What are the main reasons for canceling wholly-owned subsidiaries?
Business adjustment: the parent company or holding company adjusts its business structure according to the company's strategic needs, so it cancels some businesses or subsidiaries;
Lack of potential to generate profits: the parent company or holding company thinks that the wholly-owned subsidiary cannot generate profits and cannot support the company's development plan, so it chooses to cancel the subsidiary;
Change of industrial and commercial registration: the parent company or holding company needs to change the industrial and commercial registration information and cancel its wholly-owned subsidiary to meet the relevant industrial and commercial registration requirements.
What are the conditions for revoking a wholly-owned subsidiary?
To cancel a wholly-owned subsidiary, the following conditions are required:
A wholly-owned subsidiary must first clean up all its property and related records in the enterprise registration system;
A wholly-owned subsidiary must meet the conditions stipulated by the laws and regulations of the state concerning the cancellation of enterprises;
A wholly-owned subsidiary must be authorized by the parent company or the holding company, go through legal procedures, and reach an economic and legal agreement before the cancellation procedure can be implemented.