Company Liquidation Services
Company liquidation in Dubai is a process by which you formally shut down the operations of your company. It consists of lengthy paperwork that must be submitted to government entities and the assets, property, and funds of the firm tend to be distributed among the creditors and shareholders. Such situations usually become inevitable once the company faces a severe financial crisis and can no longer settle debts.
With the stress of having to shut the doors of your business, having to manage the above can feel very exhausting. Business Link’s consultants can help ease the process by taking responsibility for all the documentation as well as going around to seek approvals and settle cancellations.
Types of Liquidation
- Voluntary Liquidation
In this type, the shareholders of the company 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, a 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.
How does the process of Company Liquidation in Dubai take place?
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 and so on, that confirms the decision of liquidation, along with the credentials of the liquidator.
- 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 all partners, owners, and creditors’ passports 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.
- For the purpose of the liquidation, a liquidator is appointed to oversee 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.
- The company is then required to submit the resolution.
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.
Documents required to liquify your business
- Obtain clearance letters from the Immigration Department, Labor Department, Federal Customs Authority, and RTA
- Cancel all work permits and visas of all employees and partners.
- Obtain clearance letters from utility companies (water, electricity, and telecoms), as well as from the property owner.
- Obtain 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 will be submitted to the relevant authority and cancellation fees
- Upon review, the authority will then issue a ‘License Cancellation Certificate’
How can Business Link assist in closing your business?
We house a team of qualified and experienced 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 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. Get in touch and let us do the rest.
