Liquidation is one of the important concepts in the field of finance and accounting. It deals with the procedure of bringing a business to a completion and dispensing its possessions to appellants. This usually happens when a company is insolvent, or in other terms, it cannot pay its dues on time. Whenever a company operation decreases to an end, the remaining assets have to be used to pay the shareholders and people who have a role over there. This is all done on the basis of priority claims. A company which has its operations and functioning in Dubai and is facing turbulent challenges as well as looking forward to closing down needs to be properly liquidated by settling the dues with its shareholders. Hallmark International is one of the leading groups in handling company liquidation in Dubai.
Financial transactions in the corporate sector are very crucial. The need for day to day money transactions keeps accumulating if it is not taken care properly. When a corporate fails to meet up the holding of liquid money, there will be a difficult situation. When the cheques haven’t been credited properly or the dues are still pending, we can assume that the company is in serious trouble. Countries like Dubai, there are very strict laws on repaying of the cheques and credits. As per the rules and regulations, a corporation should be responsible for the payment to its shareholders as in the agreement. If anyone fails to do so, they will be facing serious trouble. The liquidation of the company in Dubai can be voluntary or compulsory in accordance with the depth of their issue.
Closing down a business is not an easy task. There need to be various things to be managed properly. In order to do it smoothly, first comes the cancellation of trade license, clearing all pending bills, gathering all required documents from the government, checking on the required papers from the government authority, closing the bank accounts, cancelling the visas of the employees etc. has to be done without delay. Referring to the above statement we can conclude that the liquidation of a company in Dubai can be a complicated and time-consuming. Once you hand over the project is being handed over to Hallmark International, you can be tension free regarding the legal issues and other things related to that.
The laws of most countries for company liquidation and closing of businesses vary from one country to another, either voluntary or compulsory.
We will require the following documents for the effective Company liquidation procedure:
- Commercial License Certificate
- Copies of valid passports for concerned persons.
- Copies of valid Emirates ID for concerned persons.
- Copies of Family Book for UAE Citizens.
- Copies of Signature authentication attested by the Notary Public.
- The company’s Extraordinary General Assembly resolution attested by the notary public and stating that the partners decide to dissolve and liquidate the company, and appoint a legal liquidator.
- A letter from the liquidator stating that he accepts appointment as a liquidator of the company
The basic standard procedures for liquidation include:
- Obtaining a Commercial Register certificate stating that the company is under liquidation.
- The liquidator’s announcement concerning the liquidation of the company in two local newspapers for 45 days.
- Submitting the original announcements after 45 days from the date of publishing.
- The liquidator’s statement of no objection during the 45 days.
- Letters addressed to any concerned authorities to cancel the Commercial license (Ministry of Labour – ADDC) in addition to the authorities that need cancellation letters.
- Paying the prescribed fees and obtaining the License Cancellation Certificate.