De-Registration & Liquidations
When a company needs to be liquidated and de-registered for whatever reason, Afreno can help with the entire process for all of the companies registered in the Ministry of Economy & Commerce. The same is true for the companies listed with the Qatar Financial Centre. We can help make sure that the company is properly liquidated and dissolved in accordance with the requirements of the licensing jurisdiction.
All of the necessary procedures must be conducted in a formal manner, and must completely adhere to the strict rules wherever the jurisdiction is. For dissolving a company, we can help appoint a liquidator and assist you with filing paperwork with the necessary licensing authorities and bodies of government, in order to satisfy the requirements as mandated by the law. Whether you need assistance with outstanding creditors or informing the public about the dissolution, we can provide our expert assistance every step of the way.
Frequently Asked Questions
What are the two kinds of liquidations?
Voluntary liquidation means the shareholders make the decision to cease operations, while compulsory liquidation means that the court makes the decision to have the company dissolved.
What are the reasons for voluntary liquidation?
The company may no longer be able to make a profitable business, or it may have already achieved the goal for which it was created.
What are the reasons for compulsory liquidation?
The company may have neglected to fulfil obligations, or it may be due to non-compliance of certain laws.
What are the roles of the liquidator?
Among others, the liquidator must cancel the company record with the labour department, as well as process the tax clearance with the Ministry of Finance among others.
What are the other required documents for dissolution?
Under Law No 5 of 2002 (the “Commercial Companies Law”), it is required to submit a letter in Arabic to explain the dissolution.
When does the company become officially liquidated?
The company is officially dissolved as soon as the General Assembly Resolution is lodged with the Commercial Registry.
What does it mean when the company becomes officially liquidated?
All debts are now due. The liquidator must complete the whole liquidation process and present a final statement of accounts to all shareholders.
When can a company be de-registered?
After the liquidation of a company, it can be de-registered upon submission of an application to the Ministry of Commerce and Industry for approval.
Is it different when processing liquidations in the QFC?
With companies incorporated in the Qatar Financial Centre (QFC), provisions are under the QFC Insolvency Regulations (Insolvency Regulations) and must be adhered to accordingly.
What can Afreno help me with?
We can not only provide you with trusted and professional assistance among our team of experts, but we can also ensure that the whole process does not cause you any unnecessary stress.
Paperwork Preparation and Filings
In Qatar, liquidation means the process wherein a company is ended or dissolved. The properties of the company and the assets owned are then redistributed during the winding-up or the dissolution. There are two types of liquidations of companies, namely, voluntary liquidation and involuntary or compulsory liquidation.
Voluntary liquidation can also be referred to as shareholders’ liquidation, because the shareholders are the ones who come to a formal decision to cease the company’s operations. This decision can come from a variety of factors, the most significant and most common of which is the inability to continue with making a profit out of the business. Compulsory liquidation means that the court has decided to order the company to cease its operations. Whatever the reason may be for the dissolution, Afreno can help provide expert assistance with all the paperwork and filings for full compliance with the regulations mandated by the law.
Ministry of Commerce and Industry De-Registration (MOCI)
According to the Commercial Company Law No. 11 of 2015 in Qatar, there are many required documents and procedures that companies need to comply with for complete liquidation and de-registration. Among these are various requirements that need to be submitted to the Ministry of Commerce and Industry (MOCI). Afreno can provide timely and professional assistance with sending the notice regarding the appointment of the liquidator the Registrar, as well as the cessation of the power of the Board once approved by the Ministry of Economy and Commerce. The liquidation will also be announced in at least two local newspapers as mandated by the law.
The assets of the company must be collected, and the creditors must all be paid accordingly. The end of services must also be paid to the company’s employees accordingly as based on their employment contracts. Other services include cancelling the computer card with the immigration department.
Qatar Financial Centre De-Registration
The provisions for winding up also have specific regulations when it comes to companies incorporated in the Qatar Financial Centre (QFC) under the QFC Insolvency Regulations (Insolvency Regulations). During a voluntary liquidation, the creditors’ meeting must be fully convened no later than 21 days after the decree to dissolve the company. At least seven days before the creditors’ meeting is to be held, the notice of the meeting must be presented to the QFC Authority. The meeting must appoint a liquidator officially, and there may also be a committee that will be responsible for overseeing the dissolution by the liquidator.
There are plenty of other nuances when it comes to the liquidation of the company as well as the proper de-registration that follows soon after, and with Afreno as your trusted and professional corporate support partner, you can rest assured that all affairs will be in order no matter what the situation.