Liquidation of the company in Dubai is an overwhelming task. It requires a systematic and qualified approach to accomplish it. There is a need for a better and full-fledged understanding of the business, its operations, legislation, and the procedure for Company liquidation. With a coherent and cohesive approach, the Company liquidation can take place more efficiently. Lawyers having expertise and excellence in such topics are known as Business Lawyers. UAE national lawyers in Dubai,
Nonetheless, in many cases, the liquidation of a company in Dubai can be done voluntarily and involuntarily. In involuntarily it is compulsory to liquidate the company’s operation. There are proper procedures and regulations that must be followed when liquidating a company in Dubai. The UAE’s applicable laws and regulations are applied during the process of liquidation.
An adequate and uniform process must be followed. Procedure must be followed before commencing the liquidation of a company in Dubai. There are various crucial factors that must be considered before beginning with the Company’s liquidation. Some of the considerable and critical factors to taken into account are as follows:
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Before commencing the liquidation of a company in Dubai it is necessary to settle all the outstanding dues. The dues must be settled down according to the government priority list.
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Furthermore, all the bank accounts must be shut down. Besides, it is essential to prepare the final Audit Report. The audit report must be prepared with the assistance of a professional and well-equipped auditing firm in Dubai. Company liquidators play a key role here.
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Once done, the procedure of liquidation is initiated. Nevertheless, the closure of a company in Dubai can be initiated due to different factors. Some of the common factors are discussed below:
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The company liquidates if all or majority of the shareholders decide to close the company. Secondly, in case, the company receives a court ruling to dissolve the company. As per the court decision, it is ordered by the court to liquidate the company shortly.
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For instance, Voluntary liquidation begins once the directors, shareholders, or owners of the company usually decide to dissolve the company.
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The shareholders arrange a detailed meeting and decide the fate of the company. In the meeting session, resolution is passed for winding up the operational shortly hereafter.
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On the contrary, compulsory or involuntary liquidation takes place after the court orders. As per law, creditors or any stakeholders can request for liquidation.
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The court appoints the person who will look into the matter of Company Liquidation. If dissolution is confirmed, the bank accounts will be frozen and the investigations will start. The assigned person by the Dubai courts will also look for the reasons for the insolvency.
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The concerned authorities of Dubai will investigate to know about the director’s conduct and whereabouts in the company. Besides, they will investigate the misconduct on behalf of the directors resulting in the Company’s liquidation.
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Certain steps must be followed to complete the liquidation process in Dubai. Firstly, it will begin by preparing the notarized minutes of the General Assembly Meeting. It is a confirmation that the company is dissolving. It also further leads to the appointment of a company liquidator.
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Nonetheless, the relevant authorities in Dubai will issue a certificate of liquidation of a company in Dubai. Following this, the notice of the liquidation is published in any local newspaper publications in Dubai.
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Additionally, the confirmation by the Company liquidator will be presented. All the partners will give their consent and issue no objection. In this way, the clearance letter is issued from the concerned authorities of Dubai.
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Furthermore, now it is time to submit a copy of the Director Board resolution along with a copy of the company’s liquidation certificate to the relevant authorities. Ultimately, the final stage of company liquidation is reached.
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The liquidation procedure begins once the above process is done. For the procedure of liquidation of a company in Dubai, the following steps should be undertaken:
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Furthermore, the dissolution of the company is officially announced. It is announced by issuing a statement signed by the company’s liquidator who is in charge of the liquidation.
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There are a bunch of law firms in Dubai that have experienced and eclectic company liquidators in the country. They can guide the directors, owners, and shareholders regarding the liquidation of a company in Dubai.
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Company liquidators have the expertise and skills that will help in investigating the main causes of company liquidation. Further, they will ensure a smooth and swift process of dissolution.
