What are the legal consequences of enterprise cancellation and revocation?

1. Enterprise cancellation

The consequence is that the company's legal person qualifications are terminated, provided that liquidation is carried out in accordance with the law. This is an active act of the company's legal person. Enterprise cancellation is due to improper management of the enterprise, acquisition by other companies, non-renewal of the prescribed business period, or internal dissolution of the company, etc., and the company shall take the initiative to cancel the company in accordance with the law.

2. Enterprise revocation

The consequence is that the company's legal person qualifications are terminated. It is an administrative penalty imposed by the Administration for Industry and Commerce on illegal enterprise legal persons in accordance with the national industrial and commercial administrative regulations.

The "Regulations on the Registration and Management of Enterprise Legal Persons" stipulates that "if an enterprise legal person has its business license revoked, the registration authority shall collect its official seal and inform the bank where it opened its account of the cancellation of registration. Its claims and debts shall be settled by the competent department or The liquidation organization is responsible for the cleanup.”

If it is not established within the time limit, the creditor may apply to the People's Court to appoint relevant personnel to form a liquidation team for liquidation. After the liquidation is completed, the liquidation team shall prepare a liquidation report, submit it to the relevant competent authority for confirmation, and submit it to the industrial and commercial registration authority to apply for deregistration and announce the company's termination. Extended information

Reasons for revocation:

1. False registration

That is, the situation of defrauding registration by using various false documents (including false registered capital certificates, etc.). This is almost the same reason used for all types of business license revocation.

Whether it is a sole proprietorship, a partnership, a company, or any other type of enterprise, any business license that is obtained through false registration or deception may be revoked if the circumstances are serious.

2. Failure to open or suspend business without reason

Article 225 of the "Company Law" and Article 62 of the "Company Registration Management Regulations" both stipulate that: after the establishment of the company, there are more than 6 legitimate reasons. If the company fails to open business within a month, or if it voluntarily ceases business for more than 6 consecutive months after opening, the business license will be revoked by the company registration authority.

Except for the "Registration and Management Measures for Partnership Enterprises" which does not include this, the "Registration and Management Measures for Sole Proprietorships" and the "Regulations on the Registration and Management of Enterprise Legal Persons" expressly stipulate this as a reason for revoking a business license.

3. Failure to apply for cancellation

That is, if the enterprise fails to apply for cancellation after bankruptcy or dissolution and liquidation, the business license of the enterprise that exists in name only may be revoked. Except for the "Registration and Management Measures for Sole Proprietorships" which does not provide for this, other enterprise registration regulations allow this to be used as a reason for revoking a business license.

4. Avoiding annual inspections

The annual inspection system of enterprises is intended to review the operating status of enterprises every year and file and publicize it. This is a necessary means for the state to manage enterprises and maintain business order. Most countries All corporate laws have similar systems. If an enterprise passes the annual inspection by false means or simply fails to participate in the annual inspection, it may be punished by revoking its business license.

Except for the "Sole Proprietorship Registration and Management Measures", other enterprise registration regulations use this as a reason for revoking a business license. The practical standard is that when an enterprise fails to participate in annual inspections for two consecutive years, its business license can be revoked.

5. Abuse of license

The license is issued to a specific object, and the content on the license is also specially recorded after specific review, and the license itself cannot in principle be used for profit-seeking means.

Any act of forging, altering, renting, lending, or transferring a business license will substantially undermine the order of license issuance and may lead to the revocation of the business license. This point is stipulated in almost all enterprise registration management regulations.

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