Company Summary Deregistration Q&A

Which enterprises can apply for summary deregistration?

According to the SAIC's requirements on pilot applications, an enterprise can apply for summary deregistration if (i) it has not yet commenced business operations or (ii) it is free of debts and accounts receivable. Based on this principle, some pilot areas have imposed additional restrictions regarding good standing, company type, term of operations and/or registered capital. The Shanghai Pudong New District, for example, further requires enterprises seeking summary deregistration to be organized as limited liability companies or partnerships, and to have been organized within the last three years. Enterprises included in the directory of businesses with abnormal operations. These restrictions prevent other types of enterprises, such as sole proprietorships, from submitting applications for summary deregistration.