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Case of Company cancellation

  • A Sino-Japanese joint venture enterprise A (Japanese shareholders 75%, Chinese shareholders 25%) began to appear a loss in 2009, while disagreement on cooperation also occurred between Japanese shareholders and Chinese shareholders. At the end of 2011, enterprise A still continued losses that Japanese shareholders planned to close enterprise A without the agreement of Chinese shareholders.
  • In early 2012, Japanese shareholders entrusted our team to close enterprise A.

  • Our services:
    • Analyze Japanese shareholders’ plan to close enterprise A from the perspective of tax, analyze relevant problems, advantages and disadvantages, and provide feasible plan for reference;
    • Based on our analysis report, under the circumstance that Chinese shareholders do not agree with the plan to close enterprise A, Japanese shareholders could consider a) acquire the shares of Chinese shareholders and then liquidate enterprise A; or b) transfer 100% of the shares of enterprise A to a third party after consultation with Chinese shareholders;
    • Japanese shareholders entrust us to assess the risk related to tax and customs for enterprise A, assess operation status, compliance issues and risks related to tax, customs and other aspects;
    • Based on our report and the final consultation result between Japanese and Chinese shareholders, Japanese shareholders firstly acquire shares held by Chinese shareholders, then transfer 100% of the shares of enterprise A to a third party (for which we assist with searching).
     Achievements:
  • In the case mentioned above, within 12 months since Japanese shareholders entrusted us, we successfully completed the divestment of enterprise A, and avoided the liquidation procedures through the transfer of shares to a third party.
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