Company Liquidation in Dubai, UAE
Company Liquidation Services, Wind Up & Deregistration
We are one of the leading liquidators in Dubai with a wide experience in the field. We have done a lot of liquidation of company in dubai, UAE in the past, guiding business people step-by-step with the company liquidation process.
We have an in-house liquidator regulated by the Courts in Dubai, UAE and the DIFC authorities in Dubai. The liquidation and deregistration of company proceedings, especially the physical part, can be very complicated and lengthy. We at Farahat & Co. can deregister your company in a smooth manner within a short period of time.
Liquidation – Our Minimum Fees AED 10,000
Liquidation of Company in Dubai & Deregistration of Company
There are cases that companies are not any more functional or there is simply a mutual agreement that it should be the end of a certain business. If your organization is in a situation like this, it can be expected that it’s going to be a dissolved company in the near future. There are a couple of other names that liquidation is known for, such as winding-up or dissolution (which is the final step of the process) or deregistration.
Tell-tale early warning signs of insolvency in business can be noticed by anyone, especially the employees themselves. Sometimes it lurks around the building itself or it is obviously seen in the financial statements or records of the organization. Having not enough funds to carry on with the day-to-day transactions of a firm, or failure in paying creditors with overdue debts, or a serious offense that has been done by the side of the company are some of the major causes for a closing company in Dubai, UAE or for shareholders or the owner himself to decide to go with a liquidation.
Liquidation of a company is a process, perhaps a long one if not handled by an agent. Within this process, the company’s affairs are finalized, which means there is a liquidation stock or the assets are sold or fairly distributed to the creditors and shareholders and past actions are investigated. According to the commercial law of the United Arab Emirates (UAE), liquidation of a company should be done or the company can or must be liquidated and deregistered (company deregistration in Dubai) in the following cases (one case only is enough):
- If the majority of the shareholders decide to liquidate the company.
- If the company suffers insolvency, which causes accumulated loss that is greater than half of the authorized capital.
- If there is a court ruling to dissolve and liquidate the company.
- Voluntary liquidation can also happen if a vital member of the organization exits the company and the shareholders decide not to continue operations.
A close of business can be caused by various factors, but it is certain that it is not indeed an easy task, that is why it is best to be done with specialists in the field.
Liquidators in Dubai
For simplification, a liquidator is a person who is appointed by the shareholders or the court to gather and conduct the requirements and process of company liquidation in Dubai and deregistration of company, winding up a dissolved company in the act of selling its assets. Most countries’ requirement for liquidators, known to us, are certified and regulated one and the UAE requires the same.
The job of the liquidator once began, is to have the organization’s assets be sold and pay the creditors with the income from the sale. If there is any money left afterwards, the rest would be fairly distributed to the shareholders. In addition, liquidators are also expected to bring and defend lawsuits.
We have an in-house liquidator regulated by the Courts in Dubai, UAE and the DIFC authorities in Dubai. Company liquidation services in Dubai and deregistration of company proceedings, especially the physical part, can be very complicated and lengthy. We at Farahat & Co. can deregister your company in a smooth manner within a short period of time. Our more than 30 years of experience do not only focus on this field but a lot more than you can benefit of when you are in need of them, such as the processing of trademark registration UAE and building a Fraud Prevention System for your company as we are a certified fraud examiner. We also have in-house CPAs who take care of consultation and processing of the impending implementation of VAT in UAE. These CPAs also handle our bookkeeping and accounting services in Dubai and as well as our payroll and HR solutions service. These people go hand-in-hand with our auditors for Owners Association in Dubai and project developers audit service because we are also one of the prime auditing firms in Dubai.
Company Liquidation Process
The below list is the entire process of the liquidation of company, and as one of the top liquidators in Dubai, we can aid you from the start all the way through. The requirements and task execution of voluntary liquidation or closing company in Dubai and deregistration in Dubai, UAE, are as follows:
- Nominate a liquidator—must be a regulated auditor
- The board of the company has to issue a resolution that the company is under liquidation, appoint a liquidator, and mention the name and address of the appointed liquidator.
- The appointed liquidator must announce a brief of the board resolution and the liquidation in two local newspapers.
- The creditors (if any) must submit their claim or/and their objections (if any) within the time limit mentioned in the announcement. Other interested parties have the right to object the liquidation during the time limit.
- In case the time limit is not enough, the liquidator can ask the shareholders for a time extension.
- When the liquidation task is fully completed, a liquidation report must be issued by the appointed liquidator.
- On closing the liquidation, an application for the company deregistration along with a copy of the liquidation report must be submitted to the company’s registrar. Once the application is approved, the company’s registrar office will issue a certificate of deregistration.
Frequently Asked Questions
What are the documents required to file corporate insolvency?
Documents required in filing for corporate insolvency are as follows:
- Completed cancellation form;
- Notarized partnership cancellation contract;
- Notarized general assembly minutes confirming company liquidation and appointment of liquidator;
- Official letter from registered company liquidator accepting liquidation duty
Note: other legal documents may be required to secure the required approvals of different government agencies in canceling a business license and liquidating the business.
What happens when a company goes into insolvency?
When a company decides to go into liquidation, all of its assets are put into auction in order to repay its creditors. Its name is also removed from registries and the business is closed
What are the duties of a company liquidator?
Company liquidators have numerous duties and responsibilities to successfully wind up a company, including:
- Open an account under the company’s name to deposit funds that can be reclaimed from selling off company assets;
- Take inventory of company assets and liabilities;
- Prioritize outstanding debts and divide assets between various shareholders;
- Repay loan taken;
- Represent the business in courts, if litigation is filed;
- Provide a report declaring assets of the business and settlement of liabilities