HomeDe-Registration/ Company Liquidation

Liquidating a company in Saudi Arabia goes beyond just shutting down operations. It involves carefully managing finances, following legal procedures, and mobilizing resources. Each step is strategically taken to settle debts, comply with regulations, and redistribute assets. This organized process not only brings closure to stakeholders but also boosts economic efficiency, paving the way for new business opportunities. It signifies a purposeful shift, creating fresh possibilities in a business environment marked by investor confidence and market strength.

De-Registration/ Company Liquidation

Dissolving a company involves the intricate process of winding down its operations and closing all business activities. This significant event transpires when a company finds itself in financial distress, unable to meet its obligations due to sustained losses. Company liquidation becomes imperative as the organization grapples with insurmountable debt, necessitating the cessation of its existence.

Types of company liquidation in KSA
  • Voluntary liquidation: Voluntary liquidation, a strategic business decision, can arise from financial losses, owner’s demise, goal achievement, or goal obsolescence. Management faces operational, legal, and financial challenges, requiring precise timing and comprehensive consideration. It demands a strategic approach to navigate this intricate phase effectively.
  • Mandatory liquidation:  In the event of regulatory breaches, fraud, or insolvency rendering a company unable to meet financial obligations, government intervention may necessitate immediate closure. Court-ordered mandatory liquidation, facilitated by an authorized firm, entails converting assets into funds to reimburse creditors, ensuring a resolution to financial obligations.
Company liquidation process in KSA
  • Board of Directors Meeting: Convene a Board of Directors meeting to discuss and approve the decision for company liquidation.
  • Submission of Application for Liquidation: Prepare and submit the application for liquidation to the relevant government authorities, such as the Saudi Arabian Ministry of Commerce and Investment.
  • Publication of the Dissolution Decision: Publish a notice regarding the company’s dissolution decision in an approved local newspaper and on the official government gazette.
  • Liquidator Acceptance: Appoint a qualified liquidator who will oversee the liquidation process. The appointed liquidator must formally accept the responsibility.
  • Notice Period: Adhere to the stipulated notice period as per Saudi Arabian regulations, during which creditors and stakeholders are informed of the company’s liquidation.
  • Bank Account Closure: Close the company’s bank accounts and settle any outstanding financial matters.
  • Final Tax Submission & Tax Deregistration: Ensure the submission of the final tax return to the Saudi Arabian tax authorities and initiate the process of tax deregistration.
  • Visa Cancellation & Settlement of Dues: Cancel the visas of expatriate employees, if applicable, and settle any outstanding dues with employees, suppliers, and other stakeholders.
  • Liquidator Audit Report: The appointed liquidator conducts a thorough audit of the company’s assets and liabilities, preparing a detailed report for submission to the relevant authorities.
  • Liquidation Certificate: Obtain the official liquidation certificate, confirming the completion of the liquidation process.
For smooth closure of your business in KSA: Helpline Group is here to guide you

Helpline Group is your trusted business consultant in Saudi Arabia, offering expert guidance and support for seamless business closure in KSA. With a global presence, including 10 international branches and a team of 300+ industry experts, we ensure comprehensive assistance for corporates and individuals navigating the complexities of closing businesses.