According to the provisions of the Company Law of China, after a company's business license is revoked, a liquidation team should be established to carry out liquidation and apply for deregistration to the company registration authority after the liquidation is completed. It can be seen that revocation does not mean cancellation, revocation refers to the revocation of the business license, and cancellation refers to the cancellation of the company's market entity qualification. Revoking a business license is an administrative penalty imposed by administrative authorities on a company. A company whose business license has been revoked cannot continue to engage in business activities, but its market subject qualification will only be extinguished after completing the company's deregistration registration. Revocation only turns the company into a zombie enterprise, and cancellation is the key to obtaining the company's death certificate. This statement vividly illustrates the relationship between revocation and cancellation.

After the company's business license is revoked, it should be liquidated and deregistered in accordance with the law. Otherwise, it will face the following legal risks:

1. The risk that the company will be subject to tax penalties

According to Article 26, Paragraph 2 of the Tax Registration Management Measures and Article 60, Paragraph 1, Item (1) of the Tax Collection Management Law, if a company has its business license revoked, it shall apply to the original tax registration authority for cancellation of tax registration within 15 days from the date of revocation of the business license; If a company fails to declare and cancel its tax registration within the prescribed time limit, the tax authority shall order it to make corrections within a specified time limit and may impose a fine of not more than 2000 yuan; If the circumstances are serious, a fine of not less than 2000 yuan but not more than 10000 yuan shall be imposed.

2. The risk of civil liability borne by the liquidation obligor of the company

Article 70, paragraphs 2 and 3 of the Civil Code stipulate that members of the executive or decision-making bodies such as directors and directors of a legal person are liquidation obligors. If the liquidation obligor fails to fulfill the liquidation obligation in a timely manner and causes damage, it shall bear civil liability. In addition, according to Article 183 of the Company Law, if a company is dissolved due to the revocation of its business license, a liquidation group shall be established within 15 days from the date of the occurrence of the cause of dissolution to begin liquidation. The liquidation team of a limited liability company is composed of shareholders, while the liquidation team of a joint stock limited company is composed of directors or personnel determined by the shareholders' meeting. Article 18 of the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (II) (2020 Amendment)" further stipulates that shareholders of a limited liability company, directors and controlling shareholders of a joint stock limited company fail to establish a liquidation group within the statutory time limit to initiate liquidation, resulting in the depreciation, loss, damage or loss of the company's assets, or, due to negligence in fulfilling obligations, resulting in the company's main assets, accounting books If important documents are lost and cannot be liquidated, the company shall be liable for compensation for the company's debts within the scope of the losses caused, or shall be jointly and severally liable for the repayment of the company's debts; If the above situation is caused by the actual controller, the actual controller shall bear corresponding civil liability for the company's debts.

3. Risk of restrictions on the appointment of legal representatives of companies with personal responsibility

According to the provisions of Article 146, Paragraph 1 (4) of the Company Law, a person who serves as the legal representative of a company or enterprise whose business license has been revoked or ordered to close due to violation of the law and is personally responsible shall not serve as a director, supervisor, or senior manager of the company within three years from the date of revocation of the business license.

4. The risk of accelerated maturity of subscribed capital by company shareholders cannot be avoided

According to Article 22 of the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (II) (2020 Amendment)", after the company's business license is revoked, the unpaid capital contributions of shareholders (including those that are due but unpaid and those that have not yet been paid in installments) shall be treated as liquidation assets; When the company's assets are insufficient to repay its debts, the unpaid shareholders and other shareholders or initiators at the time of establishment of the company shall bear joint and several liability for the repayment of the company's debts within the scope of unpaid capital contributions.