What is the legal process for terminating a business venture in China?

The legal process for terminating a business venture in China depends on the specifics of the venture. Generally speaking, the process for terminating a business venture involves the termination of the applicable form of business registration with the relevant Chinese government authorities, and any consequent other legal actions. For foreign investment ventures, such as wholly foreign-owned enterprises, joint ventures, and cooperative joint ventures, the termination of the business venture must be approved by the relevant authority in the Chinese government. The application must be filed with the Authority of State Administration For Industry and Commerce (SAIC) along with any corporate documents. A foreign investor must also submit a joint termination statement to the SAIC. In addition, the foreign investor must de-register the trademark of the business and cancel the business license. It is also necessary to cancel the residence permit and visas of the foreign investor. Furthermore, it is important to note that there are sometimes additional legal requirements in China, including obligations to pay taxes and penalties. Finally, after the approval of the SAIC, the foreign investor must obtain a business closure certificate from the administrative authority and submit it to the banks and other governmental authorities for the cancellation of tax-related obligations. These obligations must be fulfilled before the foreign investor can leave the country.

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What is the legal process for terminating a business venture in China?

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