What is the liquidation of the company?
It is an activity by which the operations as well as the existence of a company will come to an end. The word liquidation is also known as winding-up or dissolution or deregistration.
The liquidation of a company is generally known as the closing of, or cancellation of a company in the UAE.
Liquidation & Deregistration of Company in UAE
When companies are not functional any more or there is a mutual agreement that certain businesses and their activities should come to an end. When the organization is in a situation like this, it can be expected that it’s going to be a dissolved company in the near future.
Liquidation of a business organization is a prolonged process and thus needs an agent to handle the affairs. The process covers a wide array of business events like finalizing the company’s transactions which include liquidation of stock (the assets are sold or distributed among the shareholders and creditors), investigation of actions of the Directors in the past, etc. All the above actions are taken according to the commercial law of the UAE.
Liquidation of a company can be done by the company in any of the following cases:
- The majority of the shareholders choose to liquidate the company with a prior decision
- In case of insolvency, where the accumulated losses are greater than half of the company’s authorized capital
- When the court rules to liquidate the company
- Shareholders agree upon the Voluntary liquidation of the company
A company can conclude its business activities due to various factors, but for sure, it is indeed very complicated. It is therefore advised to hire the services of the specialists with the best of capabilities.
PMC Solutions DMCC is one of the top Business Consultants in the UAE with an in-depth understanding and vast skill in the field of Liquidation. We hold key skills in the liquidation of companies in the UAE and have successfully liquidated many companies in the past.
Company Liquidation Process
Below is the list of the entire process of the liquidation of the company in UAE.
- Nominate a liquidator
- A resolution is issued by the board of directors of the company that the company is going under liquidation and hence, appointing a liquidator mentioning the credentials of the liquidator.
- The liquidator announces the briefings of the board resolution in at least two local newspapers.
- The creditors (if any) are supposed to submit their objections/ claim (if any) within the time stated in the publication. Other parties related to the company also entitled to object the liquidation.
- The time extension can be demanded to the shareholders by the liquidator.
- When the liquidation is completed, a report must be issued by the liquidator.
- A closing report needs to be submitted to the registrar of the company by the liquidator. The company’s registrar office issues the certificate of deregistration once the report is approved.
We at PMC Solutions DMCC play a very vital role as a liquidator and with wide experience of the field the process of deregistration of a company goes in a smooth manner in a very short time.
Documents required for Liquation of a Company
Here’s a list of documents needed for the process of liquidation:
- License Copy
- Copy of Memorandum of Association with necessary changes
- Power of Attorney
- Shareholders Resolution
- Shareholders/Directors passport Copy
- Copy of Emirates ID
- Application Form for Deregistration
- Notice Period for Liquidation
PMC Solutions DMCC as a Liquidator
PMC Solutions DMCC has a professional team of experts who are capable of handling all the affairs of the liquidation of a company. We guide our clients through all the steps of deregistration. Our team deeply investigates the past business transactions and directors’ actions to execute the liquidation process smoothly.
We have an appreciable track record of completing the task of liquidator with great efficiency.
Contact us for more details about the liquidation of a company in the UAE.