Closing your business in Dubai, or elsewhere in the UAE? There are numerous things to consider, such as company and business name cancellation, employee payments, cancellation of taxation registrations, and other relevant legal obligations. Selling a company is only sometimes the best solution.
In Dubai and the UAE, corporate liquidation is when a business ceases operations and activities when it confronts a severe financial crisis and cannot handle its current obligations. Bizvisor provides company liquidation services across the UAE, for various company establishments such as:
The procedure involves extensive paperwork and agreements with the parties involved and other government bodies. De-registration is a critical component of the company liquidation procedure. Additional terms for corporate liquidation include cancellation of the company, dissolution of the corporation, and so on. Company liquidation in the UAE may be more convenient and less stressful if handled professionally and diligently.
Liquidation may be:
This is extremely important for a number of reasons.
If you do not follow the correct legal liquidation procedures, you could end up with severe penalties and fines. Merely clearing all your debt is not sufficient. The company trade license has to be liquidated following the approved, government mandated process.
In addition, failure to do so may result in the company and every single shareholder and director being blacklisted. This may impact future business ventures and the ability to move freely through the UAE.
Appointing Bizvisor as your business liquidator will help simplify the process. Our primary tasks as part of the company liquidation process in the UAE include the following:
Assessing and managing the firm’s assets and liabilities:
As the liquidator, we assess your company’s financial condition, including its assets, debts, and commitments. We ensure that assets are correctly accounted for, evaluated, and sold to maximize recoveries for creditors and stakeholders.
Distribution of proceeds and management of creditor claims:
The liquidator is in charge of distributing the asset sale proceeds to creditors in the order of priority established by law. We analyze and authenticate creditor claims, ensuring fair and equitable distribution treatment.
Communicating with stakeholders:
The liquidator serves as a liaison between creditors, stockholders, and workers. We offer frequent updates on the liquidation process, respond to requests and concerns, and assist with the appropriate documents and processes.
Completing legal and administrative requirements:
The liquidator produces and files relevant legal papers, such as the statement of affairs and final liquidators’ report, which outline the company’s financial status and the results of the liquidation process. We verify that all relevant rules and regulations are followed throughout the liquidation process.
Discharging the company’s responsibilities:
The liquidator ensures that the company’s outstanding debts, dues, and obligations are handled and satisfied. This covers the payment of employee benefits such as gratuities and notice period fees.
Overall, the function of a corporate liquidator is to effectively wind up the company’s affairs, protect creditors’ interests, and promote the firm’s orderly dissolution. At Bizvisor, we have years of experience providing business liquidation advice and services to a varied clientele. If you’re looking for a quick, seamless and efficient way to liquidate your company, look no further.
The following are some of the documents you will need to complete the liquidation process.
Your Bizvisor consultant will assist you in gathering and submitting the necessary documents.
While Free Zones do not legally require a company liquidator, it will still simplify the process by hiring one. This is because different free zone authorities may have different rules and procedures. Generally, the process includes the following steps:
There may be multiple processes and documents required at each stage. Bizvisor can help you easily navigate the steps.
Registered and licensed liquidators like Bizvisor must be employed to liquidate a firm in the UAE.
Liquidation is unavoidable if a firm fails due to everything from a lack of creative management to building debts, from almost-zero revenue inflow to rising expenses of redundant assets. In the absence of revenue planning and supervision over the continuity of losses over lengthy periods of time, liquidation is also necessary.
If the arbitrary dismissal is proven, the court will order the employer to pay the employee in accordance with Article 123 of the UAE Labour Law. In addition to remuneration, the employee may seek reimbursement from his employer for his gratuity, notice period dues, and any other outstanding debts.
The company approves a special resolution to voluntarily liquidate the firm. The voluntary winding-up commences on the day the resolutions are approved, and a liquidator should be appointed.
Here is the step-by-step procedure:
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