It is best to cancel. If you don’t want to cancel, you can go to the industrial and commercial office to go through the business closure procedures.

If you fail to do the annual inspection during the annual inspection, your integrity in industry and commerce will be reduced, and it will have some impact when you apply for a business license next time you do business. There are always some troubles with taxes at the end of the year.

If it is canceled abnormally, it will be deemed to be automatically canceled if the annual inspection is not carried out in the second year.

A revoked enterprise or individual operator will be blacklisted by the Industry and Commerce Bureau and may not be able to use his or her name to register a company within 3 years. A bad personal credit record will remain for 7 years and will be fined. .

Extended information:

Materials required for deregistration of individual industrial and commercial households:

1. Copy of operator’s ID card

2. Original copy of the business license

3. If an agent is entrusted to handle the matter, submit the "Authorization Certificate" signed by the operator and a copy of the entrusting agent's identity document

4. Submit state and local tax cancellation notice for renewal of unified social credit code

A business license is a certificate issued by the industrial and commercial administration to industrial and commercial enterprises and self-employed individuals allowing them to engage in certain production and business activities. Its format is uniformly stipulated by the State Administration for Industry and Commerce.

The registration matters are: name, address, person in charge, amount of funds, economic composition, business scope, business method, number of employees, business period, etc.

The business license is divided into original and duplicate, both of which have the same legal effect. The original copy shall be placed in a conspicuous place at the company's residence or business premises, and the business license shall not be forged, altered, rented, lent or transferred.

Industrial and commercial enterprises or self-employed individuals without a business license are not allowed to open their business. They are not allowed to engrave official seals, sign contracts, register trademarks, or publish advertisements. They are not allowed to open bank accounts.

Reference material: Business license - Baidu Encyclopedia