Bankruptcy & Liquidation
liquidation in saudi arabia
Many foreign companies operate their business by having JV, subsidiary or branch in Saudi Arabia. The directors and shareholders seek to avoid personal liability for the company’s debts and to protect their personal assets and reputation if the business fails in Saudi Arabia.
The company owns the assets of the business and will be liable for any debts incurred. But a shareholder, will not be held liable personally for the company’s debts and other financial liabilities.
The Company’s reputation will be affected if proper settlements are not made to creditors, wages of laborers and vendors. There are certain conditions in which the Directors or Shareholders will be compelled to issue a personal guarantee.
Moreover, few foreign companies have left without liquidating and canceling the registration and license through legal procedures.
This has led to severe issues in later stages allowing the creditors including government agencies to take legal proceedings inside Saudi Arabia or in domicile jurisdiction.
We help such debt facing companies to resolve their critical debt problems by way of liquidation as per the law and settle the creditors through appropriate legal procedures and safeguard the company’s reputation and secure the shareholders or any individuals from any personal liabilities.
We will make sure that the company is out of all liability to local authorities in terms of any penalties or compliance notices that might be pending on the company.
We can clearly say that the economic crises in many countries led to the closing of lots of facilities. Because of this, the Saudi government has formed bankruptcy system which aims entirely to organize the responsibilities and debts of debtors to resume their activities.
The bankruptcy system has defined seven basic procedures that preserve the rights of creditors in terms of fair distribution, regular sale, etc. The bankruptcy procedures aim to regulate the financial position of the debtors and contribute to the support and development of the economy while ensuring that the rights of creditors are observed securely and fairly – liquidation lawyer in saudi arabia can help you in:
insolvency law saudi arabia
The firm is distinguished from others, as it has experience in these services- bankruptcy law of saudi arabia – , as it has specialists and skilled in studying the conditions of companies and giving correct advice in liquidation process in saudi arabia , preparing the necessary documents in , submitting applications, and finalizing them as soon as possible, and this is what made many foreign companies with local branches lean on our firm in liquidation of commercial companies in saudi arabia to finish its bankruptcy proceedings.
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