Does the merged company need liquidation?

Legal analysis: if it is merged, it can go through liquidation procedures, but not all cases need liquidation. If it is a merger between a subsidiary and a parent company, it can generally be completed without liquidation.

Legal basis: In case of dissolution of Article 70 of the Civil Code of People's Republic of China (PRC), except for merger or division, the liquidation obligor shall form a liquidation group in time to carry out liquidation. Directors of legal persons, directors of executive organs or decision-making bodies and other members are liquidation obligors. Where laws and administrative regulations provide otherwise, such provisions shall prevail. If the liquidation obligor fails to perform the liquidation obligation in time and causes damage, it shall bear civil liability; The competent authority or interested party may apply to the people's court to appoint relevant personnel to form a liquidation group for liquidation.