Company Liquidation Services UAE
Company liquidation is a hectic task. The liquidation of a company is not just about closing it down; there are many factors to be considered while doing so. The government authorities have to be notified, the business licenses will have to be canceled, assets need to be distributed and the list goes on. The legal formalities included in company liquidation are the most tedious task among them all.
There can be diverse reasons for liquidation, the major ones are;
- The expiry of license/ duration stated in the articles of incorporation/ association or the accomplishment of the objective for which the entity was set up
- The loss of all or a major portion of the entity’s assets
- Shareholders’ approval that the entity’s term of existence can be brought to an end as per stipulated majority, etc.
When the company fails to pay the debts and dues, the creditors file a suit in the court demanding the liquidation of the company. If the company is not able to pay the dues within the date issued by the court, the company’s accounts will be frozen and the assets will be liquidated and divided among the creditors.
In the case of voluntary liquidation, when the company fails to pay its debt, the directors, owners, and shareholders will take a unanimous decision to liquidate the company. The r process will be handled by the liquidator necessarily appointed by the shareholders.
Who is a Liquidator?
The person who is in charge of conducting the liquidation process is termed as liquidator. The court or shareholders of an entity appoints a liquidator and it is dependent on the type of liquidation as well.
License cancellation is one of the primary steps in the liquidation process, and the formalities differ based on the form of company. In the case of establishments and sole proprietorships, you will have to apply for cancellation through DED. Also, clearances need to be acquired from the below-mentioned departments-
- Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- The relevant water and electricity authority
- The leasing entity
What are the processes involved in company liquidation in Dubai?
- The first step of company liquidation is to submit a notice to the Dubai Development Authority (DDA) mentioning the reason for liquidation.
- The board resolution for de-registration of the company must be attested by the owners before the authorities of the DDA.
- Advertise in newspapers about the liquidation of the company.
- Original company license, Certificate of Formation & Share certificates, Lease agreement, and the Original Department of Economic Development License must be submitted to the DDA.
- Get clearance from the concerned departments to complete the liquidation process.
- The final step is to submit the liquidation report which must be prepared by an auditor in Dubai.
There are certain things to look into when you decide to liquidate a company. Leaving the task to a professional who provides company liquidation services will be a wise choice.
How Jumeira Consultants can help in Company liquidation in UAE?
Jumeira Consultants have been offering company liquidation services for over a decade. Being one of the top liquidators in Dubai, we ensure to assist you in the entire process of company liquidation. The liquidation process of a company is mostly legal formalities and without the support of a liquidation service provider, it could be tiring and more time-consuming. Our team of company liquidation experts will guide you in the entire process. We can assist you as a liquidator and as a liquidation service provider.
Canceling of licenses and seeking approval from different government authorities will be done by our professionals and will help you attain the liquidation report as soon as possible. Cancellation of the license, advertising in at least two newspapers about the company’s liquidation, submission of declaration papers at the Department of Economic Development (DED), obtaining objection letter from the partners, cancellation of the partner’s visa, liquidating the assets, can all be done by Jumeira Consultants. We offer company liquidation services across the country and we aim to make things easier for our clients with our prowess. With our extensive experience in offering company liquidation services, we have been able to keep our relationship with the government authorities and agencies alive, which will make things a lot easier.
If you are looking for company liquidation services in Dubai or a liquidator, contact us today.