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HomeFinance and AccountingInsolvencyLiquidating a company in Dubai internet city

Liquidating a company in Dubai internet city

If you own a business in UAE, you must cancel all the permit when you decide to take down your business. The decision to close down a business set up in Dubai internet city requires a whole procedure for liquidation. The type of business doesn’t matter but the closing procedures must be followed with accuracy for liquidation. Liquidators in UAE can help in such operations because they are experiences and well versed with all the procedures.

Liquidation in Dubai internet city

Liquidation is the process of closing down a business and distributing all of its assets to the appellants. Sometimes the companies get to burdened and it becomes difficult for them to deal with all the obligations. When the burden becomes too much to handle, they decide on taking it down. A lot of businesses do not think about completing all the legal procedures for closing the brininess like cancelling the license. This creates a lot of problems and fines for the liable persons. That is why it must be made sure that the company completes all the legal procedures on time.

Liquidating a company in Dubai internet city?

There can be different causes behind closing down the company. Here are some of the reasons which may make the company owners decide on closing down the company in Dubai internet city;

  • If most of the shareholders of the company decide to liquidate the company
  • If the company faces too much loss which makes it lose half of its capital
  • If the court orders for the liquidation
  • If an important person of the company leaves it

One of the most important steps that should be taken by the company is to notify the authorities about the decision. This is because the authorities should know that you will no longer provide your goods and services. This step is of prime importance as it saves the companies from several troubles including the fines and penalties.

When a company decides to liquidate itself, all the shareholders should sign a resolution which should state the liquidation. They should also appoint the liquidators in UAE. The basic reason behind hiring the liquidator is to make sure that someone oversees all the operations of liquidations appropriately.

If not all then at least most of the shareholders should be agreed upon the decision of taking down the company. Many a times, the court also orders the companies for liquidation. That may be because of a huge number of liabilities the company is not able to fulfil.

When the company is closed down, all of the associated employees’ visas get cancelled because the visas were associated with the company. Furthermore, the bank account of the company is also closed and all the paperwork is completed before closing the company completely.

Liquidation is not an easy task to carry out. That is why liquidators are a good option to consider. They make sure that everything is distributed to the creditors accurately. They also keep an eye on the fact that no one claims the money falsely. That is why it is a good option to take their help rather than doing it all alone. Click here for more about that topic.

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