Company Liquidation in the UAE

Company Liquidation in the UAE

Liquidation of a company means winding up its operation and existence. Irrespective of what type of business you own in the UAE, it is mandatory to cancel your business licence and all related permits when you have made your decision to close down the company. During this process, all the assets of the company will be liquidated and the proceeds from the sale of assets will be used for settling debts, paying expenses and transferring any remaining balance to shareholders of the company. Once a company is liquidated it will stop doing business and hiring employees. The name of the company will be removed from the Trade Registry and the entity is considered to have ceased to exist.

Liquidation can be both voluntary or compulsory (through a court order). Voluntary liquidation is when the shareholders decide to liquidate the company and appoint a liquidator through a shareholders’ resolution. Compulsory liquidation occurs when a company’s debts are not paid on time and creditors request the courts to liquidate the company for collecting their dues. The courts will force the company to liquidate and sell its assets in order to pay outstanding debt.

Reasons for Company Liquidation
  • The main motive of setting up of the company is fulfilled and the entity is no longer required;
  • The company is considered to be insolvent.
  • The liquidation process will differ depending on these factors:
  • Type of ownership
  • Type of liquidation
  • The jurisdiction of registration, if it is mainland or free zone
How Lloyds Consultants Dubai assists you in company liquidation?

The liquidation process is time-consuming and costly as quite often companies have to liaise with numerous external parties/authorities to arrange everything in a systematic manner. Missing out any step or document will lead to unnecessary delays and complications. Lloyds Consultants provides liquidation services for all UAE entities – LLCs, free zone companies and offshore companies – right from the beginning to the end of the process, based on the client requirement.

How can Lloyds Consultants Dubai help you?

Lloyds Consultantshave direct connection to government departments and ministries to make sure the process of obtaining tax residency certification goes smoothly. If you need assistance to obtain a Tax Residency Certificate as an individual or a company in Dubai, Abu Dhabi, or any part of the UAE, feel free to contact us!