Administration of Registration of Corporate Legal Persons (hereinafter referred to as the Regulations).

2.

Under normal circumstances, enterprises shall write off registration in accordance with procedures prescribed in Article 21 of the Regulations upon the approval of the registration authority, which captures their business license and cachet and notifies the deposit bank of the enterprises of the registration cancellation.

3.

Where a corporate legal person has not begun business operation within 6 months after receipt of the business license or ended business for 1 year, the former registration authority may, in accordance with Article 22 of the Regulations, make a direct decision on writing off the registration capture the business license and cachet and notify the deposit bank of the enterprises of the registration cancellation.

4.

Where the business license of an enterprise has expired, further operation is forbidden. Enterprise that undertakes neither the extension procedure nor the registration writing off procedure shall be handled in accordance with the principles set out in item 3 of this reply. Enterprise that operates beyond the approved and registered business duration shall be handled in accordance with relevant regulations concerning unlicensed operation.

5.

Where the registration authority makes direct decision on registration cancellation according to item 3, liquidation of rights and liabilities of the enterprise shall be proceeded in accordance with Article 33 of the Regulations.