Liquidation of Companies in Dubai
Liquidation of Companies in Dubai or in any other place will be a point of discussion because the owner should mention clearly the reason for liquidation. It is the process by which an entity or the part of it comes to an end, and the assets and property of the company redistributed. It is also known as winding up or dissolution. When a business is terminated or bankrupt, its assets are sold and its creditors are paid off they will get priority and the remaining will be equally distributed among the share holders. Among Companies in Dubai it is advisable to appoint a liquidator for doing all the procedures.
Reasons for liquidating a company in Dubai
- The company is insolvent and not in a position to meet its debts.
- A company serves no purpose in going forward
- Sometimes a group of companies may need restructuring or reorganization and it is appropriate that one or more companies need to be wind up.
- To end the continued stress from the creditors for seeking payment.
- Sometimes the Directors running the organization decide to cease operations.
- Legal problems, due to law related issues.
Liquidation of companies in Dubai mostly because of owner’s decision to quit business or by the court order due to illegal business conduct.
The requirements for liquidating a Business set up in Dubai – JAFZA, DMCC, TECOM, DAFZA, DSO
Resolution for dissolution, Resolution for Appointment of Auditor/Liquidator and Resolution for Non liability Letter signed by all Shareholders/Authorized signatory in front of the concerned authority.
Latest Trade License of the company.
Share Certificate/Certificate of Incorporation of the Company.
Latest Audit Report of the company.
Memorandum of Association/Articles of Association of the company with all amendments.
Passport copies of all shareholders.
Bank Account Closure Certificate.
Clearance Certificates from different departments in the free zone such as Lease & License Department, Finance Department & Immigration Department.
Liquidation could either be compulsory, called as creditors’ liquidation or voluntary also called as shareholders’ liquidation. Experienced Business consultants in Dubai can make liquidation process much easier for the companies.
Liquidation of Companies in Dubai becomes inevitable when a business is not having liquid funds to hold on day to day transaction of
the entity, creditors aren’t being paid or company commits some serious offense. Expert consultants at Emirates Chartered Accountants Group Dubai can assist you for doing all the formalities of liquidation.