Liquidation of the company in UAE is referred to as winding up a UAE firm, which is the process of closing down a Dubai, UAE company. The business will be dissolved, and all of its operations will be suspended.
Liquidation is how a Limited Liability Company, Sole Establishment, and Free Zone Company closes its operation legally.
A company based in the United Arab Emirates can be dissolved voluntarily or when it can no longer pay its debts. There are two types of liquidation procedures: voluntary liquidation and compulsory liquidation.
Advantages of Liquidation:
- It happens to the company, not the individuals within the company.
- Management of the liquidation is passed onto the appointed liquidator, relieving some of the stress that a director may incur due to the process.
- Once the company is liquidated, creditors can no longer pursue directors for payment.
- Unsecured debts are written off.
- As soon as the company closes, all legal action against the company is halted.
Company liquidation requires a qualified approach with strict adherence to formal procedures. Only a complete understanding of the existing legislation can help you meet the liquidation requirements.
FAQ about Liquidation of the company in UAE
How to dissolve a company in UAE?
The UAE attorney public must first approve the company’s decision requesting its dissolution before it can be attested to. This is essential because it verifies the legitimacy of the resolution document and confirms that all shareholders support the decision to liquidate the company.
Who are the best liquidators in Dubai for license cancellation?
The top company liquidation services in Dubai is Al Hafeez Global Advocates & Legal Consultants, so you can go forward with the cancellation of your license and any other liquidation proceedings in a timely and proper manner. Therefore, get in contact with our company to simplify the situation for you.
What happens during the liquidation process?
Companies in the process of being liquidated are typically in a highly unstable position and are not prepared to manage an additional load on top of the stress of the Liquidation of the company in UAE.