Company liquidation is the process of winding up a business, selling its assets, and distributing the proceeds to creditors and shareholders. In Dubai, both mainland and free zone companies may need to undergo liquidation for various reasons, such as insolvency, shareholder disputes, or strategic business decisions. Real Time Auditors and Consultants, a leading financial services firm in Dubai, provides comprehensive company liquidation services, ensuring a smooth and compliant process. In this guide, we will discuss the company liquidation process in Dubai, the types of liquidation, and how Real Time Auditors and Consultants can help your business.
There are two main types of company liquidation in Dubai:
A. Voluntary liquidation:
This occurs when a company’s shareholders or directors decide to wind up the business voluntarily. Common reasons for voluntary liquidation include business restructuring, shareholder disputes, or strategic decisions.
B. Compulsory liquidation:
This type of liquidation is initiated by a court order, usually due to the company’s insolvency, failure to comply with legal requirements, or other serious issues.
Real Time Auditors and Consultants will guide your business through the company liquidation process in Dubai, ensuring compliance with local regulations and a seamless experience. The process typically involves the following steps:
A. Board resolution and liquidator appointment:
The company’s board of directors must pass a resolution to liquidate the company and appoint a licensed liquidator, such as Real Time Auditors and Consultants.
B. Obtain necessary approvals:
The liquidator will help the company obtain the required approvals from relevant government authorities, such as the Department of Economic Development (DED) or the respective free zone authority, and other entities like the Ministry of Labor and Immigration Department.
C. Settle liabilities and cancel licenses:
The liquidator will assist the company in settling its outstanding liabilities, such as taxes, employee salaries, and creditor payments. After settling the liabilities, the liquidator will obtain clearance certificates and cancel the company’s licenses and permits.
D. Sell assets and distribute proceeds:
The liquidator will oversee the sale of the company’s assets and distribute the proceeds according to the priority set by law, which typically involves paying creditors first, followed by shareholders.
E. De-register the company:
Finally, the liquidator will de-register the company with the relevant authorities, marking the end of the liquidation process.
Real Time Auditors and Consultants offer expert company liquidation services, providing businesses with several benefits:
Company liquidation in Dubai can be a complex and challenging process. Real Time Auditors and Consultants provide comprehensive liquidation services, ensuring a smooth and compliant experience for your business. By working with their experienced team, you can confidently navigate the liquidation process and safeguard the interests of your creditors and shareholders.