Enterprises that do not operate or cancel for a long time will face a series of serious consequences. First of all, if the company's long-term declaration is zero, it may be blacklisted by the tax bureau; Secondly, if the company fails to operate for more than six months without justifiable reasons, the company registration authority may revoke its business license according to law; Moreover, the legal representative of the company shall not apply for or hold senior management positions such as directors and supervisors of other companies within three years nationwide. In addition, if the company fails to make an annual report for three consecutive years or commits other serious illegal acts, the legal representative and shareholders' meeting will be blacklisted by the Industrial and Commercial Bureau, and a new company cannot be registered for three years. These measures are aimed at urging enterprises to fulfill the cancellation procedures in time and avoid unnecessary legal and credit risks.
Responsibilities and obligations of the legal representative of the enterprise:
1. Signing important documents on behalf of the enterprise: the legal representative has the right to sign contracts and handle enterprise affairs on behalf of the enterprise;
2. Participate in enterprise decision-making: the legal representative usually participates in major decisions of enterprises;
3. Conducting legal acts abroad: the legal representative can conduct legal acts such as litigation on behalf of the enterprise;
4. Responsible for the daily management of the enterprise: the legal representative is responsible for the daily management of the enterprise;
5. Abide by laws and regulations: The legal representative shall ensure that the enterprise abides by relevant laws and regulations;
6. Bear corresponding responsibilities: The legal representative may bear civil, administrative and even criminal responsibilities for the actions of the enterprise.
To sum up, if an enterprise does not operate or cancel its business for a long time, it will face serious consequences, including being blacklisted by the tax bureau, having its business license revoked, its legal representative being unable to hold senior management positions, being blacklisted by the industrial and commercial bureau, and so on. These measures are aimed at urging enterprises to fulfill cancellation procedures in time and avoid legal and credit risks.
Legal basis:
Company Law of the People's Republic of China
Article 2 1 1
If a company fails to start business for more than six months after its establishment without justifiable reasons, or if it stops business for more than six months after its opening, its business license may be revoked by the company registration authority. When the registered items of the company change, if the relevant change registration is not handled in accordance with the provisions of this law, the company registration authority shall order it to register within a time limit; Those who fail to register within the time limit shall be fined not less than 10,000 yuan but not more than 100,000 yuan.