How to Liquidate a Company in DIFC | DIFC Liquidation
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DIFC Liquidation

How to Liquidate a Company in DIFC ?

If your business is forced into going through involuntary liquidation in Dubai International Financial Centre or you are convinced that DIFC liquidation is your most appropriate option right now, we recommend you seek the help of approved liquidators.

Process of company liquidation in DIFC

First and foremost, you would have to decide that you want the company liquidation. If there are several directors to the company other than yourself, you would have to convene with the. During this meeting, a liquidation resolution will be passed. The resolution has to appoint liquidators DIFC and the official recognition of the company regarding its insolvent position.

The first stage of company liquidation in DIFC

  • All existing staff members are paid off
  • An approved liquidator in DIFC is appointed. And the board of directors’ resolution is attested by a public notary in UAE
  • DED fees are settled for the issuance of a certificate of company liquidation
  • Public notices are published in two separate Arabic or local newspapers for the liquidation of company and the waiting period of at least forty-five days for creditors or partners to raise claims
  • The furnishing of a Final Audit Report and copies of the ads from local newspapers to the DED

The second stage of company liquidation in DIFC

  • Visa cancellation of all directors
  • Securing of clearance letter from MOHRE
  • Presentation of cancellation certificate, establishment card and request letter to the Immigration Head Office

Read more: Liquidation Process for A Company with No Assets

How assets are sold for liquidation DIFC

As part of a company liquidation process, including for a DIFC restaurant liquidation, an insolvency expert will be arranging for the business’ assets to be valued by a professional or by a firm of values. It can happen in a meeting of directors or shortly after. Agents will be visiting the premises of the business in order to produce a complete and exhaustive list of the inventory of the business and its assets. A valuation will be given and it will be based on a breakup or going concerned. Take note: there should not be any company asset sold if the meeting of creditors hasn’t taken place yet. Approved liquidators in DIFC can, however, speak with all interested parties before the meeting of the board of directors in order to attempt or increase the value of all potential offers.

The company liquidator that was appointed by the board of directors is under oath in maximizing the realizations of sale of assets of a company under liquidation. A company liquidator can sell assets back onto directors regardless of whether or not creditors or partners are happy with the liquidator’s decision.

Costs of company liquidation in DIFC

There are fees to be settled with local authorities for the finalization or completion of company liquidation in Dubai International Financial Centre. An appointed liquidator has to keep records of transactions and time that is spent on the process of liquidation. It’s often the case for approved liquidators in UAE to seek a board resolution during the meeting of directors that costs are settled on a time basis. In any type of liquidation, whether voluntary or mandatory a liquidator has to set out all the details of costs that will be paid for the professional’s services. The liquidator also has to get the approval of the creditors.

In the event costs of hiring the liquidator to exceed original estimates approved by company creditors, additional costs will only be settled when creditors all agree in them. Typically, fees and costs of a company liquidator DIFC are settled by asset realizations.

You may be interested in Compensation for Employees When Businesses in UAE Close

DIFC Liquidators – Professional Help

Closing a company in DIFC involves a process that’s both time-consuming and incredibly stressful. If you want to ensure that you’re complying with all statutory requirements, we suggest you talk to seasoned liquidators today like Farahat & Co. is a regulated firm, listed with Dubai International Financial Centre (DIFC) as an approved financial auditor/liquidator. And listed as an expert witness with Dubai, Abu Dhabi, UAE Courts also, as a regulated liquidator.

Mohamed Ali Farahat has worked on various forensic accounting assignments, which include operational and financial audits, reconstruction of accounting statements, financial information analysis, and investigation of fraud and financial distress. Read more