Today on the International Trade Resources Podcast we have taken an excerpt from arecent webinar. The webinar is moderated by Kim Kirkendall and she is joined byRussell Brown, and Art Dicker. They discuss the complexities and regulations involvedin 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 diveinto the key aspects and regulations that govern business closures in China, includingcompany law, taxation laws, labor law, union law, bankruptcy law, and foreigninvestment enterprise law. The closure process involves interactions with governmentbureaus, tax authorities, customs, state administration of foreign exchange,administration of market regulation, banks, social welfare bureaus, and other relevantagencies. The closure process typically begins with an application letter and involvesvarious documents and approvals. Tax-related matters, including transfer pricing, canbe time-consuming and complex.Considerations for closing include deciding when to close or change operations andannouncing it to employees, complying with labor laws and severance pay, ensuringcompliance with various contracts and supplier agreements, and handling customerrelations, contracts, and asset shipments. Managing taxes is also an important aspectto consider, including corporate income tax, import duties, customs duties, individualincome 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 theclosure or restructuring process. Throughout the closing process, it’s key to obtainclearance letters from government bureaus, maintain documentation for a specifiedperiod, and explore options for voluntary bankruptcy or restructuring if necessary.Closing or scaling back business operations in China is a complex process that involvesa multitude of regulations, interactions with various government bureaus, and carefulplanning. Learn how in this information-packed episode!Things you’ll learn● The complexities and regulations involved in closing or scaling back businessoperations in China.● The various regulations that govern business closures and changes in China,including company law, taxation laws, labor law, union law, bankruptcy law, andforeign investment enterprise law.● The need to interact with government bureaus such as tax authorities, customs,foreign exchange administration, market regulation, and more during the closureprocess.● Factors to consider when deciding to close or change operations, includingemployee management, contract compliance, customer relations, and assetshipments.Episode Sponsors:Acclime China:https://china.acclime.com/Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: [email protected] 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.

Ver todos los episodios