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Beijing Yingtong Law Firm has focused on the protection of the rights and interests of private enterprises for many years. It has represented many corporate rights protection cases in the legal practice of rights protection in natural resources, mining, land, waters, territorial space, corporate equity, criminal defense, factory demolition, environmental protection shutdown, prohibition and vacation, etc., including large-scale real estate...

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How to obtain reasonable compensation when an enterprise is facing closure and demolition! Business owners who have been demolished must not miss it

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Article author:Yingting Lawyers Group | Update time:2019-07-22 | Reading times:293

Enterprise demolition is a major event for the survival and development of the enterprise. Whether the enterprise can obtain reasonable compensation for demolition is directly related to the future development of the enterprise, and even directly affects the life of the business owner. Here, based on years of experience in handling corporate demolition cases, Beijing Yingtong Law Firm will analyze how companies can obtain reasonable compensation when faced with demolition. This is for reference only. Please communicate with us regarding specific questions.

How to obtain reasonable compensation when an enterprise is facing closure and demolition! Business owners who have been demolished must not miss it


Impact of enterprise demolition on enterprises

Compensation for enterprise demolition mainly includes items

1. Compensation costs for demolished assets, including land use rights, factories, warehouses, other buildings and ground attachments, as well as compensation for machinery and equipment lost due to relocation, etc.

2. Losses due to suspension of production and business operations generally include both actual operating losses and expected operating losses as appropriate.

3. Compensation costs for demolition, including pre-relocation costs and downtime costs incurred during the relocation process, machinery and equipment debugging and repair costs, as well as compensation costs such as disassembly, packaging and transportation of materials, dismissal of employees and liquidated damages caused by suspension of production.

How to obtain reasonable compensation when an enterprise is facing closure and demolition! Business owners who have been demolished must not miss it


4. Incentive expenses incurred based on the demolition policy, including early moving fees, demolition incentive fees, project cooperation awards, etc.

Risks and difficulties faced by enterprises in obtaining demolition compensation

First, the ambiguity of compensation standards means that there is no clear definition of the amount of compensation for enterprise demolition.

Secondly, compensation for intangible effects has no clear legal basis and is difficult to calculate.

Thirdly, the unfairness of land use rights and land property ownership due to historical reasons also hinders compensation.

Legal help that demolition lawyers can provide for enterprise demolition

When faced with demolition, many demolished and tenant enterprises have an attitude of "begging", "waiting", "consuming" and "procrastinating". They believe that the first thing to do is to "seek" a relationship in advance, or to wait and see what the situation is, and then it gets over with a little delay, often missing the statute of limitations or the loss of rights granted by the law.

How to obtain reasonable compensation when an enterprise is facing closure and demolition! Business owners who have been demolished must not miss it


Whether large, medium or small enterprises or commercial projects such as shops, shopping malls, commercial streets, etc. are facing closure and demolition, due to the project responsibility involved, the legal professionalism is strong, many levels are involved, and the legal relationships are complex. It not only requires professional legal skills, but also requires more than 10 years of experience in handling such cases. It is difficult for the company's own legal affairs or legal friends to be professional, and the suggestions given are also poor reference, and the consequences are all borne by the company and business owners themselves. Lawyer Yongqiang has encountered many similar cases in his more than 10 years of handling corporate administrative litigation. Some of them resulted in huge losses due to the time limit for the business owner's hearing and reporting. Sometimes the business owner found a lawyer in time and filed a lawsuit one day before the expiration date to save the company. Some business owners had already realized that there was no hope and looked for a way out with the mentality of giving it a try. After a face-to-face analysis, Lawyer Yongqiang found clues and thus saved the company step by step.

As the saying goes, help in times of need doesn’t last long, but the icing on the cake is the icing on the cake. Business owners’ sixth sense is often very accurate. If the path is right, it will become smoother and smoother, but if it is in the wrong direction, it will be difficult.


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