Company liquidation in Oman is the process of selling the assets of a company that is in financial difficulty in order to be able to pay its creditors. Voluntary liquidation, although undesirable, is unavoidable in some cases that may involve economic or commercial reasons.
When investors are faced with the decision to close a company in Oman, our local corporate and business lawyers and specialists in company formation in Oman can also assist with the winding up the legal entity.
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Voluntary company liquidation in Oman
Voluntary company liquidation takes place when the company has financial difficulties, or when this step is needed from a commercial perspective. Some of the reasons that can make it necessary to close a company in Oman include the following:
- the company can no longer carry out its object of activity/it has fulfilled its object of activity;
- ineffective financial and operational management;
- an accumulation of debts towards various creditors;
- excessive expenditure during the course of business activities that leads to financial loss;
- other reasons that may include the completion of the services offered by the company (such as in the case of branches in Oman that have a contract with the Government).
Although investors do not consider these scenarios when setting up a company in Oman, if the termination of the business becomes a necessity, the owners will need to request specialized assistance, such as the services provided by our local team.
Liquidation is the first step for closing or winding up a company in Oman. Our team will assist you throughout the needed steps which include appointing a liquidator to handle the process.
The liquidator will be the one to gather the company’s assets, make any due payments to creditors and distribute any remaining assets to the company’s shareholders before its closure.
Some examples of fees that can be taken into account when starting the liquidation process include the following:
- no more than 500 OMR court fees for filing liquidation with court;
- minimum 1,000 OMR for court appointed expert to review the company’s accounts;
- our legal fees may vary depending on the company.
Please keep in mind that these fees can be subject to change and are calculated at the end of the liquidation or cancellation application. Our lawyers in Oman can give you more details about the requirements.
Assistance for winding up a company in Oman
The decision to terminate the activities of the company is an important one. Our lawyers in Oman offer their corporate law expertise to help investors navigate this often-undesirable step.
If the company is facing financial difficulties, we can advise on the most suitable practice, and perhaps a restructuring of the company, in an attempt to avoid liquidation.
When the decision to commence company liquidation in Oman can no longer be avoided, we will provide the needed legal representation through the closure and, if needed, the bankruptcy proceedings.
When the liquidation is not voluntary, but ordered by court, our lawyers will provide the needed legal representation. In this situation, the petition for bankruptcy can be brought to court by the creditors or by the debtor himself and the court is the one to issue the judgment for appointing a liquidator.
If you are interested in matters other than company formation or closure in the Sultanate, you can also reach out to us for information on how to move to Oman, provided by our experienced immigration lawyers in Oman.
Contact our lawyers in Oman for more information about company liquidation. Our lawyers can also help you company formation in Oman.