Although Dubai is a very promising business destination, that offers many opportunities and directions for development, sometimes the business does not succeed to conquer the market as well as planned or it is perhaps confronted with unforeseen circumstances and economic difficulties. In such cases, company owners should consider commencing the company liquidation procedure.
Our Dubai lawyers can help you with liquidation services and help you follow all the necessary legal steps to end the activity of the company. The liquidation procedure can sometimes extend over a long period of time and one of our Dubai liquidators will help you throughout the process.
Commencing the company liquidation procedure in Dubai
The liquidation of a company in Dubai is necessary when the respective legal entity is no longer able to make the daily business transactions or if its creditors are not being paid. In serious cases, the liquidation procedure can be imposed on the company if a Dubai regulatory agency believes that the company has committed a serious offence.
In this case, we are talking about a compulsory liquidation. This type of liquidation also occurs when the company’s creditors file for liquidation. In other cases, the liquidation can commence voluntarily, when the shareholders decide it is time to end the business activity.
Once it has been established that the liquidation will commence, the company’s board gathers in a special meeting that will outline the development of the liquidation procedure. A liquidator is appointed at this time and any requests from the company’s creditors will be fulfilled. When the liquidation is compulsory, these details will be contained in the court order.
Documents required for company liquidation
Firstly, the company must present the official documents that prove that the decision to liquidate the company has been taken. This document will also include the name of the appointed liquidator. The original registration certificate must also be provided, along with the liquidator’s credentials. All these documents should be notarized.
After the first steps of the liquidation have been completed, the business must also cancel any special permits or licenses it might have obtained to perform various economic activities in Dubai. Branches in Dubai will also need to provide original documents from the parent company.