The liquidation process in Dubai, Abu Dhabi, UAE involves the distribution and selling of company assets among its creditors and shareholders in order to repay liabilities and other obligations. When a company is unable to execute/run its routine operations due to weak financial and cash position, it leads to company liquidation and dissolution of business functions. Liquidation services providers in Dubai, Abu Dhabi, UAE can manage different types of company liquidation encompassing:
- Complete company liquidation
- Partial business dissolution
- Voluntary liquidation
- Creditors/government-induced liquidation
However, the process of company liquidation in Dubai, UAE is very complicated and requires the assistance of professional liquidation service provider firms. A company needs to choose the most suitable firm to carry out and fulfill its liquidation requirements in accordance with legal standards and procedures. Following is the list of the top 5 liquidation service providers in Dubai, Abu Dhabi, UAE:
Aviaan Accounting: Leading accounting and auditing firm offers in-house trade license cancellation services with the help of a trained and expert professional team. Committed to satisfying clients’ needs and legal obligations while delivering liquidation service through efficient planning and execution.
Dawn Consultancy: History of providing liquidation services in Dubai, Abu Dhabi, UAE for the free zone, offshore, and mainland companies. Well-versed with the regulatory requirements associated with the liquidation process along with the ability to prepare liquidation-related documents and certificates.
ARC Associates: Equipped with extensive experience in providing liquidation services across UAE through an approved and certified team of accountants and auditors. Dedicated to developing an understanding of client firm regarding each step of liquidation process while carrying out deregistration of company trade license.
Sovereign Dubai: Offers complete or part of the liquidation process services to Dubai, Abu Dhabi, UAE entities depending on the requirements and financial situation of the company. Demonstrated success in smoothly dissolving and selling company assets and using the proceeds to settle debts and pay expenses.
MBK Auditing: UAE-based organization working diligently for the benefit of the client while managing the liquidation of its assets. Its services include creditors voluntary liquidation (CVL), compulsory liquidation and members’ voluntary liquidation (MVL) complemented with an experienced and knowledgeable team of professionals.
How do Liquidation Services Providers in Dubai, Abu Dhabi, Sharjah, UAE operate?
Liquidation is a long, cumbersome, and difficult process for companies to handle by themselves, since there are several legal and regulatory complications involved, it is advised to hire a professional liquidation services provider in Dubai, Abu Dhabi, UAE. As it is a known fact that once the company plan to close down the business, the government entities and required authorities should be notified of the same, to avoid any accumulated fines and penalties
Liquidation services providers’ operation starts with the primary step of canceling the license by following the set protocol based on the nature of the business and industry. In the case of establishments and sole proprietorships, business entities in UAE will have to apply for cancellation through DED. In addition to that, clearances need to be acquired from the below-mentioned departments:
- Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- The relevant water and electricity authority
- The leasing entity
However, for companies with shares, the process of winding up involves liquidating the shares, collecting the debts, and paying the creditors before finalizing with the Department of Economic Development. Discharging all your liabilities towards creditors and partners is essential in the case of shareholding companies.
The liquidation process in Dubai, Abu Dhabi, UAE involves various steps including:
- Publishing the notice of liquidation in 2 local newspapers
- Submitting declaration letter to DED indicating no objection
Canceling the foreign partners’ visas sponsored by the company and many more.