Company Liquidation in Dubai
Company liquidation in Dubai refers to the procedure of winding up a company and ceasing all associated operations. It typically occurs when a company faces financial difficulties and lacks the necessary funds to settle its outstanding debts.
During the liquidation process, the company’s assets are distributed among its shareholders and creditors according to the order of priority in their claims. This process, known as liquidation, is overseen by a liquidator who is appointed by the company’s management.
Company Liquidation Process
Tourists can collect their refunds through a special device placed at the departure port – airport, seaport or border port. They must submit:
- Liquidator's confirmation must be prepared and submitted to the relevant authorities - Liquidators must be appointed
- For 45 days, publish a liquidation advertisement in any two local newspapers;
- Asset realization
- All pending expenses, such as Etisalat and DEWA, will be paid
- Wage payments and cancellation of visas for all company employees
- Supervise the maintenance of accounting records
- Contract cancellation and identification of liability
- The closing of a bank account
- Make sure you file your VAT returns
- Submission of VAT De-registration to Federal Tax Authority (FTA);
- Prepare and submit the report of the liquidator to the concerned authorities;
- Organize the audit of the liquidation and preparing company liquidation audit report;
- Submission of all the original documents to the concerned authorities;
- Cancellation of trade license.
Types of Liquidations
Compulsory liquidation and voluntary liquidation are the two main types of insolvent company liquidations
Compulsory liquidation occurs when a company fails to fulfill its liabilities, leading creditors to seek court intervention to dissolve the company and recover their money. The court may compel the company to liquidate its assets in order to repay its outstanding debts. In this type of liquidation, the shareholders may choose a liquidator through a resolution or the court may appoint one.
Voluntary liquidation refers to the winding up of a company that is initiated and agreed upon by the shareholders. This decision is made when the company’s owner determines that there is no purpose in continuing the operations of the company. In voluntary liquidation, the shareholders proactively choose to dissolve the company.
Documents Required for Company Liquidation in Dubai
In Dubai, there are various documents that need to be submitted for the company liquidation process. The following are the necessary papers required for company liquidation in Dubai:
- Copy of the license
- Copy of the Memorandum of Association (MOA), with any changes
- Power of Attorney, if any
- Copies of all shareholders’ passports
- Copy of your Emirates identification
- Resolution of the shareholders
- De-registration application form
Company Liquidation Services in Dubai
MARKEF provides professional company liquidation services for various types of business establishments in Dubai, UAE, including LLCs, offshore establishments, and Free Zone companies. When a company faces severe financial difficulties and is unable to manage its debts, the process of company liquidation allows for the winding up of its operations and activities.
This complex process involves extensive documentation and negotiations with relevant parties and government agencies. De-registration, an essential aspect of company liquidation, refers to the formal removal of the company’s legal status. Other terms such as company cancellation or dissolution are also used to describe the process of company liquidation in Dubai and UAE.
Without the utmost professionalism and dedication, company liquidation in Dubai or UAE can become a time-consuming and arduous task.
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MARKEF is a leading Accounting Firm offering wide range of services including Accounting and Bookkeeping, Audit and Assurance, VAT and Corporate Tax, Business Consulting, Management Consulting, and Business Setup Services in Dubai and across United Arab Emirates.
- Office No.1929, Tamani Art's Offices Tower, Business Bay, Dubai, United Arab Emirates
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