Legal basis: Article 68 of the Civil Law of People's Republic of China (PRC) has one of the following reasons, and the liquidation and cancellation of registration are completed according to law, and the legal person is terminated: (1) the legal person is dissolved; (2) The legal person is declared bankrupt; (3) Other reasons prescribed by law. Where laws and administrative regulations stipulate that the termination of a legal person shall be approved by the relevant authorities, such provisions shall prevail.
Article 72 A legal person shall exist during the liquidation period, but shall not engage in activities unrelated to liquidation. The remaining property of a legal person after liquidation shall be disposed of in accordance with the provisions of the articles of association of the legal person or the resolution of the authority of the legal person. Where there are other provisions in the law, those provisions shall prevail. The legal person shall terminate when the liquidation is completed and the registration of the legal person is cancelled; If it is not necessary to register as a legal person according to law, the legal person shall be terminated at the end of liquidation.