Liquidation is the method by which a LLC company (or a part of a company), sole establishment, Dubai free zone company or institution closes its operation and therefore the assets and property of the corporate or institution is distributed to creditors and shareholders (owners) of the UAE registered Company.
Types of Liquidation
Company liquidation may be of the following two types:
1. Voluntary Liquidation
In case of voluntary liquidation, the shareholders of a company will decide to wind up the company as they have no money to pay for creditors. In this type of liquidation, priority is given to the creditors.
2. Compulsory Liquidation
Compulsory liquidation is a type of company liquidation which is put forward by court order. Here, the assets of the company are distributed to the creditors and contributors based on the priority of claims.
Once you plan to close your business, the government entities should be notified of the same, so as to avoid any accumulated fines and penalties.
The liquidation of company in Dubai, UAE becomes inevitable when a corporation don’t have liquid funds to hold on day to day transaction of the company, creditors aren’t being paid or company commits some serious offense, and a regulatory authority or agency in UAE of Free Zone Authority accountable for the relevant sector files a suit for the effecting the operations of the corporate.
RVG services will include the following:
- Initiating the winding up process • Publishing the liquidation notice.
- Preparation of legal documents
• Preparation of Company board resolutions
• Liquidators appointment acceptance
• application and submission
• Arrange clearance letter from DEWA
• Arrange clearance letter from Etisalat
• Arrange clearance letter from Municipality
• Arrange clearance letter from Custom
• Bank account closure and Bank No liability Certificate
• Audit for the financial statements for liquidation of company • Overview of Collection & Distribution of Company Assets
• No Liability certificate
• Employees visa cancellation
• Labour card cancellation and clearance certificates
• Immigration card cancellation and clearance certificate
• Liquidation report preparation and submission
• Final cancellation letter
• Partner Visa Cancellation
Liquidation of company is a very time consuming process in UAE. At RVG, we help our clients in following the procedures to wind up a company in UAE. RVG Experts will help you in collecting all legal documents and you will not need to worry about any procedural compliance.
In short, only you have to appoint us as your company liquidator and our experts will give you license cancellation certificate.