Company Liquidation is an insolvency operation in which a company is liquidated, and all its properties are dissolved. The proceeds are used to pay debts, cover expenses. And distribute any remaining surplus to the business owners. MASAR is a leading business consulting and auditing firm in Dubai and the United Arab Emirates. Considering your experience in finalizing the company liquidation process in the UAE. Our specialists will facilitate your work. A liquidator is an agency or company registered in the UAE. Usually an accounting or auditing firm. Which is tasked with selling the company’s assets to earn money and pay off the remaining debts. Immediately after being elected, the Dubai liquidators will deliver a formal letter of acceptance. They will provide the liquidator’s report until all their responsibilities, necessary to complete the liquidation procedure, are fulfilled.

Company liquidation Services

Company Liquidation service in the UAE is the process by which the company recovers all its business and must close. When it is determined that a company’s services cannot continue, the company must close. This can happen for a variety of reasons.

The company’s liabilities can far exceed its assets, putting the company in danger of bankruptcy. The company will have to close if it cannot continue operating. The liquidation of a company may also be optional if the management has decided to close it for reasons known to it. After the liquidation procedure. All the assets of the company are used to cover all the obligations of the company. If any assets remain after all corporate liabilities have been settled, they are sold. And the profits are divided between the directors and shareholders of the company.

Business Liquidation Process

To maintain compliance, a company must carry out all the steps associated with the liquidation of the company in Dubai.

The following are the steps involved in liquidating a company in Dubai or the rest of the UAE:

• Drafting and acceptance of a dissolution agreement by shareholders
• In the case of Limited Liability Companies (LLCs) incorporated in the United Arab Emirates. The resolution must be certified by a Notary. If the shareholders are not present in the UAE. The resolution must be notarized and certified at the relevant UAE Embassy. Followed by certification from the UAE Ministry of Foreign Affairs and the UAE Ministry of Justice.
• Hiring a Trustee and Receiving the Trustee’s Formal Acceptance Letter.
• After receiving a provisional company liquidation certificate. The company can proceed to publish a liquidation notice in English and Arabic in a public newspaper.
• Presentation of the shareholders’ meeting resolution before the corresponding authorizing body. Together with all the paperwork and the necessary payments.
• 45 days’ notice will be required when,
  • Work permits and visas for all workers and partners will be revoked.
  • Authorization letter from the Department of Immigration.
  • Authorization letter from the Department of Labour.
  • Letters of authorization from utility companies: water, energy, and telecommunications.
  • As well as, letter of approval from the leasing company (owner).
  • Letter of approval from the Roads and Transport Authority (RTA).
  • Authorization letter from the Federal Customs Authority (FTA).
  • Bank account closing letter.
  • FTA sent a VAT registration deregistration letter and a VAT compensation letter.
• The liquidator can create the company liquidation report once the notice period has ended.
• The final Report, including all associated paperwork and the requisite cancellation costs, should then be sent to the appropriate Authority.
• The Authority will examine the application and, if it is granted, will issue a “License Cancellation Certificate.”

Types of Company Liquidation

There are two types of business liquidation in Dubai:

Voluntary liquidation of companies

If the company does not have enough money to run a business or cover expenses. Such as bills and salaries, the company has ongoing losses. If so, the companies will opt for the voluntary liquidation of the company. As they do not have sufficient funds to remain in the competitive UAE market.

Compulsory Liquidation of the Company

If a company violates the rules and regulations of the authorities or commits a crime such as fraud or any other serious crime. The government will immediately close the company and in this case. The compulsory administrative liquidation of the company is required according to the court order.

If you have any inquire or need any help regarding Company liquidation in UAE, Feel free to Contact MASAR Chartered Accountants. We are always available for your help.

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