Company liquidation in UAE is the process of shutting down a company and closing all the operations related to the company. Company liquidation is an event that occurs when a company is at loss and has no money to pay its remaining debt. When the business is liquidating, all the organizational assets are distributed among the shareholders and creditors, based on their priority of claims.
SPK is providing company liquidation services in Dubai to all the Dubai mainland and free zone companies in the UAE. We are providing company liquidation services to LLC companies as well as sole establishments.
Types of Company Liquidation
There are two types of company liquidation in Dubai:
Voluntary company liquidation
If the business does not have enough money to conduct business or meet expenses such as bills and salaries, it is constantly at a loss. In that case, companies will go for voluntary company liquidation as they do not have enough funds to sustain themselves in the competitive market of the UAE.
Mandatory company liquidation
If a company violates the rules and regulations of the authorities or commits a crime such as fraud or any other serious offense. The government will immediately close the company, and in this case, mandatory company liquidation is required as per the court order.
Process of Company Liquidation
As liquidators, we typically fulfill the following obligations:
- Prepare and submit a liquidator’s confirmation to the relevant authorities. – Appointment of liquidators
- Publish a liquidation advertisement in any 2 local newspapers for 45 days.
- Realization of assets
- Cancellation of contracts and identification of liabilities
- Payment of all the dues, such as Etisalat and DEWA, and other pending expenses
- Payment of wages and cancellation of visas for all the employees of the company
- Supervise the maintenance of accounting records.
- Closing of a bank account
- File a tax return (VAT).
- Submission of VAT de-registration to the Federal Tax Authority (FTA)
- Prepare and submit the report of the liquidator to the concerned authorities.
- Organize the audit of the liquidation and prepare the company liquidation audit report.
- Submission of all the original documents to the concerned authorities
- Cancellation of trade license
It is a long yet complex process that definitely requires professional help. SPK Auditors help businesses in the liquidation process.
How SPK Auditors can help with Company Liquidation services?
SPK Auditors can help companies in liquidation by providing a range of services to assist with the winding down of the business and the distribution of its assets. These services may include:
- Assessing the Financial Position of the Company
- Preparation of the liquidation plan
- Sale of assets
- Collection of receivables
- Creditor Management
- Legal Support
By working with SPK Auditors, companies in liquidation can benefit from a team of experienced professionals who can provide the support and expertise needed to efficiently and effectively manage the winding down of the business and the distribution of its assets.