How to Liquidate a Company in Qatar?

Posted by Petter on May 28th, 2021

ou may decide to start a company in Qatar and then shut it down a couple of years later. Organizations shut down for all kinds of reasons and when they choose to close their doors it simply means they have either completed the project they chose to do, they want to move to another location, or follow opportunities elsewhere. But just as there is a certain procedure to start a business in Qatar there is one you need to follow to end it. 

When it comes to the liquidation of your brand, you need to follow certain laws and procedures according to your circumstance. Here is a guide to give you an idea of how to go through with it. 

How to proceed with Liquidation?

No matter what reason you have for liquidation, your process needs to be carried out according to Qatari law, much like your company set up in Qatar. If your business is going through liquidation you need to ensure that all articles of commercial registration and association are kept valid throughout the process. 

The shareholders' resolution has to be done in the situation of liquidation or a dissolution of the company and you need to appoint a liquidator who holds a valid Qatar ID and who can help you to finalize all the procedures required. After this documentation has been done, prepared, signed, and stamped you will send a request to the ministry to commerce and industry to put the commercial registration under liquidation. 

In an event like this, an advertisement will be published in the local newspapers stating your company’s liquidation and how the investors can claim their dues.

Just like certain formalities you have to follow during company formation in Qatar, in liquidation, all employees will receive their payments due and then have their residence permits canceled and must leave Qatar within the month or transfer their Qatari sponsorship to another country if the company is moving to another location and has obtained immigration clearance for closure. 

Finally, the bank account of the company will be closed and the audit team will go ahead and finalize the entire account sheet and then proceed to submit it to the tax department. Post this the organization will receive its no-objection certificate to proceed with dissolution.