company liquidation service
What is company liquidation?
What is company liquidation?
Liquidating a company, also known as the winding-up of a company, means that a company must close down its operations. It is a legal insolvency procedure to terminate the functionality of a business and its existence. When a company decides to liquidate, its assets are sold to pay off liabilities, debts, and other commitments.
Company Liquidation in the UAE
In the UAE, company liquidation is an intensive and lengthy process concerning several practices, from the initiation of the de-registration procedure, and efficiently completing forms to the agreement of government authorities.
Before closing a company, the foremost step is to assess its financial status. A company’s book of accounts must be reviewed and audited by professional Chartered Accountants. All outstanding assets, claims, and payments must be settled along with a debt recovery plan. A liquidation report must be prepared under the guidance of a registered liquidator.
Different types of
Liquidation
A company can decide to liquidate either through voluntary liquidation or for compulsory reasons.
Voluntary Liquidation:
A self-proclaimed liquidation and de-registration of the company. Also referred to as shareholder’s liquidation, a company’s owners, directors, and shareholders decide that the continuation of the business is no longer necessitated.
Compulsory Liquidation:
A mandatory liquidation of the company when debts are not cleared on time hence, the investors decide to request the court for de-registration to recover their capital.
Liquidation of a Limited Liability Company (LLC) in the UAE
- Prepare a Board of Resolution, signed and attested by the Board of Directors.
- You must legally appoint an authorized company liquidator and get an Acceptance Letter from the liquidator.
- Board of Resolution must be attested by the Notary
- Clearance certificate from the Ministry of Labor and Immigration
- All bank accounts must be closed, and a Bank Account Closure Certificate should be obtained
- All financial liabilities must be settled, such as creditor and supplier payments, employee settlement, etc.
- Newspaper advertisement about the company’s liquidation
- Auditors will conduct a financial audit and provide a Non-Liability Certificate. The final company liquidation certificate will be issued by the DED and the business name will be removed from the commercial register.
Company Liquidation in Freezones in the UAE
The company liquidation procedures vary significantly in the Freezones. The basic requirements are as follows:
- Issue a Board Resolution to liquidate the company
- Appoint an authorized company liquidator to conduct the closing procedures (a liquidator is not required in case of a sole establishment)
- Initiate visa cancellations for all shareholders and employees.
- Letter of Liquidation must be submitted to the Regulatory Authority for closure of financial statements.
- A Clearance Certificate must be obtained from the Regulatory Authority.
- All the fees must be paid and settled, before receiving the final copy of the cancellation certificate.
What are the documents required for Company Liquidation?
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Trade License Copy
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Memorandum of Association
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Power of Attorney (POA) if any
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Attested Board Resolution or Power of Attorney
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Bank account closure certificate
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Immigration and labor clearance
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Lease clearance from the landlord
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Passport copies and Emirates IDs of Shareholders or Managers
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Management Representation for Non-Liability
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Copies of other relevant documents
How can INCORP guide you?
Over the years, INCORP has been providing refined company liquidation services to limited liability companies, Freezone companies, and offshore companies in the UAE. Our Consultants and Specialists will help you with the entire company closure procedure, in the most cost-effective ways. Get in touch with our team of experts for the primary consultation on how to proceed with the most applicable practices.
Our Services
MAINLAND COMPANY SETUP
Setting up your office in Dubai Mainland promises thriving investment opportunities. We are specifically offering you the most sought-after business environment, to actively reach the multicultural audience and expand to the local UAE market.
FREEZONE COMPANY SETUP
A modern economic boost to both aspiring entrepreneurs and established multinational corporations. With world-class amenities and commercial benefits, we are here to assist new clients set up their dream companies in their aspired Freezones.
OFF SHORE COMPANY SETUP
The best option for safeguarding your assets in a tax-exempted environment. With tremendous opportunities for international trade, the Offshores offer hassle-free government regulations and a robust business financing infrastructure.
OFF SHORE COMPANY SETUP
The best option for safeguarding your assets in a tax-exempted environment. With tremendous opportunities for international trade, the Offshores offer hassle-free government regulations and a robust business financing infrastructure.
BUSINESS SETUP ADVISORY
Indulge in the most effortless and non-complex procedure of closing your company with incorp. We manage all the legal formalities and make the process easier for you with our proficiency.
COMPANY LIQUIDATION
Indulge in the most effortless and non-complex procedure of closing your company with incorp. We manage all the legal formalities and make the process easier for you with our proficiency.
COMPANY LIQUIDATION
Indulge in the most effortless and non-complex procedure of closing your company with incorp. We manage all the legal formalities and make the process easier for you with our proficiency.
tax residency certifictae (trc)
Safeguard your tax status in the UAE with the aid of a TRC. Collaborate with Incorp to avail the numerous lucrative advantages of how a TRC can help to avoid being doubly taxed in different nations.
PRO SERVICES
A successful business can only operate efficiently with professional PRO services. We provide unconstrained and versatile services for the smooth initiation and transparency of your business plan.
MAINLAND COMPANY SETUP
Setting up your office in Dubai Mainland promises thriving investment opportunities. We are specifically offering you the most sought-after business environment, to actively reach the multicultural audience and expand to the local UAE market.
FREEZONE COMPANY SETUP
A modern economic boost to both aspiring entrepreneurs and established multinational corporations. With world-class amenities and commercial benefits, we are here to assist new clients set up their dream companies in their aspired Freezones.
OFF SHORE COMPANY SETUP
The best option for safeguarding your assets in a tax-exempted environment. With tremendous opportunities for international trade, the Offshores offer hassle-free government regulations and a robust business financing infrastructure.
BUSINESS SETUP ADVISORY
Indulge in the most effortless and non-complex procedure of closing your company with incorp. We manage all the legal formalities and make the process easier for you with our proficiency.
COMPANY LIQUIDATION
Indulge in the most effortless and non-complex procedure of closing your company with incorp. We manage all the legal formalities and make the process easier for you with our proficiency.
tax residency certifictae (trc)
Safeguard your tax status in the UAE with the aid of a TRC. Collaborate with Incorp to avail the numerous lucrative advantages of how a TRC can help to avoid being doubly taxed in different nations.
PRO SERVICES
A successful business can only operate efficiently with professional PRO services. We provide unconstrained and versatile services for the smooth initiation and transparency of your business plan.