Liquidation & Closing
Do you need surgery? Liquidation & Closing For your company as soon as possible? Professional Quality Company helps you take that step successfully, by completing the liquidation and inventory work and providing you with final reports in a short time, and adhering to the specified deadline for the liquidation work to avoid fines and penalties.
Steps to liquidate companies electronically
Companies need to Liquidation & Closing Through the following steps that are carried out through the Ministry of Commerce website:
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Log in to the Ministry's website
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Select e-services, then perform company liquidation.
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Start the service from the available button.
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You must be logged in to the National Access Platform.
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Select New Request
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Read the instructions and then proceed.
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Save the data and continue.
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Select the company type and then click on Liquidation Decision
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Select Save again and continue working after agreeing to the terms and conditions.
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Download company profile in PDF format
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Save data
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Make sure to obtain a transfer form from the Ministry’s website.
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Submit a Word form with the pledge and papers and documents that confirm your position.
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Continue after saving for the third time
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Send feedback and then submit the request.
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The application is left for study and approval, and here you must pay the invoice and document your application.
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Follow up to issue a new commercial record
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Submit and approve the application
Required documents
It is necessary to prepare the following papers for work on: Liquidation & Closing Successfully and without any error:
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Submit a written and stamped decision from the company confirming the liquidation.
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Fill out the Ministry of Commerce liquidation form.
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Cancellation of investment licenses if the company is affiliated with the Ministry of Investment
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Obtain approval from the Central Bank
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Announcing the liquidation and closure decision according to the required form
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Signing of the advertising decision by the person responsible for it
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Implement a financial statement of the company’s status that is no more than one month old.
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Executing a financial statement for the status of a certificate from the Zakat, Tax and Customs Authority to ensure that there is no impediment to completing the process for the company, provided that it has not been more than a month.
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Financial report on liquidation and closing process
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Company's final account papers
Company liquidation procedures
The process of liquidating companies proceeds according to several steps that lead to the termination of the company’s activity after facing harsh financial conditions. These procedures include:
The company's managers must review the conditions related to liquidation, if any, in its articles of association to work with them.
In the event that the company is dissolved by judicial rulings, the rules must be adhered to. Liquidation & Closing which is approved by the court.
A liquidator or group of liquidators is appointed to assist in the liquidation of the company, either by agreement with the partners or by court order.
In the next step, the liquidator has authority over the company, not its owner or partners, but they can view important papers.
Then the company's accounts must be disclosed without misleading and the financial statements must be made available to enable the liquidation procedures to be carried out successfully.
Disclosure of company-related debts.
Determine the announcement of the company’s liquidation by publishing a decision to that effect, with the liquidator being registered in the commercial register.
The liquidator takes stock of the money and debts and pays the latter first.
Debt repayment goes smoothly if the funds are sufficient and the partners get the rest.
In the event that the repayment funds are insufficient, the remaining assets shall be owned by the creditors according to their share.
Submitting the final report to the liquidator on the company’s special status and terminating the company’s registration in the commercial register.
Legal effects of liquidation of the company
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A lawsuit cannot be filed against the liquidator after 5 years have passed since the company’s name was removed from the commercial register.
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Partners do not receive their capital before the liquidation and closing process is completed in full.
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The liquidator is the legal representative of the company and its headquarters is also a legal domicile.
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Compliance with civil laws if the company is owned by individuals and not institutions
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In the event that institutions and individuals own the company, Law 159 of 1981 must be adhered to.
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If bankruptcy is declared during liquidation, the bankruptcy provisions are applied.
The role of the liquidator in liquidating the company
The liquidator performs a number of tasks during the execution of the process. Liquidation & Closing Including:
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Declare himself as a liquidator and register in the commercial register
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He shall be the first representative of the company before the judicial authorities.
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Converting corporate assets into cash and paying off debts through it
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Auction management and sale of movables
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Conducts a complete inventory within three months of appointment.
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It is responsible for paying debts that have priority over others, such as those resulting from the liquidation process.
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He bears the damage caused to the partners or shareholders and compensates them.
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The liquidator can be one or more persons.
Tax implications of liquidation and closure of companies in the Kingdom
The company’s liquidation must not be carried out without obtaining a certified certificate from the Zakat, Tax and Customs Authority stating that the company has no dues or debts owed by the Authority, and its approval of the liquidation process.
Problems facing companies during liquidation
Companies can face several problems during the liquidation process, including:
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Wrong choice of liquidators resulting in financial damage
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laying off workers and causing them great harm
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Inability to properly assess assets and liabilities
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The liquidation period has expired without being completed.
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Length and multiplicity of procedures
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Non-payment of debts, which forces creditors to resort to the judiciary
What are the reasons for liquidation and closure of companies?
Companies are forced to carry out operations. Liquidation & Closing For many reasons, the most prominent of which are:
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Facing repeated financial difficulties and setbacks that led to huge losses and the cessation of profit-making
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Desire to reshape the institution again
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Liquidation of some branches without the origin
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Accumulation of debts and the need to pay them off due to bankruptcy
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The expiry of the period originally set for the establishment of the company as a temporary company
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There is a conflict between partners that cannot be resolved.
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Judicial decisions requiring the liquidation of the company
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Order from the supervisory authority due to committing violations
How to distribute assets after liquidation of the company
If there are any remaining assets after the liquidation process is completed and debts are paid, they are distributed to the partners based on the share of each of them in accordance with the contract drawn up for the establishment.
في حالة عدم الاتفاق تكون الأصول موزعة بالحصص المتساوية
How are employee rights protected during a company liquidation process?
Workers retain some rights in the event that the company they work for is liquidated, through:
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Obtaining all financial dues during the process of paying the institution's debts
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Obtaining an end-of-service incentive, which is determined based on the end of the working time, the number of years, and the worker’s salary.
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Workers can appeal the rights they have obtained through the Ministry of Human Resources.
Common Mistakes to Avoid When Liquidating a Saudi Company
There are several common mistakes made when completing the process. Liquidation & Closing Which is the case for most liquidation workers, including:
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Not resorting to companies specialized in liquidating companies and institutions, which forces you to deal with many overlapping procedures and implement countless requests
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Not informing creditors of the company’s liquidation decision to ensure their money is safe
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Some people do not adhere to the required procedures and legal decisions, which leads to a defect in the steps and practices, which results in huge losses.
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Choosing the wrong liquidator is not good at managing things.
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Delay in implementing procedures and exposure to fines
Why our company is your ideal partner
Professional Quality Company is considered the best company specialized in liquidation and closing, as attested by its best clients and thanks to its distinction in providing the following:
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The company is committed to all legal liquidation procedures through the Saudi system.
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They have extensive experience in the field of liquidation and closing, reaching years of work.
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Rights and obligations are successfully identified and settled.
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Answering all legal inquiries related to the liquidation process
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Distributing the company's money by legal means
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Submitting the necessary documents to the relevant authorities and representing the company before the courts
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It can help you re-establish a company or change its legal entity.
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Committed to working quickly within the agreed time frame.
Customer reviews
Professional Quality Company clients confirmed that they received the best service during the liquidation process of their companies and their evaluations were as follows:
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Professional Quality Company clients confirmed that they received the best service during the liquidation process of their companies and their evaluations were as follows:
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The liquidation and closing process was completed successfully. I thank you for your efforts and speed in meeting my demands to complete my work at the present time. I would like to mention in particular the work on good management of financial matters and implementing the steps required to complete the liquidation with great precision.
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The service was excellent, and you were a great help to me in the process of closing the company after its liquidation, and all partners became satisfied with the entire process. Thank you for the quick response and responsiveness, and completing the procedures in this short time.
Frequently asked questions:
What is the difference between dissolution of a company and liquidation of a company?
Dissolving companies does not mean ending their practical existence, but rather their assets remain in place and can be used, unlike liquidation, which ends the company’s existence from the ground up, from partnership to actual presence as an institution.
The difference between optional and mandatory liquidation
Voluntary liquidation is a decision made by the employer to end his work in a specific field or to sell and liquidate a specific company, and he is the primary controller of the details and duration of the liquidation. Compulsory liquidation is carried out against the will of the company owner and his partners and is carried out in accordance with legal standards for paying debts or for seizure and declaring bankruptcy, and many other crises.
Penalties for failure to comply with liquidation procedures
The penalty for failure to comply with liquidation procedures shall not exceed 5 million riyals as a fine or five years imprisonment, in the event of misuse of the liquidation process.
Duration of the liquidation process and closing of companies in Saudi Arabia
The process takes Liquidation & Closing
According to Saudi law, the period is three years during which the legal procedures in force are completed, but you cannot obtain a longer period except by a court order, or the period extends to five years in the case of voluntary liquidation.
Creditors' rights during the liquidation of Saudi companies
The creditor can obtain his right to the company’s shares after requesting the judicial authority to sell his share and obtain his financial right through it.
What is the difference between liquidation and bankruptcy?
Business owners whose companies have been liquidated can work in trade again and have the right to request liquidation or the creditor if any, but in the case of bankruptcy, only the debtor has the right to declare bankruptcy.
How do you know if a company has gone into liquidation?
The company's inception in the liquidation process can be calculated from its dissolution by agreement between the founders and partners or by court order due to financial problems.
