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Dormant vs Closed: Is China’s New Dormant Company Policy Right for You?



  • Title: Dormant vs Closed: Is China’s New Dormant Company Policy Right for You?
  • Date: May 6th, 2022

Since the outbreak of Covid 19, many enterprises have been heavily impacted by the pandemic and have been unable to bear the daily costs of keeping operations running. However, rather than closing, some companies are eager to continue business once situations improve.

To boost the market and economy, the Chinese government has implemented a new policy titled “Business Suspension Filing”, also known as the “Dormant Company Policy”. The policy allows enterprises to suspend business legally for a certain period of time and resume operations when ready.

It is essential for the survival of enterprises to understand and take advantage of such policies to lower costs during challenging times. 

Join us as we discuss the implementation of the Dormant Company Policy in China and deep dive into the below topics:

  • Why has China introduced the Dormant Company Policy? 
  • What is a dormant company according to Chinese legislation?
  • Key points to be aware of under the new policy
  • Benefits for dormant companies
  • What is expected to be further clarified by the government?

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