Closing a company in Saudi Arabia: the steps and the clearances

Close it properly, or it stays open

A company that simply stops trading is not closed. Its registrations stay active, fees and penalties keep accruing, and its owners and managers can face restrictions later. Closing properly means settling every file, in the right order.

1. Decide and appoint

• A partners’ or shareholders’ resolution to dissolve the company and enter liquidation.
• Appointment of a liquidator, and registration of the liquidation with the Ministry of Commerce.
• Notice to creditors, as the Companies Law requires.

2. Settle the people

• Final salaries and end-of-service benefits under the Labor Law.
• Final exit visas for expatriate employees, or the transfer of their services to new employers.
• Closing the establishment file on Qiwa and the registration with GOSI.

3. Settle the money

• Collecting receivables and paying suppliers and other creditors.
• Final VAT and zakat or income tax returns, VAT deregistration, and the clearance certificate from ZATCA.
• Closing the company’s bank accounts.

4. Close the registrations

• The liquidator’s final accounts and report, approved by the partners.
• Cancellation of the Commercial Registration.
• Cancellation of Chamber of Commerce membership, municipal and sector licences.
• For foreign-owned companies, cancellation of the MISA investment licence.

How we run it

We plan the closure, run each step with the relevant authority, coordinate with a licensed liquidator where one is required, and keep a checklist until the final cancellation is confirmed.