The financial world is filled with uncertainties and there are many internal or external factors that can lead to mishaps in business. In the financial world, some organizations might not be able to handle the test of financial strains even in a trade destination like Dubai. The organizations resort to liquidation due to various reasons like irrelevant market predictions, relocation of firms, financial shocks, or any legal obligation. Dubai has an environment for business entities, but not all are able to handle the uncertainties in the competitive world.
What Is Company Liquidation In Dubai, UAE?
The business world carries heavy risk, and the corporation needs to adapt to the dynamic financial climate. Once in a while, traders involved in the business cycle have to face different stages when business transactions come to a halt. There might come a stage when the profit levels are outweighed by the liabilities.
The entities unable to survive in such difficult situations may wind up their assets and discharge their liabilities to the creditors. In the competitive market, increasing the level of competition brings businesses to operate at their full capacity.
A business that is fragile has shown its inability to sustain itself in the competitive world. While some of the business entities with a large capital base earn goodwill and sustain in the market.
Company Liquidation Steps Involved
After the dissolving and deregistration of the assets, the license is revoked from the Dubai Trade Register, and the trade name of the company is trucked off. It happens to prevent the company from further trade.
The company’s liquidation needs to complete all the formal procedures, or the company becomes ineligible for dissolution. Below are the steps in the process:
Preparing Documents And Notice Period
The required documents are submitted and prepared to the specific division and the legislative to verify. After some initial payments, the documents are needed to be submitted to the Departments of Economic Development. The liquidation certificate will also be issued as evidence for further proof.
- Submission of Documents and Companies involved
- This verification of documents is done after getting a clearance letter from:
- Foreign Affairs and Directorate of Residency
- Liquidator and Partners NOC
- A clearance letter from the Estate
- Department of Immigration
- Bank no liability certificate
- Telecom Authority
Issuance Of Deregistration Certificate
Once the verification is done and the fees are paid, the company name is faded by the Department of Economic Development and Dubai Trade Registry for de-licensing.
Required Documents For Company Liquidation In Dubai
Below are the listed documents that are needed for the process:
- Copy of Memorandum of Association
- Power of attorney
- Photocopy of the trade license of the company
- Photocopy of the passport of all the shareholder
- Application form for the liquidation
- Photocopy of Emirates identity
- The advertisement regarding the liquidation and the notice period
The Last Step Of Liquidation In Dubai, UAE
The legislative authority will provide a review of the final payment and value of company assets after the submission of all the documents. ebs has the best liquidators who can help you to complete the liquidation process appropriately and efficiently.
How ebs Can Help You?
The team at ebs has the excellence to do common tasks in a great way. In-house Trade Cancellation services are available at ebs. We provide many services to various organizations through a wide network and finalizing their exit strategy.
Our accounting and bookkeeping services help businesses in the legitimate closure of their operations and make them start a new business. ebs is accessible to help you find out about accounting and bookkeeping in the UAE. ebs likewise offer services, such as accounting and bookkeeping services, VAT services, Auditing, Due Diligence audit services, and many more.
Feel free to contact us with any additional inquiries or requests for accounting services. A free discussion will be given to you by our specialists, who will answer your request immediately.