Company Liquidation in Dubai
Company liquidation in Dubai 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. The process of closing a company is called liquidation and the person or a company that conducts the liquidation process is known as liquidators. A liquidator is appointed by the management of the company.
Company Liquidation Services in Dubai
Our team of liquidators can assist in all stages of the company liquidation process. Xact Auditing regularly acts as liquidators for many companies looking to close their business. Our liquidators are initiating and finalizing liquidations in a timely and appropriate manner.
Closing a company in UAE can be a time consuming and a complicated procedure but our experienced and influential liquidators in UAE can simplify all the legal procedures and assist you in company liquidation process.
Xact Auditing is providing company liquidation services in Dubai to all the Dubai mainland and free zone companies in 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
- Mandatory company liquidation
Voluntary company liquidation
If the business does not have enough money to conduct a business or meet the expenses such as bills and salaries and the company is constantly at loss. In that case, companies will go for voluntary company liquidation as they do not have enough funds to sustain in the competitive market of 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.
Company Liquidation Process
As liquidators we typically fulfill the following obligations:
- Prepare and submit a liquidator’s confirmation to relevant authorities – Appointment of liquidators
- Publish 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 of all the employees of the company;
- Supervise the maintenance of accounting records;
- Closing of bank account;
- File tax returns (VAT);
- Submission of VAT De-registration to Federal Tax Authority (FTA);
- Prepare and submit the report of the liquidator to the concerned authorities;
- Organize the audit of the liquidation and preparing company liquidation audit report;
- Submission of all the original documents to the concerned authorities;
- Cancellation of trade license.
Company Liquidation Audit
A company liquidation audit report is required by the authorities before the cancellation of the trade license. A liquidation audit report will list the liabilities and assets of the company. All the financial information must be shared with the liquidator.
As the liquidation progresses, all the company’s assets are converted to cash and distributed to the creditors or assigned to other Company obligations. There are specific rules concerning the way the assets are distributed. The liquidation audit helps assure the information is accurate and complete.
Dubai Economic Department (DED), Jebel Ali Free Zone Authority (JAFZA), Dubai Airport Free Zone Authority (DAFZA), Dubai Multi Commodities Center (DMCC), and Dubai Silicon Oasis (DSO) all require final liquidation audit report in their respective regions whenever a business is closing its operations and canceling its license. Xact Auditing is offering best and fast liquidation report for Meydan free zone companies in UAE
Xact Auditing will prepare the company liquidation audit report and submit it to the relevant authority where the company is registered. Xact Auditing is one of the leading audit firms in Dubai. The authority will officially close the company and cancel the trade license. For company liquidation services or company liquidation audit report, Contact us!
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