Company Liquidation
About Company Liquidation
The Liquidation of a business is a time-consuming process. A company’s Liquidation entails more than just shutting it down; there are several aspects to consider. Government authorities must be alerted, business licenses must be revoked, assets must be dispersed, and the list goes on. The legal processes associated with a company’s Liquidation are the most time-consuming of all.
When a corporation fails to pay its obligations and dues, its creditors file a lawsuit in court, requesting that the firm be liquidated. If the firm fails to pay its debts by the deadline set by the court, its accounts will be frozen, and its assets will be liquidated and distributed among creditors.
When a corporation fails to pay its debts, the directors, owners, and shareholders must agree unanimously to liquidate the firm. The liquidator, who the shareholders must choose, will oversee the procedure.
Why does Liquidation occur?
Liquidation can occur for a variety of reasons, the most common of which are:
- The license/duration indicated in the articles of incorporation/association expires, or the entity achieves the goal for which it was established.
- All or a significant percentage of the entity’s assets are lost.
- Merger Shareholders’ consent that a majority votes can terminate the entity’s duration of existence, and so on.
Cancellation of the license
The cancellation of a license is one of the first steps in the liquidation process, and the requirements vary depending on the kind of business. You must request cancellation through DED in the case of Business and sole proprietorships. Clearances must also be obtained from the departments listed below:
- The leasing entity
- Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- The relevant water and electricity authority
Company Liquidation Process
- The first step in liquidating a business is to notify the Dubai Development Authority (DDA) of the cause for the Liquidation.
- The owners must confirm the board resolution for the de-registration of the company with the DDA authorities.
- Advertise the company’s Liquidation in the press.
- The DDA must receive the original firm license, Certificate of Formation & Share Certificates, Lease Agreement, and the Original Department of Economic Development License.
- To finish the liquidation procedure, you’ll need permission from the relevant departments.
- The liquidation report, which an auditor in Dubai must produce, is the final stage.
When it comes to liquidating a business, there are a few factors to consider. It will be an excellent decision to delegate the work to a professional who specializes in company liquidation.
Documents Required
- Proof of Emirates Identity
- Evidence of the Memorandum of Association
- Copies of the passport of all the shareholders
- A power of attorney has to be provided if the organization possesses such a document.
- Application for de-registration
- Proof of their License
Why BlueKryon?
BlueKryon has been providing corporate liquidation services for some years now. We guarantee to support you throughout the entire process of company liquidation as one of the best liquidators in Dubai. A company’s liquidation procedure is largely legal formalities, and it may be exhausting and time-consuming without the help of a liquidation service provider. Our team of business liquidation specialists will walk you through the whole process. As a liquidator and a liquidation service provider, we can help you.
Our specialists will cancel licenses and seek clearance from various government agencies, assisting you in obtaining a liquidation report as quickly as possible. BlueKryon can handle everything from revoking the license to advertising the company’s Liquidation in at least two newspapers, submitting declaration papers to the Department of Economic Development (DED), obtaining objection letters from the partners canceling the partner’s visa, and liquidating the assets.
We provide corporate liquidation services around UAE, and our expertise aims to make things simpler for our clients. We have maintained our connection with government officials and agencies due to our significant expertise in providing company liquidation services, which will make things a lot simpler.
Contact us immediately if you need corporate liquidation services in Dubai or a liquidator.
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