Company liquidations in Saudi Arabia are effectuated according to the Regulations for Companies and to the different circulars issued by the Ministry of Commerce and Industry in the country. In this article, our company formation consultants in Saudi Arabia analyze different aspects related to the company liquidation in this jurisdiction.
Regulations for company liquidation in Saudi Arabia
The Ministry of Commerce and Industry has forwarded a policy that the company liquidation in Saudi Arabia according to the Regulations for Companies is not valid for insolvent companies.
Therefore, under the voluntary liquidation and dissolution procedure set in the Regulations for Companies, there is only a little judicial supervision of this procedure.
In a solvent legal entity liquidation, the shareholders, in a general meeting, name the liquidator. The liquidator has to pay the debts of the entity which have resulted from the liquidation first and then pay the other debts of the legal entity.
Any extra has to be distributed among the shareholders, according to the articles of association or the bylaws of the entity. Our company registration advisors in Saudi Arabia can provide further details on this matter. We can also advise you on how to open a company in Saudi Arabia.
The Saudi immigration rules imply that all foreign workers possess the appropriate visas and work permits. For companies that are just entering the Saudi Arabian market, obtaining work permits for employees who need sponsorship can be challenging. Feel free to consult with us on how to bring foreign workforce here.
When first coming to Saudi Arabia, you will have the visa you can use until the residence permit is issued. The Saudi Iqama is usually processed by the authorities 3 months after your arrival in the country. So, if you need guidance in obtaining your documents, please contact our immigration specialists.
Procedures for liquidation of legal entities in Saudi Arabia
Partnerships and limited partnership liability companies in Saudi Arabia have to effectuate the following procedure for their liquidation:
• File a request to liquidate the business, attached to the partners’ decision and signed by the partners;
• File an updated financial report, accredited by a chartered accountant, setting the liquidation date;
• Announce the company liquidation in Saudi Arabia and name a liquidator;
• Present the final account for the business liquidation, accredited by the partners and authorized by a chartered accountant;
• Present a clearance certificate from the Income and Zakat Department, which allows the cancellation of the commercial registration of the business;
• Other documents: our Saudi Arabia company formation agents can offer more information on what these other documents consist of.
If you require more details about a business liquidation in Saudi Arabia, or for help in setting up a company in Saudi Arabia, please contact us.