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Doing business in China these days is hard. After describing my experience of starting my firm, SJGrand, in Beijing during the SARS crisis, I received hundreds of messages from entrepreneurs who want to keep their firms in China, but fear that this will lead to certain failure. "Should I stay or should I go now?" are not the only options. There is an intermediate alternative which will allow you to postpone this decision while incurring minimal operational costs: going dormant.


Even if you have already made up your mind about closing your business in China down, you will have to wait for 18 months. Hence, why not consider another path that will allow you to resume operations as soon as the uncertainty subsides or to sell your firm at any point in time.


There is no official dormant status in mainland China as in Hong Kong, but it is legal to be a dormant firm in practice as long as certain requirements are met. Since the risks of not fulling these requirements include being blacklisted, it is important to be well-informed. You can download a guide about the benefits and requirements of being dormant in mainland China following this link.


SJGrand can advise you on the specific advantages/costs for your company to go dormant. We can also  advise you on other strategies to reduce your risk exposure and costs in these uncertain times. We offer an initial 20-minute videoconference/phone call consultation with our experienced management for CNY 600.

We also offer you a solution to minimize the risk of infection by allowing you to comply fully with Chinese regulations while working remotely. You can ask for more information about our multilingual Kwikdroid here.