Detailed process of liquidation and cancellation of the company

Legal analysis: company liquidation cancellation process: 1. Set up a liquidation team and start liquidation. 2. Notify or announce the creditors and register their claims, and the creditors shall declare their claims to the liquidation group. 3. The liquidation group shall clean up the company's property, prepare the balance sheet and property list, and formulate the liquidation plan. 4. Disposal of assets, including collection of accounts receivable and sale of non-monetary assets. Among them, uncollectible accounts receivable should be treated as bad debts, and losses can be deducted only after approval by the tax authorities. 5. Pay off the debt. After paying the liquidation expenses, the company's property (excluding the secured property) shall pay off the debts in legal order, that is, pay the employees' wages, social insurance expenses and legal compensation, pay the taxes owed and pay off the company's debts. 6. Distribution of surplus property. If the company's property has a surplus after paying liquidation expenses and paying off debts, it shall be distributed to investors according to the proportion of capital contribution or shareholding, and the distribution of surplus property shall be regarded as external sales, and the hidden gains and losses shall be confirmed. The company's property shall not be distributed to shareholders before it is paid off in accordance with the provisions of the preceding paragraph. 7. Make a liquidation report and apply for cancellation of company registration.

Legal basis: People's Republic of China (PRC) Company Law.

Article 183 Where a company is dissolved due to the provisions of Item (1), Item (2), Item (4) and Item (5) of Article 180 of this Law, a liquidation group shall be established within 15 days from the date when the reasons for dissolution appear to start liquidation. The liquidation group of a limited liability company is composed of shareholders, and the liquidation group of a joint stock limited company is composed of directors or personnel determined by the shareholders' meeting. If a liquidation group is not established for liquidation within the time limit, the creditor may apply to the people's court to appoint relevant personnel to form a liquidation group for liquidation. The people's court shall accept the application and promptly organize a liquidation group to carry out liquidation.

Article 184 During the liquidation period, the liquidation group shall exercise the following functions and powers: (1) Clean up the company's assets and prepare a balance sheet and a list of assets respectively; (2) Notify and announce creditors. (3) Handling the unfinished business of the company related to liquidation; (four) to pay the taxes owed and the taxes generated in the liquidation process; (5) Clearing up creditor's rights and debts; (6) Disposing of the company's remaining property after paying off debts; (seven) to participate in civil litigation activities on behalf of the company.

Article 185 The liquidation group shall notify creditors within 10 days from the date of its establishment and make an announcement in a newspaper within 60 days. Creditors shall, within 30 days from the date of receiving the notice, and within 45 days from the date of announcement if they have not received the notice, declare their claims to the liquidation group. When a creditor declares its creditor's rights, it shall explain the relevant matters of the creditor's rights and provide supporting materials. The liquidation group shall register the creditor's rights. During the declaration of creditor's rights, the liquidation group shall not pay off the creditors.

Article 186 After clearing up the company's assets, preparing the balance sheet and list of assets, the liquidation group shall formulate the liquidation plan and report it to the shareholders' meeting, shareholders' meeting or the people's court for confirmation. After paying the liquidation expenses, employees' wages, social insurance expenses and statutory compensation, paying the taxes owed and paying off the company's debts, the company's property shall be distributed according to the proportion of capital contribution of shareholders of a limited liability company and the proportion of shares of shareholders of a joint stock limited company. During the liquidation period, the company shall survive, but shall not carry out business activities unrelated to liquidation. The company's property shall not be distributed to shareholders before it is paid off in accordance with the provisions of the preceding paragraph.