At present, there are two kinds of operation period for a company in China. One is a fixed period, for example, 10 years or 15 years or more. Another is a period with an open-ended period. Most of industries can decide the operation period according to their business needs. Just a little special industries' operation periods need to be approved by the related government departments.
When the company's operation period can be decided by the company, which kind of period is better for the company?
Some people think a fixed period is better for them, as when a company's registered period expires, the company can be automatically closed by the registration office, there is no other process needs to be done for the company's closure. It is not like that. When the business operation period expires, the company still needs to do necessary closure process in the registration office. The closure process almost is as same as the closure for the un-expired operation period.
Considering below two reasons, it is better for a company to choose open-ended operation period.
1. Some works in China is relevant to the company's operation period, for example, applying for working visa, resident permit;
2. Renewing cost and waiting time. When a company with a fixed operation period expires, if continues the business, the company needs to renew the business license at the registration office.
#Choose a Suitable Operation Period for the Company
wcx@ruanyinchina.com
86-189 1629 8482
