UAE is one of the promising business destinations in the world and has millions of flourishing enterprise forms. There is a pool of opportunities for business trends in UAE. However, once in a while things do not pan out the way you thought and commercial enterprise may fail to exist in the marketplace.
When such unexpected instances and economic problems arise, one needs to move underneath the company liquidation. Business liquidation is a method by which companies wind up their commercial enterprise entities. They sell their assets so that they can clean their debts, liabilities duties. The amount gathered after selling the property is distributed to creditors and stakeholders.
Regardless of what sort of commercial enterprise you run within the UAE, you need to cancel business licence and all associated performance scenarios that may lead to company liquidation could be voluntary liquidation company owners apply bankruptcy situation, liabilities may be more than assets financially distressed company, default of payment.
Mandatory liquidation mandated by the court of law initiated by creditors or any other third party litigation against company by creditors and judgement by court of law checklist before liquidating your company in the UAE, paying off utility bills, telecommunication bills and other business liabilities. closure of bank account deregistration from value added tax or excise tax. Preparing the financial audit report liquidation report cancellation all the visas under the licence and the cancellation of business licence.
The process of liquidation involves two stages and several steps. Let’s check out the stage one. All the existing employees should be paid off entirely, appointing a liquidator and attesting the resolution of director board for designation regarding dissolution from public notary payment of the fees and the Department of Economic Development to issue company liquidation certificate.
Public notice into local Arabic newspaper about the liquidation of the company and waiting for 45 days so that any person can raise claims in the period presenting a copy of newspaper advertisement and final audit report the department of economic development stage two
confirmation of no claims from all the partners and liquidity, Visa cancellation of partners and getting a letter of clearance from the Ministry of Labour and immigration receiving clearance from Department of protective system regarding no violence records and receiving cancellation certificate from di d by paying the required fees.
Lastly, presenting the cancellation certificate request letter and original immigration establishment guard to the immigration head office, liquidating a company inside the UAE can encounter many challenges during the whole procedure. And it is also a wise step process where time is consumed regularly. Am audit can guide you and support you in completing all the legal formalities and procedures to liquidate your company in the UAE. As a registered tax agent support and guidance will be provided to deregister from VAT or excise tax in UAE.
As we are an approved auditors in the UAE we will extend our support to prepare the final audit report and plan a cost effective company liquidation by avoiding unnecessary expenses.