Company liquidation in Dubai is an essential exercise the management/ partners undertake to wind up business operations in UAE. There are several reasons for liquidating a business.
Some of the common reasons are as follows:
When a company undergoes the process of liquidation, there are various statutory formalities. These formalities are to be duly met and completed before the liabilities/ debts to creditors get settled. Other obligations towards the employees are fulfilled.
In the United Arab Emirates, when a company, whether an LLC, Free Zone, or sole establishment, is liquidated, the assets are sold-off / auctioned according to the process laid down by the regulatory authorities. Moreover, the proceeds thereof are distributed among the creditors and, if there is any surplus, among the company shareholders.
Liquidating a company in the UAE is process-oriented and time-consuming. It is not about closing down the business operations at a day's notice to the employees. There are many things to consider, such as informing the government authorities, the company's bankers, auditors, creditors, customers, and if it is a listed company, then informing the stock exchanges. All the formalities are legal and must be adhered to by the company management/owners.
There are seven main steps for carrying out Company Liquidation in Dubai.
Clearances are required from the following authorities for a Business Setup in the UAE.
Preparation of liquidation report by an Auditor based in Dubai
The entire process is complicated to execute and requires professional business consultants like Absher Business Consultancy, who offer company liquidation services. The primary and significant step in liquidation is getting the business and other licenses canceled. For sole establishments in Dubai, the license is canceled through the Department of Economic Development (DED).
Company Liquidation Services
Business Consultants in Dubai, like Absher Business Consultancy, have extensive experience in Business Setup Services and liquidating companies in UAE; thus, their services are invaluable. They are among the best liquidators in Dubai and are experts in the entire process of company liquidation in the UAE.
The liquidation process requires dealing with various regulatory authorities and other stakeholders in the company. Dealing with all of them is time-consuming, and requires knowledge about the formalities and documentation required. There is also the burden of dealing with all the utility services, banks, creditors, and other authorities and getting the approvals and No Objection Certificates. The advantage of outsourcing this entire process to Consulting Companies in Dubai is to get the liquidation process done quickly and in a hassle-free way.