Companies that want to file for bankruptcy should ask legal support from our Chinese lawyers. The legal aspects of these matters can be explained by our team if you contact us at: www.lawyerschina.net

1. Bankruptcy in China
A presentation brought to you by LawyersChina.net
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2. When Bankruptcy is
Declared in China
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Chinese companies which are
struggling with their business and can no
longer adapt to the market changes can
file for bankruptcy.
Recent reforms undertaken by the
Chinese Government aim at improving
the conditions under which the execution
of bankruptcy can take place.
The purpose is to speed up the entire
process and the company liquidation.

3. Bankruptcy Law in China
>>
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The Enterprise Bankruptcy Law of
the People’s Republic of China is the
main document that provides guidance
as per the process of bankruptcy in the
country.
Its articles contain provisions for the
bankruptcy proceedings and the
generally associated costs, the debtor
and the creditor rights, the declaration
of bankruptcy and the final processes
for the liquidation actions.

4. >> Bankruptcy Law
in China
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The law also contains a number of
provisions regarding liquidation.
This law only applies to companies
incorporated in Mainland China and
not to those that are Hong Kong or
Macau resident companies.
If you want legal advice when closing
the business in China, you may talk to
our Chinese lawyers.

5. Bankruptcy Process in
China >>
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The bankruptcy process in China is
governed by the competent Chinese
court located in the area where the
company is incorporated.
The aim of the procedure is to satisfy
the claims of the creditors in case the
debtor is no longer able to pay his/her
debts.

6. >> Bankruptcy Process in
China
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For this purpose, the creditors can
legally request that all the assets of
the bankrupt Chinese company are
seized and distributed accordingly.
This can also apply to the assets of the
debtor that are not located in China.
Please bear in mind that our attorneys
in China can offer in-depth assistance
in bankruptcy cases.

7. Application for Bankruptcy
in China >>
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The application for bankruptcy can be
filed by the debtor himself/herself (in this
case it is voluntary) or by the creditor or
creditors.
When the bankruptcy proceedings are
filed against a debtor, he/she is entitled to
be informed that the procedure was
commenced, within approximately five
days.

8. >> Application for
Bankruptcy in China
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The most common expenses associated
with the bankruptcy proceedings in
China will include the court costs, the
expenses associated with the distribution
of assets and the expenses for the
bankruptcy administrator, the
appointed individual who will oversee the
development of the process.
Our lawyers in China can give you
more information about the applicable
laws and a guideline for the bankruptcy
process according to your specific case.

9. Legal Services in China
Our Chinese lawyers can offer to
foreigners legal advice and guidance in
matters like:
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• bankruptcy cases;
• company registration;
• tax planning;
• business management;
• debt collection.
You may contact our law firm in China
for complete legal support.

10. Thank you for your
attention!
For more information please contact us at:
office@lawyerschina.net
www.lawyerschina.net
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