Company Liquidation
The process of bringing a company to an end. This could be by selling off its assets, settling its debts, and distributing any remaining assets to its shareholders.
Typically initiated when a company is facing financial difficulties and is unable to pay its debts, or when its owners or shareholders decide to close the business.
Company Liquidation
The process of bringing a company to an end. This could be by selling off its assets, settling its debts, and distributing any remaining assets to its shareholders.
Typically initiated when a company is facing financial difficulties and is unable to pay its debts, or when its owners or shareholders decide to close the business.
Types of Liquidation
Voluntary Liquidation
Here the shareholders willingly choose to put all operations to an end due to the lack of money to pay off their debts to creditors.
Voluntary liquidations allow for priority to be given to creditors.
Compulsory Liquidation
In this type, the court order is issued which initiates the company liquidation process. All assets within the liquidated company are shared among the contributors, creditors, and shareholders, depending on the priority of claims.
The Process
While each jurisdiction and company type have its own specifics in terms of company liquidation, the overview of the process is as follows:
The company must provide all necessary documents such as the original registration certificate, that confirm the decision of liquidation, along with the credentials of the liquidator.
Documents
- Original Registration Certificate
- Copy of the Establishment’s Trade License
- Copy of the Establishment’s Memorandum of Association
- Power of Attorney (if any)
- Copies of Partners, Owners, and Creditors’ Passport and Emirates ID
Things to note
- Preparation of shareholder’s resolution of liquidation. The documents, by law, are required to be attested by a Notary Public registered within the UAE.
- A liquidator oversees the financial situation of the company, and cannot be associated with the company in any way. The liquidator is required to submit an official acceptance letter.
- A waiting period of 45 days is required to see whether any client files financial claims against the company.
What we can do for you?
- Clearance letters from the Immigration Department, Labor Department, Federal Customs Authority, and RTA
- Cancel all work permits and visas of all employees and partners
- Clearance letters from utility companies (water, electricity, and telecoms), as well as from the property owner
- Bank account closure letter
- Apply for VAT de-registration and obtain a VAT clearance letter from FTA
- After the 45-day period is over, file a liquidation report
- Submission to the relevant authority and pay cancellation fees
Our professionals deal with all the authorities on your behalf, while also guiding you on what can be done better.
contact us
Company Liquidation Services
Company liquidation in Dubai refers to the process of bringing a company to an end. This could be by selling off its assets, settling its debts, and distributing any remaining assets to its shareholders.
This process is typically initiated when a company is facing financial difficulties and is unable to pay its debts, or when its owners or shareholders decide to close the business.
In Dubai, the liquidation process is governed by the Commercial Companies Law of the UAE and the Dubai International Financial Centre Companies Regulations.
It’s important to note that the liquidation process in Dubai can be complex and time-consuming, and it is recommended to seek the advice of a professional corporate advisor.
Bringing a closure to your business setup in Dubai can be out-of-sorts. But, with Business Link it doesn’t have to be!
Types of Liquidation
- Voluntary Liquidation
Here the shareholders willingly choose to put all operations to an end due to the lack of money to pay off their debts to creditors.
Voluntary liquidations allow for priority to be given to creditors.
- Compulsory Liquidation
In this type, the court order is issued which initiates the company liquidation process. All assets within the liquidated company are shared among the contributors, creditors, and shareholders, depending on the priority of claims.
The Process:
Having to come to the decision to liquidate your company is never an easy one. Usually, when such decisions are made, the board of the company in question holds a meeting to discuss the closing process, how funds will be distributed and how creditors will be compensated.
While each jurisdiction and company type have its own specifics in terms of company liquidation, the overview of the process is as follows:
- The company must provide all necessary documents such as the original registration certificate, that confirm the decision of liquidation, along with the credentials of the liquidator. Documents include:
- Original Registration Certificate
- Copy of the Establishment’s Trade License
- Copy of the Establishment’s Memorandum of Association
- Power of Attorney (if any)
- Copies of Partners, Owners, and Creditors’ Passport and Emirates ID
- Preparation of shareholder’s resolution of liquidation. The documents, by law, are required to be attested by a Notary Public registered within the UAE
- A liquidator oversees the financial situation of the company, who cannot be associated with the company in any way. The liquidator is required to submit an official acceptance letter
- Submit the resolution
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After the issuance of an initial liquidation certificate, the company is required to publish an English and Arabic ad in newspapers announcing the liquidation.
A waiting period of 45-days is required to see whether any client files financial claims against the company.
Required Documents:
How Business Link Can Assist in Company Liquidation?
- Clearance letters from the Immigration Department, Labor Department, Federal Customs Authority, and RTA
- Cancel all work permits and visas of all employees and partners
- Clearance letters from utility companies (water, electricity, and telecoms), as well as from the property owner
- Bank account closure letter
- Apply for VAT de-registration and obtain a VAT clearance letter from FTA
- After the 45-day period is over, the liquidator can file a liquidation report
- The report, along with all necessary documents should be submitted to the relevant authority and pay cancellation fees
- Upon review, the authority will then issue a ‘License Cancellation Certificate’
We house a team of experienced business consultants who undertake the task of closing your business. We can assist you by offering practical advice regarding company liquidation, that can help you dodge legal liabilities and unforeseen financial losses during your liquidation process.
Our professionals deal with all the authorities on your behalf, while also guiding you on what can be done better. Company Liquidation in Dubai can be confusing, which is why you need company liquidation consultants you can trust who can help in simplifying stringent regulations.