Under normal circumstances, banks do not allow enterprises to cancel their registration before paying off their loans. However, if the company can't repay all its liabilities through normal liquidation procedures, it can also go through cancellation procedures and not return the loan.

Insolvency refers to the objective state that all the debtor's assets are not enough to pay off his debts. It only takes the debtor's assets as the basis of investigation, regardless of its credit, technology and labor factors, so insolvency does not necessarily lead to insolvency. Only when the debtor is insolvent and obviously lacks solvency can it constitute the cause of bankruptcy. Once the bankruptcy case is accepted by the court, regardless of whether the enterprise is profitable or not, the enterprise will enter the bankruptcy liquidation procedure and terminate its operation.

Liquidation cannot be regarded as the bankruptcy boundary, but it should be based on the externality of the company, while insolvency as the bankruptcy boundary should be based on the internal nature of the company. The former focuses on form, while the latter focuses on substance. They constitute a pair of concepts in company law and bankruptcy law. When a company gradually enters a bankruptcy situation that will touch many interests, this undoubtedly constitutes two strict monitoring points for the concept.

For any enterprise (including profit-making enterprises and loss-making enterprises), whether the enterprise continues to operate or ends liquidation and cancellation, regardless of national policies, law enforcement by relevant government departments and other factors, mainly depends on the will and decision of enterprise investors. Whether the enterprise has enough cash to maintain its daily operations. When an enterprise does not have enough cash (including cash raised by borrowing new debts and absorbing investment) to maintain its daily business activities, the operation of the enterprise (including profit-making enterprises) will automatically terminate.

Legal basis:

company law

Article 196: Branches established by foreign companies in China do not have the legal personality of China. Foreign companies shall bear civil liability for the business activities of their branches in China.

People's Republic of China (PRC) Civil Code

People's Republic of China (PRC) Civil Code