Company Liquidation in Dubai is a procedure conducted to legally close down the company. Under the liquidation process for an LLC or even a Free Zone company the operations of closure need to be done in an authorised manner. Further the assets and other properties under the company’s name is divided among the shareholders, the directors or the creditors mutually.
Liquidation of a company in Dubai or anywhere in UAE becomes inevitable. It is when an organisation does not have liquid funds to hold on the regular transactions. Moreover, creditors are not paid or the company commits some serious offence – under which a company is considered for liquidation. Liquidation could either be compulsory (sometimes noted as a creditors’ liquidation) or voluntary (sometimes noted as a shareholders’ liquidation, though some voluntary liquidations are controlled by the creditors).
A business liquidation also includes compensation for employees, their visa and work permit cancellation. During this process the owner of the business requires to coordinate with the Department of Naturalization and Residency and the Ministry of Labour. There are various welfare and compulsions the UAE government imposes during the termination of the employees.
Apart from the employees the owner also is obligated to deal with getting subscriptions annulled, accounts with the DEWA and Etisalat or Du to be cancelled, closure dealings with the bank, retrieving your deposits and more. Moreover, the lease contract for the office or warehouse leases has to be honoured, cancellation of licenses and various other legal documents are done with proper application process which requires approvals from government and federal authorities.
So, to liquidate the company in Dubai and avoid being penalised by the judicial authorities. This is not only a legal requisite but also by liquidating you always have the possibility of reinstating your company in the future.
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