🏢 Company setup
Enterprise Bankruptcy Law of the PRC (2007) · Yalla China
قانون الإفلاس للمؤسسات (2007) / Enterprise Bankruptcy Law (2007)
Enacted: 2006-08-27 ✅ Effective: 2007-06-01
📝 Overview
Regulates enterprise bankruptcy procedures in China including reorganization, liquidation, and settlement, providing creditor protections.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
The Enterprise Bankruptcy Law (2007) sets out: (1) Bankruptcy conditions: enterprise unable to repay due debts; (2) Procedure types: reorganization, composition, liquidation; (3) Payment priority: bankruptcy proceeding fees → labor debts → taxes → secured debts → unsecured debts; (4) Court role: competent People's Court supervises all procedures; (5) Foreign companies: subject to Chinese bankruptcy proceedings if headquartered in China.
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
In case of financial difficulties, consult a lawyer to determine if reorganization is feasible before reaching liquidation. Bankruptcy is not the end as reorganization provides a chance to continue.
📎 Official source
National People's Congress of China
🕒 Updated: 16 March 2026