Is branch cancellation a reorganization?

The revocation of a company's branches is not a reorganization. Revocation of a branch refers to the termination of the company's operation after the business term expires and the business license is revoked, and the debt liquidation is completed as agreed, while the company restructuring refers to the behavior of a limited liability company and a joint stock limited company to change the company form for production and operation, which does not lead to the termination of the company.

legal ground

Article 9 of the Company Law of People's Republic of China (PRC)

When a limited liability company is changed into a joint stock limited company, it shall meet the conditions of a joint stock limited company as stipulated in this Law. When a joint stock limited company is changed into a limited liability company, it shall meet the conditions of a limited liability company as stipulated in this Law.

Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.

Article 95

When a limited liability company is changed into a joint stock limited company, the total amount of capitalization shall not be higher than the company's net assets. When a limited liability company is changed into a joint stock limited company, the public offering of shares for the purpose of increasing capital shall be handled according to law.