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Company liquidation is an important process that finalizes a business’s activity, and in Dubai, it involves a complicated legal process. Make sure your company liquidation is fast and stress-free by working with us.
Company liquidation, also known as dissolution or de-registration, is the closure of all a business’s operations. Liquidation involves paying off all liabilities to creditors and distributing any remaining assets to the company’s owner(s) and shareholders (if applicable).
Since company liquidation in Dubai can be complicated, it’s important to work with experts to ensure you minimize any possible financial losses and legal liabilities.
There are two types of company liquidation in the UAE; voluntary liquidation and compulsory liquidation.
Voluntary Liquidation
Voluntary liquidation is what it sounds like – it’s when the owners and stakeholders in the company agree to voluntarily bring the company’s operations to an end. This may be because the project was for a fixed period, the business is failing financially, the business owners want to go in different directions, or the company is merging with another.
Compulsory Liquidation
Compulsory liquidation is where a company is forced into liquidation due to external legal action. In most cases, this is due to the company breaking the law or having so many debts that it cannot be permitted to continue trading.
To liquidate a company in the UAE, regardless of whether it’s an LLC or a Free Zone Company (FZE), you need to designate a company to perform the liquidation for you (often called a liquidator firm). The process then differs a little – read on to learn how an LLC and how an FZE is liquidated.
Our experts can help you determine how best to go about your company’s liquidation, ensuring you come out in the best possible standing. To speak to our experts about your company’s liquidation, please don’t hesitate to contact us.