Once a company in the UAE is planning to close, it is required to pass through a liquidation audit, which is a legal procedure to make sure all financial records, liabilities and assets are properly recorded before it is deregistered. At Farahat & Co., we assist companies to fulfill all regulatory and financial needs during siddolution, taking into consideration the UAE Government standards, Free Zones authorities, and international auditor standards.
Liquidation begins when a company has to decide to wind up its business operations due to financial distress. It is a very sensitive phase that requires a lot of professional skills. At Farahat & Co., we render highly customized services as per your company’s specifications. In our service, the auditors look into the books in a manner that every minutest thing regarding all assets and liabilities is checked; all creditors and shareholders are treated fairly and equitably throughout the entire process of company closure. The settlement of financial inspection brings about proof of honesty on the final financial records of your business. We take this responsibility with the highest professionalism and ethics it deserves.
Our company closure audit leaves no stone unturned when it thoroughly reviews and assures complete protection for all parties of interest. Be assured that this sensitive process shall be undertaken with complete diligence and transparency at Farahat & Co.
A liquidated company is the one that is officially terminated, and it is the company that is no longer involved in commerce. The procedure will provide equitable treatment to creditors, shareholders, and other stakeholders without violating the UAE laws. Companies that are thinking about company liquidation in Dubai ought to hire licensed professionals to prevent legal issues and to have transparency. Farahat & Co. is one such firm who can help in deregistation of companies in the UAE.
Using licensed liquidation consultants reduces risks associated with regulatory violations. Professionals ensure that deregistration processes and license cancellations are handled according to UAE laws, minimizing potential penalties.
Professional services can complete liquidation and deregistration efficiently, often within 45 days for mainland companies. This saves time and reduces administrative costs, ensuring faster closure.
Engaging experts like Farahat & Co ensures:
A disolution audit is not a mere official step, it is a legal measure that ensures adherence, avoids conflict, and leaves the stakeholders safe.
All corporations engaged in the UAE are required to adhere to the UAE corporate laws, Free Zone regulations, and Federal auditing standards in the process of dissolution.
Liquidation audits ensure that penalties for non-compliance are minimized, court orders are being met, and all trade license compliances are in place.
Our team will make sure that your company closure process is compliant and reportable in all aspects – we will make sure that you are able to close your business in an orderly and legal manner.
An open company closure audit promotes trust among shareholders, investors, and creditors. It shows that every issue of finance is conducted in an ethical manner and in line with the UAE laws, such as the allocation of assets, and the settlement of liabilities.
We preside over the whole company dissolution process including:
Our auditors conduct company closure testing and post company closure audits to verify the financial correctness. This includes:
| Voluntary Liquidation | Compulsory Liquidation | Legal Framework Governing Liquidation |
|---|---|---|
| This comes into being when the shareholders make a decision to shut down a solvent company at will. The process involves:
Adoption of reputable liquidators such as Farahat & Co. is a way of making sure that the process is easy and conforming. | Regulatory authorities or a court initiate compulsory liquidation in cases of an insolvent or regulation-breaking company. Common causes include:
An approved liquidator in Dubai is a person who is appointed for a smooth deregistration process to protect the creditors and close the process in a lawful manner. | The UAE’s liquidation process is regulated by several key laws:
Compliance with these laws guarantees that liquidation is executed legally, safeguarding both company and stakeholder interests. |
We handle all the financial matters of winding up of businesses:
Our auditors also offer complete support in their services to debt management, recovery of investments, and an internal control audit where discrepancies are identified to reduce legal liabilities.
Financial distress. Persistent losses. Absence of liquidity can trigger company closure process for your business in UAE. Some of them have been explained below.
Financial Causes
Legal or Regulatory Causes
We protect your company from penalties, court orders, and compliance breaches through verified liquidation audits.
Our structured approach ensures smooth business closure, streamlined dissolution, and optimized internal controls.
A transparent, professional liquidation process builds trust among shareholders, investors, and regulatory authorities.
In case a organization goes into liquidation, an independent auditor is supposed to supervise the process of settlement. The role an auditor plays in the company closure includes:
The accounting inspector(auditor) check the correctness and completeness of the financial position from the documents of the organization, including financial statements, ledgers, accounts, and other accounting records of a similar nature. The verification is essential to ensure that they reflect the financial transactions of the organization and have been prepared in conformity with the accounting standards.
Deregistration is appropriate in a situation where the company has ceased operation and is not planning to engage in a business in the future. Common scenarios include:
Deregistration entails informing the Federal Tax Authority (FTA), especially where it is registered under VAT and bringing to an end all business transactions.
The procedure of deregistration will be determined by the jurisdiction of a company:
The rest of the authorities are MOHRE, telecommunication providers and utility clearances by Emirates post.
Deregistration of a company is usually required with the following documents:
By hiring professional consultants such as Farahat & Co., no cases of delay and legal complications will arise because of the proper preparation of all the documentation.
Settling of all forms of debts is a very critical aspect of liquidation. This involves:
Having a sound financial management safeguards the company as well as its stakeholders in the process of liquidation.
Licensed auditors oversee the liquidation process to ensure compliance with international accounting standards (IAS/IFRS) and local regulations. Their responsibilities include:
Professional liquidation services maintain clear communication with stakeholders, control company assets, and ensure all regulatory requirements are fulfilled. This transparency protects the company’s reputation and prevents legal disputes.
Among all, a liquidation inspection report is the most important, and this is being asked by the authorities at the time of the settlement of a company. It comes in handy because it gives a very clear and transparent picture regarding the financial health of the organization at the time of liquidation. Some of the most important components of the UAE liquidation inspection report include:
Farahat & Co. is one of the leading audit firms in Dubai, engaged in all the necessary services to be conducted in the process of implementing the settlement. Our independent auditors and business professionals ensure high levels of professional handling and diligence in the financial assessment process. We prepare and submit reports for liquidations before the appropriate regulating body with a lot of diligence.
We are more than happy to provide a full company closure service solution that includes document submissions for settlement purposes, the cancellation of utility connections, obtaining clearances, the closure of bank accounts, no-liability certificates, audited financial statements, and final company closure reports. We also undertake the business settlement in Dubai, be it on the mainland, in the free zones, and offshore across the UAE.
Contact us now to find out more about our liquidation audits and how they can help you make sure you have a well-thought-out and navigated process.
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The process of company liquidation and deregistration in the UAE must be properly planned, legally organized, and transparent in terms of finances. By contracting professional services such as Farahat & Co., the process of closing the company will be smooth, efficient and legally acceptable. Licensed & trusted liquidators and expert advisors secure stakeholders, handle debts, and save reputations whether it is voluntary or compulsory liquidation, and business owners are able to shut their operations without qualms.