United Arab Emirates company clearing service
Liquidating a company is a tedious task. Liquidation of a company is more than just closing the company. There are many factors to consider when doing so. You need to notify the government authorities, have your business license revoked, you need to distribute your assets, and the list continues. The legal process involved in Company Liquidation Services In Dubai is one of the most cumbersome.
What is company liquidation?
Liquidation is a legal bankruptcy process that terminates a company’s operations. When a company goes into liquidation, its assets are sold to pay off its liabilities, liabilities, and obligations. Often referred to as “dissolution,” the company’s license is revoked by liquidation, its name is removed from the commercial register, and the company is considered dissolved.
Clearing can occur for several reasons, but the most important are:
Expiration of license/period stipulated in the articles of incorporation of the company or achievement of the purpose of establishing the company
Loss of all or most of company assets
Shareholders agree that the life of the company can be terminated, for example after exceeding a certain majority.
If the company is unable to repay its debt, the authorities can voluntarily or forcibly resolve the debt. United Arab Emirates law provides for two methods of liquidation of a company.
Voluntary liquidation
A company’s voluntary liquidation is due to a variety of reasons, including the expiration of certain deadlines, the completion of a company’s mission, the abandonment of goals, mergers with other companies, ongoing business retreats, and the inability to meet company obligations. Occurs.
Compulsory or legal liquidation
Compulsory liquidation of a company is a necessary measure when the company commits a serious illegal act or cannot continue its business activities. It is also valid if the customer complains to a government agency to reclaim the property. The local government then took steps to dissolve the company.
Who is the liquidator?
The person in charge of the liquidation procedure is called the liquidator. The court or the shareholders of the entity appoint a liquidator, which also depends on the type of liquidation. The liquidator will issue a formal acceptance letter shortly after being appointed. After performing all the duties necessary to carry out the liquidation process, they write a statement of the matter and a report of the liquidator.
License cancellation
Canceling a license is one of the main steps in the clearing process and the procedure depends on the type of company. Institutions and sole proprietors must apply for cancellation through DED. You also need to get approval from the following departments —
Ministry of Human Resources, Malaysia
Immigration Bureau
Related water and electrical authorities
Rental unit
What are the seven steps to liquidating a limited liability company in Dubai, United Arab Emirates?
Step 1: The first step in liquidating a company is to submit a notice to the Dubai Development Authority (DDA) stating the reason for the liquidation.
Step 2: The board’s decision to cancel the company’s registration must be proved to the DDA authorities by the owner.
Step 3: Promote the company’s liquidation in Arabic and English in the newspaper.
Step 4: You need to submit the original business license, company registration and stock certificate, leasing agreement, and original economic development department license to DDA.
Step 5: If the creditor or customer is making a monetary claim to the company, DED will notify the creditor or customer to wait 45 days in advance. It also cancels all employee and partner visas and obtains a NOC from the Ministry of Labor.
Step 6: After the notification period has expired, a Dubai accountant will need to prepare a clearing report.
Step 7: The completed report must be sent to the relevant authorities for evaluation, along with all supporting evidence and associated cancellation fees, and if approved, a “License Cancellation Certificate” must be submitted. I have.
What are the six steps involved in liquidating a UAE Free Zone company?
Almost every free zone has its own liquidation process. The most common and standard ways to unregister a free zone company in the United Arab Emirates are:
Step 1: Minutes of the Board of Directors to declare the company’s liquidation, appoint a regulated liquidator, and send a notice to the Dubai Development Authority (DDA) explaining why the company is liquidating.
UAE Business Settlement Service
Liquidating a company is a tedious task. Liquidating a company is worth more than closing it. In doing so, several factors must be taken into account. You need to notify government authorities, revoke your business license, distribute your assets, and the list goes on. The legal process of liquidating a company is one of the most complicated.
What is company liquidation?
Liquidation is a legal bankruptcy process that ends a company’s business. When a company goes into liquidation, its assets are sold to pay off its liabilities, obligations and liabilities. The company’s license, often referred to as a “dissolution”, is revoked by liquidation, its name is deleted from the company’s registry, and the company is deemed to be defunct.
Compensation can occur for several reasons, the most important of which are:
Expiry/duration of the license specified in the company’s founding contract or in the implementation of the company’s founding object
Loss of all company assets
Fusion
Shareholders agree that a company’s life can end, for example, after obtaining a certain majority.
If the company cannot repay the debt, the authorities can settle the debt voluntarily or by force. UAE law provides for two methods of liquidating a company.
voluntary liquidation
Voluntary liquidation of a company can be tracked for a variety of reasons, including expiration of certain deadlines, fulfilling the company’s mission, abandoning goals, merging with other companies, withdrawing ongoing business, and inability to fulfill obligations to the company. . Arriving.
Compulsory or legal liquidation
Liquidation of the company is necessary if the company commits a serious illegal act or is unable to continue its business activities. It is also helpful if the client asks a government agency to take over the property. The municipality then took steps to dissolve the company.
Who is the liquidator?
The person responsible for the settlement process is called the liquidator. The shareholders of the court or organization appoint a liquidator, which also depends on the type of liquidation. The liquidator issues an official letter of acceptance shortly after being appointed. After carrying out all the functions necessary to conduct the liquidation process, the liquidator of the process prepared an opinion and a report.
License cancellation
Revoking a license is one of the main steps in the compensation process, and the procedure depends on the type of company. Institutions and individual owners must request cancellation through DED. You must also obtain approval from the following departments:
Ministry of Human Resources, Malaysia
Immigration Service
Related water and electricity authorities
rental unit
What are the 7 steps to liquidating a limited company in Dubai, UAE?
Step 1: The first step in closing a business is to send a notice to the Dubai Development Authority (DDA) stating the reason for liquidation.
Step 2: The owner must prove the board’s decision to exclude the company from the registry to the DDA authorities.
Step 3: Support the company liquidation in Arabic and English in the newspaper.
Step 4: You must submit the original business license, company registration and share statement, lease agreement, and the original economic development department license to the DDA.
Step 5: If the creditor or customer files a monetary claim with the company, DED will notify the creditor or customer to wait 45 days. You will also cancel all employee and partner visas and obtain a NOC from the Ministry of Labor.
Step 6: After the notice period has expired, the Dubai accountant must prepare an offset report.
Step 7: The completed report, along with all supporting evidence and related cancellation fees, must be sent to the relevant authorities for review and, if approved, a “Certificate of License Revocation” must be submitted. I have.
What are the six steps involved in liquidating a UAE-free zone company?
Almost all free zones have their own clearing process. The most common and usual ways of unregistering free zone companies in the UAE are:
Step 1: The minutes of the board declare the liquidation of the company, appoint a liquidator, and send a notification to the Dubai Development Authority (DDA) stating the reason for the liquidation of the company.
