Call Us +971 4 240 8784

Liquidation/De-Registration

Related Posts

Liquidation Of Company

Liquidation Of Company






Company Liquidation Services, Wind Up & Deregistration

The process of liquidating a company in Dubai may be time-consuming and challenging. Nonetheless, our liquidators in Dubai, UAE, are equipped with the knowledge and experience to simplify all legal procedures and guide you through the liquidation of your business.

One of the reasons businesses in Dubai are liquidated is when they lack sufficient finances to conduct their daily activities and operations or when they generate insufficient earnings to break even and are in debt.

Another major reason for a company to be liquidated could be an occurrence of fraud or a violation of laws and regulations leading to dissolution of a company.

What is Company Liquidation?

Company liquidation in Dubai is winding up a company's affairs and distributing its assets to its stakeholders.

Why is Liquidation of a Company required?

There are several reasons why a company may need to be liquidated. Firstly, informing government entities that you have stopped operating the business is imperative to avoid any accumulated fines or penalties on your license upon expiration. Secondly, you must address your obligations and liabilities towards your creditors and partners.

What are the Types of Liquidation in Dubai?

The UAE law recognizes two types of company liquidations:

  • Voluntary Liquidation:

  • In a voluntary winding up, the company's shareholders decide to liquidate the company voluntarily. The process is initiated by passing a special resolution at the company's general meeting, where shareholders agree to wind up the business. Upon passing the resolution, the company is required to appoint a liquidator to take control of its affairs and distribute its assets.

  • Compulsory Liquidation:

  • An order of compulsory liquidation is issued by a court when it decides to wind up a company. For example, the court may issue a winding-up order if the company is insolvent, has failed to pay its debts, or has engaged in fraud. In compulsory liquidation, a liquidator is appointed by the court to take control of the company's affairs and distribute its assets to its stakeholders.

What is the Company Liquidation Process in UAE?

The steps for Liquidating a Company should be followed by all businesses. Nevertheless, entrepreneurs should consider all the necessary factors before undertaking a company liquidation in UAE.

The official liquidation process begins with submitting a declaration letter by the Liquidator and partners to the Licensing Authority to ensure no objections will be raised during the grace period. Once all necessary government permits have been obtained, the company formation card at the Ministry of Human Resources and Emiratization must be canceled. To terminate the foreign partners' visas, the relevant General Directorate of Residency & Foreigners Affairs must be contacted for clarification. The Licensing Authority requires all necessary documentation and sets a fee to obtain clearance for cancellation.

The process of Liquidation of a Company involves various other stages. Whether you are searching for company liquidation services in Dubai or need more information regarding the detailed process for dissolving your company, you can contact one of our advisors for more details.

What is the Role of a Company Liquidator?

During the liquidation process, the liquidator carefully examines the company's finances to identify and sell unsecured assets that can benefit creditors and shareholders. The shareholders can either appoint the liquidator through a resolution, or the court can appoint them in compulsory liquidation cases. Upon appointment, the liquidator will provide a formal acceptance letter and prepare a statement of affairs and a liquidator's report to be used in the official liquidation process.

If a company needs to pay off its debts and distribute any remaining funds to its shareholders, a liquidator is responsible for the liquidation process. The purpose of this requirement is applicable to legal forms such as general partnerships, limited liability companies, simple limited partnerships, as well as public and private joint stock companies.

Overall, the role of a liquidator is crucial in ensuring that the company's debts are paid off, and remaining funds are distributed fairly and appropriately. Therefore, choosing a reliable and trustworthy liquidator is essential to ensure a smooth and efficient process.

What is the Purpose of the Liquidation Report?

The UAE authorities require a liquidation audit report to revoke a trading license for companies undergoing liquidation. This report is essential as it outlines the company's debts and assets and provides all relevant financial information to the Company Liquidator.

The liquidation report provides a clear and transparent picture of the company's financial position, including its assets, liabilities, and outstanding debts. All financial records must be made available to the liquidator to identify any potential issues or discrepancies that may need to be addressed during the liquidation process. In addition, the proposed distribution of assets among the stakeholders is outlined in the report to ensure that each party receives their fair share. Finally, the liquidation report ensures compliance with local laws and regulations governing the liquidation process in the UAE.

What are the Documents Required for Company Liquidation in Dubai?

In order to liquidate the company, it is necessary to submit the necessary documents and information. In our role as responsible parties, we must ensure that all documentation is prepared in accordance with UAE law. Contact one of our advisors if you are looking for company liquidation in UAE and would like to know more information about the documents required for the dissolution of your company.

What are the procedures for company liquidation in Dubai, UAE?

For the liquidation of the company to take place, specific procedures must be followed. Regarding our role as a responsible party, we are responsible for ensuring that the liquidation process is being done in accordance with the UAE law. For more information about the procedure for the dissolution of your company, contact one of our advisors if you are looking for company liquidation services in Dubai.

How can AMCA help you with company liquidation services in Dubai, UAE?

AMCA are well-established liquidators in Dubai that provide liquidation solutions to clients across various industries. Their expertise and extensive experience in the field make them a top choice for clients looking for company liquidation services in Dubai.

  • AMCA is committed to providing exceptional service and saving clients time, effort, and money. They take care of all the necessary documentation and approvals, making the liquidation procedure convenient for their clients.
  • AMCA's experience with government authorities allows them to expedite the process significantly, ensuring clients can complete their liquidation quickly and efficiently.
  • To ensure that clients receive the best possible service, AMCA assigns a specialized consultant to assist them. With AMCA's comprehensive approach and commitment to client satisfaction, clients can trust that their liquidation needs will be handled with care and expertise.

Frequently Asked Questions

  • What are the liquidation and deregistration of a company in UAE?

  • Deregistration and liquidation of a company in UAE involve the legal process of closing down a business and removing its name from the commercial register.

  • Are there any documents that must be submitted in order to file for corporate insolvency?

  • The documents required to file corporate insolvency include a liquidation application, the company's memorandum of association and articles of association, and the liquidator's consent to act as a liquidator.

  • What is winding up of a company in the UAE?

  • The procedure of winding up of a company in the UAE means legally dissolving it and distributing its assets to its shareholders or creditors.

  • What are the duties of a company liquidator?

  • The duties of a company liquidator include managing the company's assets, paying off its debts, and distributing its remaining assets to its shareholders or creditors.

  • What is the procedure for liquidation?

  • The procedure for liquidation involves appointing a liquidator, notifying creditors and shareholders, selling assets, paying off debts, and distributing remaining assets.

  • How long does it take to wind up a company in the UAE?

  • The time it takes to wind up a company in the UAE depends on the complexity of its assets, liabilities, and legal requirements. Still, it typically takes a period of time to complete.

  • How can AMCA assist with the liquidation of a company?

  • AMCA assists with the liquidation of a company by providing comprehensive corporate solutions, managing all necessary documentation and approvals that are required for company liquidation process, and assigning a specialized consultant to assist clients throughout the process.

  • What happens to a firm's branch that is founded in one emirate but controlled by a branch in another that is dissolved?

  • The branch of an emirate-based firm that controls a branch in another will be liquidated in accordance with the laws of the emirate where it began.

  • Can a company be deregistered if it has outstanding debts?

  • A company may be deregistered if it has outstanding debts, but the liquidation process must be completed, and its creditors must be paid off before deregistration can occur.

  • What are the costs involved in the liquidation and deregistration of a company in the UAE?

  • The costs to liquidate a company and deregistration of a company in UAE depend on the complexity of the liquidation process, the value of the company's assets, and the liquidation fees charged by the liquidator and government authorities.
› Enquire Now › › Enquire Now ›