Liquidation Process
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What is company liquidation?
Company liquidation is the way toward closing an LLC, canceling the trade license, and distributing the organization's assets and properties. After liquidation, the organization will no longer exist.
According to UAE laws, there are two types of Company Liquidation:
1. Voluntary Liquidation
The first category can be defined as the decision made by all shareholders concerning the voluntary liquidator. In order to wind up an organization, no money has to be paid to creditors as a result of the loss of business and loss of profit.
2. Compulsory Liquidation
In a compulsory liquidation, assets are distributed to creditors, and the debts or contributors are paid based on the priority of claims.
What Happens to a Company When it Goes into Liquidation?
- In the event you perceive insolvency, you should contact a professional insolvency practitioner.
- As soon as the insolvency practitioners have been officially notified, they will submit an advertisement to the Gazette to alert creditors of the liquidation.
- A formal meeting occurs so the IP can respond to pertinent inquiries and communicate with the creditors.
- The Director loses all authority, all employees are laid off, and the IP decides how much cash he must repay creditors.
- Upon payment of all dues, the company is struck off the Companies House register and formally ceases to exist.
How AMCA can Help?
Start the liquidation process by contacting our experts at AMCA. Insolvency specialists from our team have decades of experience operating confidentially. Directors will always be kept updated on the progress of the liquidation by our experts. Liquidation is the best alternative for your company, so we ensure it's handled appropriately. In addition, we aim to provide you with transitional solutions and help you focus on new opportunities
As liquidators in Dubai, we offer a variety of solutions to clients in various sectors due to our experience and expertise. When directors opt to liquidate a company, they face limited liability or negligible risk, but only if the process is conducted properly and promptly. Our insolvency practitioners can help reduce your risks and provide professional guidance,
so act now.