What is the impact of not canceling the business license?

Generally speaking, if the business license is not used or cancelled, there are several consequences:

1 is included in the exception list.

Under normal circumstances, individual industrial and commercial households will be classified as abnormal operation after more than one year without annual review, and this abnormal operation will be uploaded to the enterprise credit network, and many departments can enjoy this information.

Once the registrant of individual industrial and commercial households is included in the exception list, it will not be allowed to register new business entities or serve as other corporate legal persons.

Moreover, once you are included in the exception list, it is very troublesome for everyone to remove the exception list. You may need to go to multiple departments to handle it separately. The cost of dealing with it may not be high, but it may take more effort.

2. face tax fines.

If individual industrial and commercial households have normal operating income, but some taxes are not paid after individual industrial and commercial households stop operating, there will be late fees and fines. The late payment fee here is charged on a daily basis at the rate of 5/ 10000, which means that the longer the overdue period, the higher the late payment fee. At first, you may only owe a few hundred dollars in tax, but if you don't pay it in a few years, it may eventually rise to more than several thousand dollars.

3. Arrears from special bank accounts.

At present, some individual industrial and commercial households will open special accounts in banks, which are mainly used for normal business income and expenditure. However, opening a special bank account usually requires an annual fee, as well as SMS service fee, advanced usage fee and so on. These expenses add up to several hundred dollars a year.

If you don't go to the bank to cancel this bank account after stopping business, some fees will be overdue, and even the bank may upload these overdue information to the personal credit information system.

It may be fraudulently used by others.

At present, only one company can be registered at one address in China. If your company stops operating and fails to go through the cancellation formalities with the industrial and commercial department, then this address cannot be used to register a new enterprise as a legal person.

Cancellation of business license: /gszx/