Company Liquidation Under Iraqi Law
Company liquidation in Iraq is governed by Companies Law No. 21 of 1997 (as amended) and involves the legal process of winding up a company, settling debts, liquidating assets, and removing the entity from the corporate register. Liquidation ends with the dissolution of the company, closure of tax and social security files, and issuance of a final strike-off decision.
Legal Procedures for Liquidation
- Shareholder Resolution approving liquidation and appointing a liquidator
- Notification to the Registrar of Companies
- Liquidator’s inventory and valuation of assets
- Settlement of debts and creditor claims
- Tax Authority settlement and clearance
- Social Security settlement for employees
- Distribution of remaining funds to shareholders
- Submission of final liquidation report
- Company strike-off and dissolution
Regulatory and Compliance Requirements
- Tax clearance is obtained from the General Commission for Taxes
- Social Security clearance is issued confirming employee settlements
- Customs clearances are completed for import-heavy operations (e.g., oil & gas, industrial)
- Sectoral approvals are obtained for regulated companies (e.g., banking, telecom, insurance)
Reasons for Liquidation
- Market exit or restructuring
- Contract completion with no future operations
- Regulatory changes
- Group restructuring or consolidation
- Inability to meet financial obligations (leading to compulsory liquidation)
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.