COMPANY LIQUIDATION - LICENSE CANCELLATION IN DUBAI
Company liquidation is a hectic task. Liquidation is also known as “winding-up or dissolution of a business”, although technically dissolution corresponds to the final phase of the liquidation process. A company’s liquidation is not just about closing it down; there are many factors to consider, such as the cancellation of its name, employee payments, cancellation of tax registrations, and other related legal requirements.
The most tedious task in the liquidation of a company is going through the legal formalities. At B4B, we are experts in all legal and regulatory issues concerning the liquidation of a company and have executed more than hundreds of company terminations.
TYPES OF LIQUIDATION
When a firm can no longer pay its debts, it might be dissolved either voluntarily or forcibly by authorities. There are two types of company liquidation methods under UAE law:
- Voluntary Liquidation
In case of voluntary liquidation, the shareholders of a company will decide to wind up the company. There are various reasons for a corporation to voluntarily wind up, including the expiration of a defined period, the achievement of the firm’s mission, abandonment of the goals, merging with another firm, and the company’s failure to afford its obligations.
- Compulsory Liquidation
Compulsory liquidation is a type of company liquidation that is put forward by court order. It also takes effect when customers submit complaints to government agencies to recover their assets. The local government then takes steps to dissolve the enterprise forcibly. Here, the assets of the company are distributed to the creditors and contributors based on the priority of claims.
COMPANY LIQUIDATION PROCESS
When the company’s board has decided to proceed with liquidation, a special meeting is held to outline the details of the liquidation procedure. A liquidator is appointed at this time and any requests from the company’s creditors will be fulfilled.
First of all, the company must present the official documents that verify that the decision to liquidate the company has been taken. The document will also include the name of the liquidator. It is also necessary to provide the original registration certificate as well as the credentials of the liquidator.
These documents must be notarized. After completing the first steps of the liquidation, the company must cancel any special permits or licenses it may have obtained to engage in various economic activities in Dubai. Original documents from the parent company will also be required for branches in Dubai.
Documents required for Company Liquidation in Dubai
It is necessary to submit a number of documents for the liquidation of a company in Dubai. A B4B Company Liquidation Service in Dubai can assist you in obtaining most of the documents required for winding down a company.
Documents Required for Free Zone Company Liquidation
- Board resolution for liquidating the corporate and appointment of a liquidator
- Immigration and labor department’s clearance from free zone authority (FZA)
- All Visas ought to be canceled and cleared by Immigration and labor department.
- Submission of Liquidation letter
- Clearance Certificate from free zone authority
- Clearance Certificate (NOC) from Business Unite
- CLD Clearance Certificate from Government section
- Original free zone company license
- All fees and charges need to be settled with the free zone
Documents Required for LLC Company Liquidation
- Notarized Board Resolution to liquidate LLC Company and appointment of liquidators
- A letter from the appointed liquidator who accepts his appointment as a company liquidator
- Registration & Licensing Application (Form No.BR/1) from the Economic department of the Emirates
- Company’s Original License and legal documents
- Release letter from the property owner
- NOC letters from the ministry of labor & immigration and RTA
- No liability and Bank account closure certificate
- Resolutions by shareholders to dissolve the businesses from the Public Notary
- Letter of Company Dissolution by the Economic Development Department (DED)
How can B4B Consultants help in Company liquidation in UAE?
For over a decade, B4B Consultants has offered company liquidation services. As a leading liquidator in Dubai, we ensure to assist you throughout the liquidation process. The liquidation process of a company is mostly legal formalities and without the support of a liquidation service provider, it could be tiring and more time-consuming. Our team of company liquidation experts delivers professional guidelines in the entire process. We can assist you as a liquidator and as a liquidation service provider.
We will help you obtain the liquidation report as soon as possible by canceling licenses and seeking approval from various government authorities. Our company liquidation services are available across the country, and we strive to make things easier for our clients.