Closure and Liquidation of Foreign Subsidiaries
Efficiently navigate the complex legal and regulatory steps for closing and liquidating foreign subsidiaries, ensuring compliance and minimizing risks in each relevant market.
Why is Closure and Liquidation Relevant for SMEs?
Exiting aforeign market or closing a subsidiary involves complex legal and regulatory processes. Proper management ensures compliance and minimizes financial and reputational risks.
Challenges Faced by SMEs in Closure and Liquidation
- Understanding the legal requirements and procedures for closing a business in a foreign jurisdiction.
- Managing the financial and operational aspects of liquidation.
- Coordinating with local authorities and creditors to ensure compliance and settlement of obligations.
What Should an SME Do Facing This Issue in a Foreign Country?
- Conduct Thorough Research: Understand the legal requirements for closing a subsidiary in the target market.
- Seek Expert Legal Advice: Consult with legal professionals to navigate the closure and liquidation process.
- Coordinate with Stakeholders: Engage with local authorities, creditors, and employees to manage the closure smoothly.
Common Scenarios
Foreign Direct Investment
Investment in, setting up, managing, and closing business entities in foreign markets, including subsidiaries, partnerships, or joint ventures.
Employment and Workforce Management
Recruitment, management, and termination of employees and contractors in foreign markets, including remote/virtual workers.
Import and Procurement
Purchase, import, and procurement of goods, products, and/or parts from foreign exporters and suppliers.
Export and International Sales
Sale and export of goods and products to foreign markets, including direct sales and sales through distributors.
Explore Legal Solutions by Country
Taiwan
- Regulatory Requirements: Must comply with the Company Act and relevant tax regulations.
- Approval Authorities: Ministry of Economic Affairs (MOEA) and National Taxation Bureau.
- Documentation: Includes dissolution applications, final tax returns, and debt clearance certificates.
Philippines
- Regulatory Requirements: Must comply with the Corporation Code and Securities Regulation Code.
- Approval Authorities: Securities and Exchange Commission (SEC) and Bureau of Internal Revenue (BIR).
- Documentation: Includes board resolutions, liquidation reports, and tax clearance certificates.
Canada
Hong Kong
Brazil
- Regulatory Requirements: Must comply with the Brazilian Corporation Law and the Bankruptcy Law.
- Approval Authorities: National Registry of Legal Entities (CNPJ) and tax authorities.
- Documentation: Includes dissolution resolutions, financial statements, and tax compliance certificates.
India
- Regulatory Requirements: Must comply with the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016.
- Approval Authorities: Requires approval from the Registrar of Companies (ROC) and potentially the Reserve Bank of India (RBI).
- Documentation: Includes board resolutions, indemnity bonds, affidavits, and financial statements.
Vietnam
- Regulatory Requirements: Must comply with the Law on Enterprises and relevant decrees on enterprise dissolution.
- Approval Authorities: Department of Planning and Investment (DPI) and tax authorities.
- Documentation: Includes a notice of dissolution, debt settlement plan, and final tax returns.
China
- Regulatory Requirements: Must comply with the Company Law and the Enterprise Bankruptcy Law.
- Approval Authorities: State Administration for Market Regulation (SAMR) and local tax bureaus.
- Documentation: Includes liquidation reports, tax clearance certificates, and creditor notices.
U.S
Indonesia
- Regulatory Requirements: Must comply with Law No. 40/2007 on Limited Liability Companies and Investment Coordinating Board (BKPM) regulations.
- Approval Authorities: BKPM and Ministry of Law and Human Rights.
- Documentation: Includes liquidation plans, financial statements, and tax clearance certificates.
Malaysia
- Regulatory Requirements: Must comply with the Companies Act 2016 and guidelines by the Companies Commission of Malaysia (SSM).
- Approval Authorities: SSM and Inland Revenue Board.
- Documentation: Includes a notice of resolution, statement of accounts, and tax clearance letters.
Thailand
- Regulatory Requirements: Must comply with the Civil and Commercial Code and the Bankruptcy Act.
- Approval Authorities: Ministry of Commerce and Revenue Department.
- Documentation: Includes liquidation resolutions, balance sheets, and tax filings.
Overcome Closure and Liquidation Challenges
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China
Daniel Li
Daniel Li
Subject Expertise
Foreign Direct Investment
,
Private Equity / Venture Capital (PE/VC)
,
Mergers and Acquisitions
,
Capital Markets & Securities
,
Commercial Contracts
,
China
Haiping Deng
Haiping Deng
Subject Expertise
Corporate
,
Commercial Contracts
,
Foreign Direct Investment
,
Mergers and Acquisitions
,
Private Equity / Venture Capital (PE/VC)
,
China
Sylvia Zhang
Sylvia Zhang
Subject Expertise
Corporate
,
Commercial Contracts
,
Dispute Resolution
,
Employment
,
Foreign Direct Investment
,
China
Hongli Sun
Hongli Sun
Subject Expertise
Commercial Contracts
,
Corporate
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Dispute Resolution
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Foreign Direct Investment
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Mergers and Acquisitions
,
China
Joseph Xue
Joseph Xue
Subject Expertise
Mergers and Acquisitions
,
Corporate
,
Private Equity / Venture Capital (PE/VC)
,
Foreign Direct Investment
,
Commercial Contracts
,
Canada
Yin Zhang
Yin Zhang
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Banking
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Commercial Contracts
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Corporate
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Family and Marriage
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Immigration
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Canada
Customer Support Trustiics
Customer Support Trustiics
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Corporate
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Regulatory Compliance
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Foreign Direct Investment
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Immigration
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Canada
Martin Aquilina
Martin Aquilina
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Commercial Contracts
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Dispute Resolution
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Foreign Direct Investment
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Mergers and Acquisitions
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China
Emilia Shi
Emilia Shi
Subject Expertise
Capital Markets & Securities
,
Commercial Contracts
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Corporate
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Dispute Resolution
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Employment
,
China
Susan Wang
Susan Wang
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Corporate
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Foreign Direct Investment
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Mergers and Acquisitions
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Other
,
Commercial Contracts
,
China
Kun Tong
Kun Tong
Subject Expertise
Banking
,
Corporate
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Capital Markets & Securities
,
Foreign Direct Investment
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Mergers and Acquisitions
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China
Phil Wang
Phil Wang
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Corporate
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Commercial Contracts
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Capital Markets & Securities
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Foreign Direct Investment
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Mergers and Acquisitions
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China
Jay Chen
Jay Chen
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Commercial Contracts
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Corporate
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Dispute Resolution
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Employment
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Foreign Direct Investment
,
China
Mary Mao
Mary Mao
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Corporate
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Commercial Contracts
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Mergers and Acquisitions
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Bankruptcy & Insolvency
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Foreign Direct Investment
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India
Abhishek Esq.
Abhishek Esq.
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Dispute Resolution
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Commercial Contracts
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Corporate
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Criminal Defense
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Employment
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China
Bessie LIU
Bessie LIU
Subject Expertise
Employment
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Mergers and Acquisitions
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Other
,
Regulatory Compliance
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Corporate
,
U.S.
Connie Dai
Connie Dai
Subject Expertise
Commercial Contracts
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Corporate
,
Employment
,
Foreign Direct Investment
,
Other
,
Indonesia
Fenny Tohir Tohir
Fenny Tohir Tohir
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Dispute Resolution
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Banking
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Bankruptcy & Insolvency
,
Capital Markets & Securities
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Commercial Contracts
,
China
Palmer Wang
Palmer Wang
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Mergers and Acquisitions
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Commercial Contracts
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Dispute Resolution
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Bankruptcy & Insolvency
,
Corporate
,
Canada
Joy Wei
Joy Wei
Subject Expertise
Corporate
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Commercial Contracts
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Immigration
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Will & Estate (and Trust)
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China
Nancy Chen
Nancy Chen
Subject Expertise
Tax
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Foreign Direct Investment
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Accounting
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Corporate
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International Trade
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China
Pierre Wong
Pierre Wong
Subject Expertise
Tax
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Accounting
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Agency
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Regulatory Compliance
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Corporate
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U.S.
Robert Liu
Robert Liu
Subject Expertise
Banking
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Bankruptcy & Insolvency
,
Capital Markets & Securities
,
Dispute Resolution
,
Administrative
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Indonesia
Roni Marpaung
Roni Marpaung
Subject Expertise
Dispute Resolution
,
Bankruptcy & Insolvency
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Criminal Defense
,
Crisis Management
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Other
,
Indonesia
oswald soaloan
oswald soaloan
Subject Expertise
Bankruptcy & Insolvency
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Dispute Resolution
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Commercial Contracts
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Foreign Direct Investment
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Landlord and Tenant matters
,
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