Dubai and Abu Dhabi have emerged as the leading economies in the middles east region, which made UAE a regional business Hub. There are certain limitations or issues which might influence shareholders to switch companies.
What is Liquidation of a company?
Somewhere else like some firms might face tough financial conditions. This might lead toward the initiate the company liquidation proceedings. This operation is dependent on a company’s financial situation at the moment of the initiation of the process. In case if the owners try to shut down his business operation in the Emirate, the Company liquidation services in Dubai may also refer to trade license cancellation.
Types of company liquidation
A Dubai based company can be dissolved on voluntarily basis when it became no longer able to pay its debts. As per Company Law, there are two types of company Liquidation Processes in Dubai:
- voluntary liquidation
- Compulsory liquidation
Company formation consultants can guide you in detail about the liquidation of the company as per Commercial Law.
In case of the business is no more able to fulfill its debt, creditors might make a decision to file a petition for winding up the order.
Failure to pay the debt before court date might result in the freezing of accounts. Any asset will be liquidated and distributed between creditors.
In case if business under debt cannot manage to pay its debt then liquidator in UAE can be hired to shut the business. The liquidator will take the control of the whole business in order to conduct liquidation in a most suitable way. This is considered as the most favorable way to sort out the liquidation.
Company Liquidation procedure in Dubai
Both Voluntary or compulsory company liquidation can be processed in the form of the request by shareholders or the creditors in Dubai. The shareholders might hold a meeting to pass the resolution for the launching the procedure in case of voluntary dissolution. Liquidator might be inducted in the same meeting in case of compulsory liquidation.
Following documents are needed to be submitted by company’s legal representatives with Dubai Trade register.
- The document addressing the liquidation and hiring of the liquidator.
- Attestation of liquidation and a certified copy having signatures of the firm’s directors.
- Trade license and certificate of registration of a company.
- Liquidator’s license copies along with a letter mentioning the approval of the liquidation.
Cancellation of Trade license in Dubai
After starting of winding up a process, the company license will be revoked and business must be deleted from the Dubai Trade Register. Documents required for this process are as under: –
- Account relevant to the asset which’s liquidating is in a process by the approval of shareholders or by the liquidator.
- In order to cancel the license issued by the Ministry of Labor, No Objection certificate addressing the approval for the cancellation will be required.
- Nomination of a liquidator and the statement on the company dissolution.
- In case if the foreigner were sponsored by the UAE-national a visa revocation should be submitted.