(1)      Our Service Fees

Our fees for handling the deregistration of a branch registered in Shenzhen, China are RMB15,000. In particular, our fees cover the following services:

(1) Preparation of the deregistration documents;

(2) Application for the deregistration with the tax bureau;

(3) Closing the bank account;

(4) Cancellation of the business registration with the registry office;

(5) Cancellation of the company social insurance account;

(6) Cancellation of the company housing provident account;

(7) Cancel the seals of the branch with Shenzhen Public Security Bureau.

If special licence or permit or other extra change is required, we may need to adjust our fees accordingly.

(2)      Official Filing Fees

Our service fees stated in Section 1 (1) do not cover any official filing fees. The estimated official filing fees shall be around RMB1,000. The official filing fees will be billed with supporting official receipts.

(3)      Audit Costs

A set of tax audit reports may be required by the tax authorities for the purpose of deregistration. We could arrange the audits for you. The audit costs will be quoted and billed separately upon request.

(4)    Tax Filing Costs

The branch is still required to file tax returns during the deregistration process until the tax registration of the company has been finally cancelled. We could provide tax filing services to you during this period. Our service fees are RMB800/per month.

All the fees quoted above do not include the Value Added Tax and Surcharges of 7.5% if Chinese tax invoice (Fapiao) is required.

A summary of the fees and costs is provided in Schedule 1 to the quotation.

Upon receipt of your order, we will issue an invoice to you for your settlement. We require full payment in advance before commencement of work.

If China official tax invoice is required, a Value Added Tax and Surcharges of 7.5% will be charged.

The following materials are required for the purpose of the deregistration for a branch registered in Shenzhen, China:

(1) Business License (original & duplicate);

(2) Bank Account Opening Permit;

(3) The Company Seal;

(4) The Legal Representative Seal;

(5) The Financial Seal;

(6) Audited financial reports in the past 3 years;

(7) Latest financial statements;

(8) Latest annual EIT clearance declaration form.

Provided that the procedures go smoothly, the whole deregistration process would take around 6 months, which subject to the final approval of the various approval authorities involved in Shenzhen.

Schedule 1 - Summary of Costs

Item	Description	Amount (RMB)
1	Service fees for the deregistration (Note 1)	15,000
2	Official filing fees (Note 2)	1,000
3	Tax filing costs for 6 months (Optional)	4,800
4	Audit Costs (Note 3)	TBC
Total		20,800

Note:

1. If special licence or permit or other extra change is required, Kaizen can handle the application and our fees will be quoted upon request.

2. The government fees are an estimated amount. We will collect it before the commencement of services and any shortfall will be billed after completion of the change.

3. If you would engage Kaizen to arrange the liquidation audit, then please provide the following materials to us for our review and calculation of cost.

(1) Audited financial reports in the past 3 years;

(2) Latest financial statements;

(3) Latest annual EIT clearance declaration form.

4. Item 3-4 are optional, you could handle by yourself or engage Kaizen to handle it.