The liquidation of a company is a process in which a company, fully or partially (part of it), ceases to exist. The assets and properties of the company are redistributed. The other terms used for liquidation of a company in Qatar include dissolution, winding-up, and insolvency. Dissolution is the last stage in the process of liquidation.
Types of Liquidation Processes Followed in Qatar
Let us have a look at the two types of liquidation processes followed.
A compulsory liquidation occurs when a company is unable to meet its obligations due to non-fulfillment or neglect. Another industry term that refers to compulsory liquidation is creditors’ liquidation.
Liquidation by Agreement
Liquidation by agreement, as the name suggests, is voluntary liquidation. The other name for this type of insolvency is shareholders’ liquidation. This type of liquidation occurs when the shareholders of a company mutually decide that the organization will no longer operate because of reasons like not earning any profits, achievement of the deliverables originally set, or accomplishing the purpose for which it was originally set up.
Here is how BookkeepingQatar.com can help with the entire process of liquidating your company in Qatar.
- Collection of the assets to pay creditors including ceasing employees’ contracts and full payment for the services they rendered.
- Announcement of the liquidation of the company in at least two of the newspapers as the law requires.
- To terminate the power of the Board at MEC (Ministry of Economy and Commerce)
- To send the notice of liquidators’ appointment to the registrar, usually the company control section.
- To cancel the computer card at the Ministry of Interior (Immigration Department) and also cancellation of company record at the Ministry of Labor.
- To oversee the processing of tax clearance within the Ministry of Finance and deletion of the company enrollment.
Documents Required for Company Liquidation in Qatar
- The establishment card, original, and copy
- Trade License, original, and copy
- The commercial Registration form that highlights the request for the cancellation of the registration
- A valid commercial registration of the business
- A letter issued by the liquidator that confirms responsibility for the entire liquidation process
- A letter issued by the liquidator that confirms the company’s obligations are cleared the process of liquidation is carried out as per the applicable commercial companies’ law and the liabilities of the company have also been cleared
- Originals as well as the copies of the two newsletters in which printed the announcement
- To resolve the shareholders to confirm that they are accepting the outcome for the liquidation and confirmation of dues owed to them are cleared
- Provide the copy of the final audit that is signed and stamped by the appointed Auditing company and the liquidator. Provide a copy of the NOC for the tax authorities.
- To send the notice for the liquidator’s appointment to the Registrar (the company control section)
- To cease the Board’s power once approval given by the Ministry of Economy and Commerce
- The announcement of the liquidation in two local newspapers as per law
BookkeepingQatar.com has a professional team of liquidators in Doha QFC that can help with all types of company liquidations in Qatar. Get in touch with BookkeepingQatar.com at info[at]bookkeepingqatar.com or give us a call at +974 5090 5844