The Process of Liquidating a Company in Qatar
What does it mean to liquidate a company?
If a business needs to officially close for any reason, it is important that the legal liquidation process is followed accordingly. Liquidating a company is the official process which ends a business, during this process, the business’ assets are liquidated and divided amongst shareholders after all debts are settled.
What is the liquidation process in Qatar?
In accordance with Qatari law, it is mandatory for the liquidation process to be carried out regardless of the reason why the company is closing. During this process, the Articles of Association must be kept valid and the Commercial registration active.
- Step One: A liquidator will need to be appointed and the agreement in a Shareholders resolution relating to liquidation and dissolution will be activated
- Step Two: Once the initial process has been completed, a request for liquidation will be applied for to the Ministry of Commerce and Industry so the process can legally commence
- Step Three: An advert will need to be placed in an Arabic local newspaper mentioning that the company is under liquidation and any creditors with dues owed to them must come forward
- Step Four: During this time, all employees under sponsorship of the company must receive all pending salary amounts and their end-of-service benefits. The employee’s residence permits will be cancelled during the time of liquidation and they must exit the country after 30 days or transfer to new sponsorship within this time. It is imperative that all employees are off the company sponsorship to obtain clearance from immigration to finalise company closure.
- Step Five: The business bank account will then be officially closed and the legal appointed auditor will prepare the final balance sheet which will need to be submitted to the Tax Authority at the Ministry of Finance in addition to the liquidation request documentation from the Ministry of Commerce
- Step Six: Once the Tax Authority releases an NOC the liquidation process is complete and the company will need to begin the dissolution procedure to officially close the business.
What documents do I need to begin the dissolution procedure?
- Valid Commercial Registration of the business
- A copy of the Commercial Registration form highlighting the request to cancel the registration
- Original and copy of the Trade Licence
- Original and copy of the Establishment Card
- Letter from the liquidator confirming responsibility of the liquidation process
- Letter from the liquidator confirming that the obligations of the company have been cleared and the liquidation process is in line with the Commercial Companies Law and that all liabilities have been cleared
- Originals and copies of the two newspapers in which the announcement was printed
- Resolution of the shareholders confirming that they accept the outcome of the liquidation and confirming that all dues owed to them have been cleared
- Copy of the final audit, signed and stamped by the appointed Auditing company in addition to the liquidator and a copy of the NOC from the Tax Authority
How can Venture Partner Qatar assist with the liquidation of your business?
Venture Partner Qatar can assist with the liquidation process of your company in Qatar to ensure that the company is fully closed in the correct way, for more information, please speak to one of our team members on +974 4478 8765 or email firstname.lastname@example.org