Failure to cancel an enterprise will bring a series of serious consequences, which will not only affect the legal representative and relevant responsible persons of the enterprise, but also have a negative impact on the social and economic order and credit system.
I enterprise legal persons and shareholders shall bear unlimited liability.
If an enterprise fails to cancel according to law, its legal person qualification and shareholders' rights and interests will no longer be protected by law. This means that the legal representative and individual shareholders will bear unlimited liability for the debts and legal liabilities of the enterprise. Once an enterprise is involved in debt disputes or illegal acts, the relevant responsible person may face the risk of property being sealed up, frozen or enforced.
Second, corporate credit is damaged.
If an enterprise can't cancel, it will damage its credit record in the industrial and commercial departments and related credit systems. This will not only affect the normal operation and development of enterprises, but also affect the trust of partners and customers. In today's increasingly fierce market competition, credit is an important cornerstone for the survival and development of enterprises. Once damaged, it is difficult to recover.
Third, be included in the "blacklist"
Enterprises that do not cancel for a long time may be listed in the "blacklist" or "business exception list" of the industrial and commercial departments. This will lead to the damage to the reputation of enterprises in society, and it is difficult to obtain the support and preferential policies of government departments. At the same time, enterprises listed in the "blacklist" may also be jointly punished by relevant departments, such as restricting participation in bidding and applying for loans.
Fourth, the tax issue.
If the enterprise does not cancel, it may also involve tax issues. Enterprises that have not been cancelled still need to declare and pay taxes in accordance with the provisions of the tax law. If the enterprise fails to fulfill its tax obligations on time, it will face the punishment of the tax authorities and the risk of recovering taxes. In addition, enterprises that have not been cancelled may also be involved in tax evasion, tax evasion and other illegal acts, further aggravating legal responsibilities.
To sum up:
Failure to cancel an enterprise will bring many serious consequences, including unlimited liability of the enterprise legal person and shareholders, credit damage of the enterprise, being blacklisted, tax problems and so on. In order to avoid these consequences, enterprises should go through cancellation procedures according to laws and regulations to ensure that the legitimate rights and interests of enterprises and social credit are protected.
Legal basis:
Company Law of the People's Republic of China
Article 188 stipulates:
After the liquidation of the company, the liquidation group shall prepare a liquidation report, submit it to the shareholders' meeting, the shareholders' meeting or the people's court for confirmation, and submit it to the company registration authority to apply for cancellation of company registration and announce the termination of the company.
Regulations of People's Republic of China (PRC) Municipality on the Administration of Enterprise Legal Person Registration
Article 33 provides that:
If the business license of an enterprise as a legal person is revoked, the registration authority shall collect its official seal and notify its bank to cancel its registration, and its creditor's rights and debts shall be cleared by the competent authority or liquidation organization.