Company liquidation in Qatar is a long process — it might be compulsory or voluntary — and involves investigating past actions, selling assets, and distributing them equitably amongst creditors and, thereafter, shareholders. Immediately after a company is liquidated, it must cease doing business and employing people; its business license is revoked and its name removed from the Trade Registry.
1. Appointing a liquidator. A liquidator is appointed either by the company shareholders passing a resolution (voluntary liquidation) or by the Court making an order (compulsory liquidation).
2. Notifying the competent authority and registrar. The managers, chairman and liquidator enter the dissolution in the Commercial Register with the competent authority along with relevant documents.
3. Advertisement in the newspapers. The dissolution must be published in two daily local newspapers, one of which is issued in Qatar. The dissolution is not effective against third parties until the date of registration.
4. Obtaining a certificate of deregistration. After 45 days from the date of advertisement, if no objections are received from third parties, the liquidator requests cancellation of the business license and the registrar issues a certificate of de-registration.
Company closures generally fall into three types: Summary Winding Up (no liabilities, or able to discharge them within 6 months), Creditors Winding Up (following a resolution and a creditors' meeting), and Court Winding Up under Qatar Commercial Transactions Law. If you are planning to close a business, get in touch before notifying any government entity — early advice avoids accumulated fines and penalties.
