MOCI : Expired registrations weakens national economy and increases hidden trade
Khalid bin Hamad Al Saa’idi, head of the contracts and approvals department in the Ministry of Commerce and Industry, said that the liquidation of companies are regulated by the Companies Law under the Royal Decree No. 4/74, and its articles 14 to 27. The ministry has given a proposal for non-active commercial registrations with a number of objectives to be exempted from late fines. This is in coordination with the competent authorities. In this context the Ministry of Commerce and Industry has announced that from the beginning of December 2017, the commercial registrations which are inactive since a long period of time due to non-availability of their commercial activities for which they were established would be exempted from the fines.
He said that some of these registrations have have stray expatriate labour which is an additional financial burden on these registrations. We should know that the Sultanate has implemented electronic linking system with the civil identity cards. Therefore, this may cause financial or legal consequences for the owners of these registrations.
Al Saa’idi further said: “The reasons for liquidation of the company according to the practiced rules are that the company's specified term of period has come, purpose for which the company was established is achieved, transfer of all shares to one partner, bankruptcy of the company or, the partners’ agreement or there is an order of the competent court to liquidate the company. "
He explained that there were certain conditions that must be met when submitting the liquidation requests. They include submitting a meeting minutes or partners agreement to dissolve or liquidate the company. The name and terms of the liquidator should be included in the form of the announcement of commencement of liquidation. The liquidator's approval, if he is not a partner, payment of RO 100 to in two parts, first RO 50 when the process of the beginning of liquidation is declared, RO 40 in case the commercial registration is completed when the application is fulfilled. The application must be submitted through the windows of the Ministry of Commerce and Industry, including Sanad offices, law offices, accounting offices or through self-service and www.investeasy.gov.om.
He pointed out that after submitting the application and fulfilling all the conditions, the request would be referred to the employees of the Ministry of Commerce and Industry. The relevant employee will check the request and then it would send it to the Ministry of Legal Affairs to publish the declaration of commencement of liquidation on the official gazette. Then since the publication of the declaration, six months would be counted under the provisions of the article 27 of the Companies Law. He said out that the responsibility of the liquidator begins from the date of his appointment under the record to fulfill all the obligations and dissolve all the current assets of the establishment.
After the liquidator will complete his work within six months, he will submit the liquidation report, approval of the partners, advertisement of the completion of the liquidation, payment of RO 50 to the Ministry of Legal Affairs to publish the advertisement of the completion of the liquidation process. Then the company would be declared completely non-existent. He stressed that it was necessary to submit requests for liquidation to the Ministry of Legal Affairs as it is in its jurisdiction to cancel a legal entity.
Khalid Al Saa’idi said that individuals’ establishments would be cancelled after they would fill the specified form after approval from the Ministry of Manpower, Royal Oman Police and Public Authority for Social Securities. If these establishments have any obligations, they have to fulfill them so that the Ministry of Commerce and Industry can cancel them. He said that the work of cancellation of individual’s establishment is being completed in record time and for this a swift mechanism is at place.