In the United Arab Emirates or UAE, there are two types of liquidations or de-registrations:
Voluntary Liquidation: It is a self-induced liquidation and dissolution of a company. Such a decision is made once a company’s directors, owners, and shareholders decide that there is no reason to continue a particular company.
Voluntary liquidation is also referred to as shareholders’ liquidation. In certain circumstances, a company decides to liquidate to avoid further losses. Poor operating conditions, continuing losses, termination of the objects, debts, and more are some reasons for voluntary liquidation of a company.
Compulsory Liquidation: Compulsory or mandatory liquidation of a company takes place when a company’s debts are not cleared on time and investors or creditors request the court to de-register it to claim their dues. The court then takes action to forcefully wind up the company and help investors recover their capital.
Insolvency is one of the major reasons why a business chooses to liquidate its assets. When a company is not able to pay debts and process further operations, it is considered to be insolvent. Liquidation or de-registration enables a company to terminate its operations and turn its assets to cash to clear debts. There can be some other reasons behind liquidation as well. Some companies liquidate their assets due to unfeasible operations and updated technology. Others wind up their companies because the founder has retired or passed away.
Clearly, company liquidation is a tedious task for creditors and directors alike but can help avoid further losses. When it comes to the process or procedure of company liquidation, there are no fixed steps. You need to understand that the company liquidation process depends on several factors including the condition of the company, type of liquidation, reasons behind the company liquidation or de-registration, and more. The process of company liquidation for one company would be different from another.
Are you struggling with unpaid debts? Are you worried about the future of your company? Hire professional company liquidation services to wind up your business hassle-free. MPMS is a trusted and reliable company liquidation services provider that understands the complexity of your business and is deeply committed to assist you through the liquidation process so you move out legally and smoothly.
At MPMS, we have a team of expert company liquidation consultants to help you with the complete documentation process required to liquidate your company. Apart from these documents, you need to obtain clearances from DDA Finance Department, Dubai Customs Department, DDA IT Section, and more. Our trusted liquidation consultants have the expertise to understand the complexities of your business and offer an effective solution to help you wind up your company smoothly.
Being the best company liquidation services provider, MPMS is committed to guide you through the company liquidation process. At MPMS, you will find an expert team of company liquidation consultants to help you in this critical time and guide you to move out of your business legally without hassles. Our experienced professionals are will take care of all the document preparation, bank account closure, utility cancellations, no liability certification, etc. to make the liquidation process smooth for you.
We offer company liquidation services for all types of free zone, offshore and mainland businesses across the United Arab Emirates (UAE).
There is no specific time frame for the liquidation process. It depends on several factors including the type of liquidation, complexities in a company, shareholders’, current condition, and more. According to a survey, six to eighteen months are enough to liquidate a company in the United Arab Emirates or UAE. Looking for a professional company to help you in liquidation? Talk to our experts!
In order to liquidate your company in Dubai, you should hire a professional liquidation services company. A company liquidation services will have experts to help you address the complex nature of company liquidation and guide you in the right direction.
You cannot liquidate a company as a licensed insolvency liquidator is required to liquidate or de-register a company on its own. Liquidating your company is a complex process best left to the professionals. Milestone offers cost-effective company liquidation services to help you close your business smoothly without any further stress.
Once the liquidation process is initiated, the assets are liquidated and the existence of the company comes to an end.
A liquidator has the legal authority to de-register or wind up a company in order to clear debts and settle claims.
Company liquidation is the process of bringing a business to an end. A corporate debtor or a financial creditor can initiate the process of company liquidation. As the best project management company in the United Arab Emirates (UAE), we offer cost-effective company liquidation solutions to help you in winding up your business easily. Our expert team of consultants offers corporate assistance and legal advisory during the entire liquidation process.
Clearly, both are pretty identical but not exactly the same. Insolvency describes the financial status of a person or a business. In simple terms, insolvency is a situation where a debtor is unable to pay debts he/she owes. On the other hand, company liquidation is the process of shutting down a company or a business.
If your company is not able to pay its due obligations, then you should liquidate it. During this process of company liquidation, the assets are diluted and the company closes down.
It is an incredible way of winding up a company that is failed to process company operations due to its debts. By liquidating the assets of a company, you don’t have to worry about legal actions and other problems.
Some benefits of company liquidation are: