Company Liquidation Service in Dubai – UAE

Company Liquidation Service in Dubai – UAE : Dubai is considered as a business destination for many. With abundant opportunities, it attracts novices and experienced businessmen to it. But, certain unforeseen circumstances and poor market response may hinder your business growth or cause financial difficulties. In some scenario, it is advisable to initiate the liquidation process for your company. In certain cases, business closure may be determined through a mutual agreement, necessitating either the shareholders or the court to engage a liquidator. The liquidator is responsible for commencing and overseeing the company’s liquidation process, which often involves tasks such as deregistering the company and liquidating assets. Notably, in the UAE, a certified and regulated liquidator is mandated to initiate and carry out this process.

This process may become a hassle if one does not hire an appropriate agent. A typical liquidation process includes finalizing the company affairs, looking up of liquidation stock, selling or distribution of assets to shareholders and creditors.

Initiating a Liquidation process in Dubai – UAE

When the daily business transactions are not conducted and creditors not being paid, the liquidation process for a company may be initiated. In a few cases, Dubai regulatory agency may impose liquidation if it believes your company has committed an offence. In some cases, the creditors may file for liquidation, while in a few this may be initiated voluntarily by the shareholders to end the business.

A board meeting is scheduled to draft the procedure for liquidation and appoint a liquidator. In case of imposed liquidation, all this is dictated via a court order.

Documentation for Liquidation process of a company

An official document which proves that the liquidation has been initiated is among the first of the documents required. It should also contain the details of the appointed liquidator. It is important to notarize the documents. Besides the original company registration documents, liquidators credentials must also be provided.

A business is then required to cancel special permits and licenses obtained in Dubai to conduct business activities. Branches of the company in Dubai are also required to provide their documents from the parent company in original. A checklist of the documents is given below:

• The dissolution documents about your company in Dubai
• A letter approving the liquidation of the company
• The license details of the appointed liquidator for your company
• The documents about the owners of the said company which is being subject to liquidation

Liquidation initiation procedure

Once this process is initiated, the company is erased from the Trade Register and it’s trading license revoked. The foreign investors of the company may face visa annulment. An official announcement signed by the liquidator regarding company dissolution is released. Get in touch with our experienced attorneys in Dubai for an in-depth analysis, and knowledge of legal terms involved in the liquidation process for a company.