The cancellation and revocation of a business license are two different legal statuses, and although they both involve the termination of the operation of the enterprise, there are significant differences in the legal procedures and consequences between the two.
First of all, we need to clarify what is the cancellation and revocation of a business license. Deregistration refers to the act of an enterprise applying to the industrial and commercial department for termination of operation in accordance with legal procedures, and being approved for termination after review. Revocation refers to a punishment measure imposed by the industrial and commercial department on its business license in accordance with the law because the enterprise has violated relevant laws and regulations.
Next, let's look at the difference between the two. Deregistration is an initiative of the enterprise and is carried out after the enterprise has completely ceased its operations. Before deregistration, the enterprise needs to liquidate the creditor's rights and debts, close all business relationships, and return the business license. After the cancellation, the legal personality of the enterprise disappears, the industrial and commercial department issues a cancellation announcement, and the enterprise officially withdraws from the market.
The revocation means that the enterprise is forced to terminate its operation by the industrial and commercial department because of violating the law. An enterprise whose business license has been revoked still has its legal personality, but it must liquidate its claims and debts within the prescribed time, pay off the fine, etc., and accept the penalty before it is possible to re-obtain the business license.
In addition, the cancellation and revocation of a business license are also different in terms of legal liability. Deregistration is the termination of the operation of the enterprise in accordance with the legal procedures, so it will not give rise to additional legal liabilities. Revocation is a penalty measure imposed by the industrial and commercial authorities on the enterprise, and the enterprise may bear corresponding legal liabilities, such as fines.
To sum up, although the cancellation and revocation of business licenses are both in the state of termination of business of enterprises, there are significant differences in their reasons, procedures, legal consequences, etc. In the course of operation, enterprises shall comply with relevant laws and regulations to avoid having their business licenses revoked due to violations of the law. If an enterprise really needs to terminate its operation, it should take the initiative to go through the deregistration procedures to avoid unnecessary legal risks arising from failure to deregister in time. At the same time, enterprises should also pay attention to safeguarding their legitimate rights and interests in their daily operations, and should take timely measures to protect their rights in case of infringement such as revocation of business licenses.