Company Liquidation Services in Dubai, UAE
The UAE is a magical land for investors. Many have achieved phenomenal success by establishing business ventures in the country. At the same time, it can also happen that the company may have to be closed down owing to various reasons. Due to either unsatisfactory performance and debts or fulfilling the requirement, which the company was intended for. Company liquidation in Dubai can be completed smoothly by pursuing the laid down procedure.
Hiring company liquidation services in Dubai is important for complying with the promulgated regulations. Liquidation is also referred to as winding-up, dissolution and closing. The liquidation process would include selling off the assets, products and raw materials. Any debt pending in Dubai would have to be settled before transferring the balance amount to the shareholders.
The authorities would cancel the business license on liquidation of the firm. Further, the registration of the firm with the Dubai Chamber of Commerce would be removed. subsequent to liquidation. A painful process many a time, you would require a reliable company liquidation services in Dubai by your side. Proficient professionals would handle the entire process in a meticulous manner.
Company Liquidation services in Dubai, UAE
We understand how difficult it is for an entrepreneur to watch the dream melting away. Our wholehearted support would ensure that the owner is at ease while company liquidation in Dubai is happening.
The team would assist also in selling the assets remaining after company liquidation. Amount gained from the sale can be shared among the shareholders. Having a close association with the authorities, we have been offering optimal assistance in company liquidation.
Types of Liquidations
Most of the time company liquidation may be the only option left with the owner. In some cases, the authorities may direct the closing down of a debt-ridden entity. Two types of liquidations are there:
The company owner, the board of directors or a joint resolution by the shareholders may decide upon winding down the business operations. This type of company liquidation in Dubai is called Voluntary Liquidation. The common reasons for voluntary liquidation are:
. Death of the owner or the primary shareholder of the firm and there are no successors
. Company facing heavy loss, making the business operations difficult
. No probability of success
. On fulfilment of the target
. Merger with another entity
Compulsory liquidation in Dubai is done by the authorities. This means the authority will close down the company by force as and when necessary. The owner or shareholders cannot object to compulsory liquidation, as it is undertaken after a thorough study by the authority. The conditions in which compulsory liquidation occurs are:
. It is proven that the company violated the law of the land
. The company has become insolvent and the lenders have approached the authority requesting action
Compulsory liquidation is carried out with the help of an authorized company liquidation services in Dubai. The money acquired by selling the assets would be paid to the lenders.
Company Liquidation Process
The liquidation process commences with selecting an approved company for liquidation services in Dubai. The liquidator, the agency handling the closing down the process, would manage the process on behalf of the owner and shareholders. Selection and appointment of the liquidator are at the discretion of the company/ board members/ shareholders in the case of voluntary liquidation. In the case of compulsory liquidation, the authority or the court will appoint the liquidator.
The Company Board of Directors Meeting
Board directors' meeting may not be required if a single person owns the company. Otherwise, the majority of the board of directors has to decide upon the winding of the entity. All the board proceedings and final resolution has to be documented. An authorized public notary must attest to the document to make it authentic.
Application for Liquidation of Company in Dubai
The Department of Economic Development (DED) is the authority for all the business-related approvals in Dubai. A liquidation form signed by the authorised person has to be submitted to the DED for approval.
Publication of the Dissolution Decision
It is the responsibility of the entity to publicise the decision to close down. On receipt of approval for dissolution, the company must publish the decision to liquidate in a local Arabic newspaper, at least 45 days in advance from the date of liquidation. This will allow enough time for the moneylenders to stake their claims.
The selected company liquidation services in Dubai must accept the offer from the company to undertake the liquidation process forward. All the approvals and orders have to be documented. The board should inform the liquidator in advance about the decision to appoint them. To avoid last-minute dilemmas.
The DED allows a 45-day notice period for company liquidation in Dubai.
Cancellation of Visa Associated with the Company to be liquidated
All the visas associated with the company have to be cancelled within the 45-day period provided by the DED. This includes visas of employees, shareholders, and family members. The Ministry of Labour as well as the Ministry of Immigration issue NOC subsequent to the cancellation of the visa.
Settlement of Dues to Departments
All the dues of the company to departments including the telecommunication department have to be paid. The department would issue a NOC on clearing the dues. This NOC is another mandatory requirement for company liquidation in Dubai.
Report Submitted by the Liquidator
The company liquidation services in Dubai or the liquidator submits an audit report which would affirm that there are no pending dues. All the debts, payments and loans must be paid in the given timeframe to avoid delays.
Certification of Liquidation of the Company in Dubai
After complying with the abovementioned formalities, like clearing of dues, cancellation of visas etc, the DED can be approached for issuance of a liquidation certificate. The DED would examine the conditions and confirm that everything has been complied, with before issuing the certificate.
After this, the company ceases to exist in any of the documents in Dubai. The owner is free to return to his or her country. Or to begin another business.
Documents required for Company Liquidation in Dubai
The company liquidation in Dubai necessitates a number of documents. The company liquidation services in Dubai can help you in obtaining most of the documents related to winding down.
· Copy of business license of the company
· Copy of MOA
· Copies of passports of the owner/ shareholders
· Copy of Emirates ID
· Power of Attorney (POA) if required
· Shareholders’ resolution
· Application form (s)
Why Kiltons Business Setup services for Company Liquidation in Dubai?
Kiltons has been the leading business service provider in the UAE since 1999. Experienced in every aspect of business setting up, liquidation, renting of office space etc, we have been the right support for companies in the country.
With over two decades of experience, we understand your needs. We offer responsible company liquidation services in Dubai. To discuss your requirement, contact us now.