Business Liquidation

The Company liquidation is a long process; it might be compulsory or voluntary.

Immediately after planning to close down your business, the government entities should be notified of the same. This is to avoid any accumulated fines and penalties. It is also advisable to contact a Firm that offers company liquidation services in Qatar.

Company Liquidation is the process of concluding its affairs, which normally involves the investigation of past actions, sale of assets, the equitable distribution of the assets of a company amongst its creditors, and thereafter to its shareholders.

Immediately after a company is liquidated it is required to cease doing business and employing people. Upon liquidation, a company’s business license is revoked, its name is removed from the Trade Registry and the entity is considered to have ceased to exist.

What are the LLC company liquidation processes?

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).

3. Advertisement in the newspapers

The dissolution should be published in two daily local newspapers; one of them should be issued in Qatar. The dissolution of the company shall not be effective against third parties until the date of such registration.

2. Notification of the Competent Authority and the Registrar of the Dissolution

The Managers of the company, the Chairman, and the Liquidator, as applicable, shall enter the dissolution of the Commercial Register with the competent authority with relevant documents.

4. Obtaining Certificate of deregistration

After 45 days from the date of advertisement, if no objections were received from any third parties, Therefore, the liquidator will ask for the cancellation of the business license from the competent authority. The registrar of the company will issue a certificate of de-registration.

What are the different types of company closure?

The winding-up of the company may either be:

Summary Winding Up: A summary winding up applies in cases where a company either has no liabilities or is able to discharge its liabilities within 6 months and commences with a statement of solvency.

Creditors Winding Up: A Creditors Winding Up commences when the company passes a resolution and is followed by a meeting with the company’s creditors.

Court Winding Up: Court winding up under Qatar Commercial Transactions Law (Bankruptcy and Preventive Composition) and other applicable legislation