Closing an office in China?

Question

If we are closing our office in China and letting the staff go, what are the laws and regulations we need to be mindful of?

Tom, thanks. It's WOFE in Shanghai. Anything we need to be careful of when terminating the staff? We plan to pay out their notice period (one month) and pay severance of one month per year of service. Are we missing something?

Answer 1

Hard to answer without more information.

Is this a representative office or JV? WOS? Which province is the office located? Do you have a Chinese business license and if so, what type of business is it.. LTD., ETC..

If you only have a representative office in China, then you have no tax liability cause technically you shouldn't have been earning any profit. If JV then it should be according to the terms of the JV contract.. Of Wholly Owned Subsidiary, so long as your taxes are paid up to date, there isnt any problem at all.. Should be fine to remove your office..