De-Registration and Liquidation of a Company: The Hows and Whys
Sometimes, when a business owner no longer wishes to continue with a company’s operations for whatever reason, the company may be liquidated voluntarily or involuntarily. Liquidation in Qatar means that a company’s assets and properties are redistributed. This can also be called winding-up or dissolution, and must first be done before de-registering a company.
A voluntary liquidation can also be referred to as shareholders’ liquidation. Oftentimes, when a company no longer proves to be profitable, or if it has already accomplished delivery of its projects or it has completely fulfilled its purpose, a voluntary liquidation may be done.
Compulsory liquidation refers to the dissolution of a company as decided by the court. This can be due to neglect, non-compliance with certain regulations, or non-fulfilment of obligations. This can also be called creditors’ liquidation.
In the case of the liquidation of a company, the notice of the liquidator’s appointment must be duly sent to the Registrar. The Board’s power shall cease upon approval from the Ministry of Economy and Commerce, and the liquidation must be announced in two local newspapers as mandated by law. All assets must be collected, and all creditors must be paid. This includes paying employees their end of services according to their employment contracts. Cancellation of the computer card with the immigration department, the company record with the labour department, and tax clearance with the Ministry of Finance must all be accomplished properly as well.
Under Law No 5 of 2002 (the “Commercial Companies Law”), a letter in Arabic must be produced, which fully explains the situation of the dissolution. As soon as the General Assembly Resolution is lodged with the Commercial Registry, then the company officially becomes liquidated. This means that all debts are now due, and the liquidator must carry out all of the necessary steps needed to complete the whole process. Upon completion, the liquidator must present a final statement of accounts to all the shareholders, which will be subject to approval by the General Assembly.
Afterward, the company must now be de-registered. In order to remove the company from the commercial registry, an application to the Ministry of Commerce and Industry must be submitted for approval. You will need a copy of your ID as well as proof of acknowledgement from the partners and the payment of the appropriate fees.
There are plenty of nuances that the whole liquidation process entails, and completing everything can even take more than a whole year. To help you facilitate procedures and to make sure that all requirements are duly met completely and accurately, it’s always an efficient idea to have a trusted business consultancy partner to help you navigate through the intricacies of a company’s liquidation.
Afreno is a Business Consultancy that draws on its long presence, over 10 years in fact, in the field of forming companies, while capitalizing on its impressive know-how at both local and international levels. This endeavor also extends to developing local partnerships and offering excellent opportunities in real estate.
Unlike any other Business Consultancy company in the State of Qatar, Afreno includes under its umbrella three closely-linked comprehensive services: business advice, legal negotiation and real estate possibilities. This means that any project, however complex, can be dealt with in all its aspects. Added to this is our wide range of reliable clients and trusted business contacts, plus our up to the minute awareness of what is going on in the markets, whether GCC or local. Your business venture will be backed by our in-depth knowledge, the valuable connections we have built over time, and our solid reputation, ensuring that you succeed quickly, whatever enterprise you are involved in. All this will be achieved with the minimum of stress; unsurprisingly Afreno has become the point of reference for anyone wishing to incorporate or grow their business in the local market.