If the company has not been in business for more than six months, after inspection by the Industrial and Commercial Bureau, the enterprise (company) will be punished and its license may also be revoked.

After an enterprise legal person has its business license revoked, although the company continues to exist, it no longer has the business qualifications and is not allowed to engage in business activities unrelated to liquidation. Before the registration authority approves its deregistration, the revoked enterprise still has the qualifications to be a litigation subject. If the shareholders or investors of the enterprise fail to organize liquidation in accordance with the law, they can participate in the lawsuit as a co-defendant and bear the liability for liquidation based on the application of the creditor. A revoked enterprise shall liquidate its claims and debts in accordance with the law, handle deregistration, and terminate the company after deregistration by the company registration authority.

Relevant information about the revoked company and its legal representative is recorded in the "blacklist" database of the State Administration for Industry and Commerce and released to the national industrial and commercial system. Anyone who serves as the legal representative of a company or enterprise whose business license has been revoked due to violation of laws and bears personal responsibility shall not serve as a director, supervisor, or senior manager of any company within three years from the date the company or enterprise has its business license revoked.