The procedure involves extensive paperwork and agreements with the parties involved and other government bodies. De-registration is a critical component of the company liquidation procedure. Additional terms for corporate liquidation include cancellation of the company, dissolution of the corporation, and so on. Company liquidation in the UAE may be more convenient and less stressful if handled professionally and diligently.

Company Liquidation Types 

Liquidation may be:

1. Voluntary Liquidation:
   In a voluntary liquidation, the shareholders of a corporation opt to wind up the company because they do not have enough money to pay its creditors. Priority is given to creditors in this sort of liquidation.
2. Compulsory Liquidation
   Compulsory liquidation is a sort of corporate liquidation that a court orders. The company’s assets are allocated among creditors and donors depending on the priority of claims.

Avoid Legal Headaches By Following The Correct Liquidation Procedure

This is extremely important for a number of reasons. 

If you do not follow the correct legal liquidation procedures, you could end up with severe penalties and fines. Merely clearing all your debt is not sufficient. The company trade license has to be liquidated following the approved, government mandated process. 

In addition, failure to do so may result in the company and every single shareholder and director being blacklisted. This may impact future business ventures and the ability to move freely through the UAE.

Let Bizvisor Simplify This Critical Step

Appointing Bizvisor as your business liquidator will help simplify the process. Our primary tasks as part of the company liquidation process in the UAE include the following: 

Assessing and managing the firm’s assets and liabilities: 

As the liquidator, we assess your company’s financial condition, including its assets, debts, and commitments. We ensure that assets are correctly accounted for, evaluated, and sold to maximize recoveries for creditors and stakeholders. 

Distribution of proceeds and management of creditor claims: 

The liquidator is in charge of distributing the asset sale proceeds to creditors in the order of priority established by law. We analyze and authenticate creditor claims, ensuring fair and equitable distribution treatment. 

Communicating with stakeholders: 

The liquidator serves as a liaison between creditors, stockholders, and workers. We offer frequent updates on the liquidation process, respond to requests and concerns, and assist with the appropriate documents and processes. 

Completing legal and administrative requirements: 

The liquidator produces and files relevant legal papers, such as the statement of affairs and final liquidators’ report, which outline the company’s financial status and the results of the liquidation process. We verify that all relevant rules and regulations are followed throughout the liquidation process. 

Discharging the company’s responsibilities: 

The liquidator ensures that the company’s outstanding debts, dues, and obligations are handled and satisfied. This covers the payment of employee benefits such as gratuities and notice period fees. 

Overall, the function of a corporate liquidator is to effectively wind up the company’s affairs, protect creditors’ interests, and promote the firm’s orderly dissolution. At Bizvisor, we have years of experience providing business liquidation advice and services to a varied clientele. If you’re looking for a quick, seamless and efficient way to liquidate your company, look no further.

Documents Required For Hassle Free Business Liquidation 

The following are some of the documents you will need to complete the liquidation process.

• Power of Attorney (if any) 
• Copy of the license 
• De-registration application form 
• Resolution of the shareholders 
• Copy of your Emirates ID card  
• Copies of all shareholders’ passports 
• Copy of the Memorandum of Association (MOA), with any changes

Your Bizvisor consultant will assist you in gathering and submitting the necessary documents.

Seamless Free Zone Liquidation Process 

While Free Zones do not legally require a company liquidator, it will still simplify the process by hiring one. This is because different free zone authorities may have different rules and procedures. Generally, the process includes the following steps:

• Notifying the Free Zone authority of the decision to close 
• Publishing of a  liquidation notice by the authority
• Obtaining NOCs from necessary authorities, departments and utility provider, by the business owner 
• Canceling all staff visas and work permits 
• Closing bank accounts 
• Receiving a formal termination letter from the Free Zone authority 

There may be multiple processes and documents required at each stage. Bizvisor can help you