1, investors liquidate themselves or creditors apply to the people's court for liquidation;
2. If the investor liquidates itself, it shall notify the creditor in writing within fifteen days before liquidation;
3. Creditors declare their claims;
4. Pay off debts;
5. After the liquidation, the investor or the liquidator designated by the people's court shall prepare a liquidation report and cancel the registration with the registration authority within 15 days.
Legal basis: Law of People's Republic of China (PRC) Municipality on Wholly Owned Enterprises.
Article 27 When a sole proprietorship enterprise is dissolved, it shall be liquidated by the investors themselves or the creditors shall apply to the people's court to appoint a liquidator for liquidation. Investors who liquidate themselves shall notify creditors in writing within 15 days before liquidation. If it is impossible to notify, it shall be announced. Creditors shall declare their creditor's rights to investors within 30 days from the date of receiving the notice, or within 60 days from the date of announcement if they have not received the notice.
Article 28 After the dissolution of a sole proprietorship enterprise, the original investor is still liable for paying off the debts of the sole proprietorship enterprise during its existence, but if the creditor fails to make a payment request to the debtor within five years, the liability shall be extinguished.
Article 32 After the liquidation of a sole proprietorship enterprise is completed, the investor or the liquidator designated by the people's court shall prepare a liquidation report and cancel the registration with the registration authority within 15 days.