When you are losing, exit by the book: simplified deregistration if you qualify, bankruptcy if insolvent—don't walk away

No debts, no unpaid wages, tax, or social insurance: all investors sign a commitment; 20-day public notice with no objection → simplified deregistration. Sole proprietors skip the notice; no objection within 10 days → deregister. Company can't pay debts → may apply for bankruptcy. Ignore filings for 2 years and become unreachable → license revoked; responsible legal representative barred from that role for 3 years.

Cost

Simplified deregistration you can do yourself: post on the National Enterprise Credit Information Publicity System for 20 days. If debts remain, clear the books first—collect what you're owed, pay what you owe; that step is liquidation. Bankruptcy needs a court filing and takes months. The hard part is facing losses instead of stalling.

Benefit

No debts owed or owed to you, or all settled; no unpaid wages, social insurance, or tax; all investors' written commitment—then 20-day notice with no objection allows simplified deregistration. Sole proprietors: no notice; if authorities raise no objection within 10 days, direct deregistration. Company can't pay due debts and liabilities exceed assets (insolvent): may apply to court for reorganization, composition, or bankruptcy liquidation. Already dissolved without liquidation and insolvent: those responsible for liquidation must apply for bankruptcy liquidation. Neglect: late annual report → abnormal operation list. Two consecutive years no report, still on the list unchanged, and unreachable at the registered address → business license revoked. If the enterprise is revoked and the legal representative bears personal responsibility, that person may not serve as legal representative, director, supervisor, or senior manager for 3 years from revocation. Already on the abnormal list → no simplified deregistration (nationwide).

Notes

Enterprise Information Publicity Interim Regulations revised by State Council Order 777, effective 1 May 2024, unchanged since. Old Article 17 (three years abnormal → serious illegal enterprise list) is gone. The serious untrustworthy list now targets enterprises with serious false annual reports. Many online posts still cite the old text—don't copy them. When and how to file annual reports, and how to catch up: item 25. Individual bankruptcy (including sole props) is still only piloted in some regions; this section did not verify primary sources, so it is not covered.

Sources · 6

1. 国务院 (2021). 市场主体登记管理条例（国务院令第 746 号，第三十一、三十二、三十三条）. gov.cn/zhengce/zhengceku/2021-08/24/content_5…
2. 市场监管总局等六部门 (2025). 企业注销指引（2025 年修订）（2025 年第 52 号公告）. gov.cn/zhengce/zhengceku/202512/content_70532…
3. 全国人大常委会 (2006). 企业破产法（第二、七条）. gov.cn/gongbao/content/2006/content_413952.htm
4. 国务院 (2024 修订). 企业信息公示暂行条例（国务院令第 777 号修订，第十八条）：「企业因连续2年未按规定报送年度报告被列入经营异常名录未改正，且通过登记的住所或者经营场所无法取得联系的，由县级以上市场监督管理部门吊销营业执照」. flk.npc.gov.cn/detail?id=ff8081819c46fcc5019c…（国家法律法规数据库）；国务院 (2024). 关于修改和废止部分行政法规的决定（国务院令第 777 号）. gov.cn/gongbao/2024/issue_11246/202403/conten…
5. 市场主体登记管理条例（第十二条第四项）与公司法（2023 年修订，第一百七十八条第一款第四项）：担任因违法被吊销营业执照的企业的法定代表人并负有个人责任的，自被吊销营业执照之日起未逾 3 年不得担任法定代表人和董事、监事、高级管理人员. gov.cn/zhengce/zhengceku/2021-08/24/content_5…
6. gov.cn/yaowen/liebiao/202312/content_6923395.htm