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.

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 Image

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 Image

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.
Hong Kong Image

Hong Kong

Brazil Image

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 Image

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 Image

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 Image

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.
Indonesia Image

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 Image

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 Image

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.

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Daniel Li

Daniel Li
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Martin Aquilina
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Kun Tong
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Phil Wang
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Bessie LIU
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Fenny Tohir Tohir
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Joy Wei
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Pierre Wong
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oswald soaloan

oswald soaloan
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