Company Liquidation in Dubai, UAE is a method of terminating a business. This should be carried out as begun by a company’s shareholders or creditors by the passage of a lawful shareholder’s resolution. When a corporation’s financial system fails and the firm is in financial hardship and/or becomes insolvent, unable to pay its debts, the company may apply to the court for the liquidation of the company. In conformity with local rules and regulations, NUF offers Company Liquidation in Dubai, UAE. Our expert staff can accompany the owners through the whole business liquidation procedure, from the initial Liquidation Certificate to the final Liquidation Certificate.
NUF helps the owners in completing their legal duties during the company liquidation process by advising on practical procedures required for the liquidation. We can help with the creation of a Statement of Affairs and supporting documentation for presentation to creditors and authorities.
There are two forms of firm liquidation: voluntary/compulsory liquidation and winding up/court-ordered liquidation in Dubai, UAE.
1. Compulsory Voluntary Liquidation in Dubai, UAE:
Companies can be dissolved by voluntary liquidation. This should be carried out as begun by a company’s shareholders or creditors by the passage of a lawful shareholder’s resolution. An official liquidator must be chosen at the shareholder meeting. This type of liquidation is also known as obligatory liquidation. As a result, the equity holder’s resolution copy (statutory declaration), a statement appointing liquidator and calling for liquidation, certified copies of the company’s directors and liquidator attesting liquidation, company’s registration certificate, trade license, and liquidator’s license with letter of acceptance must be submitted to the Dubai Trade Register/ Dubai Economic Dept.
Employees have been sacked and are being regarded as principal creditors; any outstanding debts may be paid off.
2. The Court’s Decision:
When a corporation’s financial system fails and the firm is in financial hardship and/or becomes insolvent, unable to pay its debts, the company may apply to the court for the liquidation of the company in Dubai, UAE. This is often launched by the business’s creditor, but it may also be initiated at the request of a company director or shareholder with a petition to shut the firm.
The assets of a firm are realized and distributed to the company’s creditors under this court-based procedure. This has the effect of a compulsory winding-up, which is carried out by the law, particularly when the firm is unable to fulfill its liabilities/debts. The assets and liabilities of the corporation are extensively examined in this sort of liquidation. Nonetheless, under the rules of the legislation, there can also be compelled winding up. Under this arrangement, the corporation may strive to pay off its obligations and reach an agreement with its creditors.
Employees are expelled, and their end-of-service benefits are sought to be paid off.
What about the Board of Directors?
They suspend operations and investigations except to provide clarification on any previous or existing condition of affairs and to aid in dissolution.
What happens when you file a petition with the court?
A liquidator is appointed by the court once an application for the liquidation of the company is filed with the court and an order is issued by the court. The firm will be taken over by the liquidator. The liquidator manages and sells the company’s assets to pay off the company’s obligations. The firm’s name will be stricken from the register of companies following the sale of assets, and the company will be deemed to have been wound up.
We would be ready to procure you with error-free, precise, and up-to-date accounting at any time of day. If your firm is in any of these situations, please call us at 04-325 8361 for more information, or visit the NUFCA website shortly to schedule a free consultation with us!