Liaoning to reform simplified deregistration process for companies

Starting in March, Northeast China's Liaoning province will officially launch a pilot project to improve the reform of simplified deregistration for enterprises across the province.

As one of the 14 provinces in China involved in this pilot reform, Liaoning will further optimize its business environment, effectively improve the convenience of enterprise cancellation and improve the exit mechanism of market entities.

This reform will expand the application scope for the simplified deregistration of enterprises. Authorities will now include non-listed joint-stock companies, branches of enterprises and specialized farmer cooperatives in the range of simplified deregistration.

The application materials will be further simplified. Applicants will only need to submit the "Application Letter," "Power of Attorney of Designated Representative or Joint Agent," "Commitment Letter" and the original and a copy of the business license.

The announcement time for simplified deregistration of enterprises is expected to be shortened from 45 days (natural days) to 20 days (natural days).

Additionally, this reform will also establish a simple enterprise deregistration fault-tolerant mechanism.

Specifically, a firm announcing a simple enterprise deregistration notice can withdraw the notice once and reapply a second time in accordance with the procedures.

If an enterprise fails to submit a simple enterprise deregistration to the registration authority within the prescribed time limit after the end of the announcement period, it may apply for a second time under the procedures.