LLC Company Liquidation – Al Fahad Tax consultancies

LLC & Off-shore Liquidation

AlFahad Tax Consultancies is committed to providing top notch LLC & Off-shore company liquidation services in the UAE.

Liquidation of a company is a lengthy process that can be forced or consensual.

Government authorities should be advised of your plans to close your business as soon as possible. This is to avoid any fines or penalties that may have accumulated. It’s also a good idea to contact a firm that specialises in company liquidation in the UAE.

Company liquidation is the process of bringing a company’s affairs to a close, which usually include an investigation of previous activities, asset sales, and an equitable distribution of the company’s assets among its creditors and then to its shareholders.

It is mandatory for a corporation to stop doing business and employing people as soon as it is liquidated. A company’s business licence is cancelled, its name is withdrawn from the Trade Registry, and the entity is deemed to have ceased to exist when it is liquidated.

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What is a Liquidator?

A liquidator is usually a registered agent or a company based in the United Arab Emirates. Typically, a chartered accountancy or audit firm is tasked with acting on behalf of the company to liquidate its assets in order to raise cash and pay off any remaining debts. A liquidator is normally nominated by shareholders by a resolution, although in the situation of compulsory liquidation, the courts may appoint one. At the outset, the liquidator will submit an official letter of acceptance upon their appointment.

Our Accounting Outsourcing Process

Appointing a Liquidator

A liquidator is appointed either by the company’s shareholders (voluntary liquidation) or by the Court (involuntary liquidation) (compulsory liquidation).

Advertisement in the newspapers

The dissolution shall be announced in two local daily publications, one of which should be in Arabic. The company’s dissolution is not effective against third parties until the date of registration.

Notification of the Competent Authority and the Registrar of the Dissolution

The company’s Managers, Chairman, and Liquidator, as applicable, must file a dissolution of the Commercial Register with the competent authority, along with all necessary documentation.

Obtaining Certificate of deregistration

If no complaints are received from any third parties after 45 days from the date of the advertisement, the liquidator will ask the competent body to cancel the business licence. A certificate of deregistration will be issued by the company’s registrar.

How can AlFahad Tax Consultancies help you liquidate LLC company?

The appointment of a liquidator for the liquidation procedure is a legal obligation. That is to say, AlFahad Tax Consultancies’ extensive knowledge in the sector of liquidation will ensure a smooth transition. Above all, we are a recognised and registered auditor with practically all government agencies in the UAE, including the Ministry of Economy, the UAE Central Bank, RERA, Ministry of Justice, UAE federal courts, Dubai courts, Abu Dhabi courts, DIFC, and the majority of the country’s major banks. Please see the Memberships and Registration page for more information.

We recognise that businesses in the process of liquidation are going through a difficult financial period, thus we charge very reasonable and inexpensive costs for our liquidation services.

Liquidation can be a difficult process. That is to say, we will relieve you of all your responsibilities and will manage all legal procedures required by UAE legislation, including:

filing relevant documents with relevant authorities
advertising in the newspapers
the preparation of Final Account of the Liquidation.

What are the many forms of business closures?

The corporation may be wound up in one of two ways:

Summary Winding Up: A summary winding up is used when a firm has no liabilities or is able to discharge them within six months, and it starts with a statement of solvency.

Creditors Winding Up: A creditors’ winding up begins when the company passes a resolution, followed by a meeting with the company’s creditors.

Court Winding Up:Court adjournment in accordance with UAE Commercial Transactions Law No. 18 of 1993 (Volume 5, Bankruptcy and Preventive Composition) and other applicable laws.

What is the difference between the two stages of the liquidation process?

First, is the termination of the company’s license/s
Second, is the company deregistration or dissolution Both of these stages involve the submission of resolutions and may include a public notification process.

How do you wrap up a summary?

If you believe your firm is failing and you intend to liquidate it. Then you can begin with a wrap-up summary. However, if a corporation has no liabilities or is able to fully discharge its liabilities within six months of the start of the winding-up, it is referred to as a summary winding-up.

I. Appointment of liquidator

On or after the start date of a summary winding up, the company should appoint a liquidator for the purposes of the winding up by passing a Resolution.

All of the directors’ powers terminate upon the appointment of a liquidation, except to the extent that the Resolution appointing the liquidator or any future Resolution otherwise specifies, and subject to any such Resolution and Regulation. The liquidator will thereafter be allowed to exercise all of those powers.

Why is it mandatory to appoint a Liquidator in the winding up of a company?

When a company is winding up, it is required to appoint a Liquidator, who performs a crucial function by assessing the company’s assets and liabilities and properly settling those liabilities.

Upon the appointment of the Liquidator for the company’s winding up, all of the company’s Shareholders/Directors’ powers will be revoked. The Liquidator will determine the company’s financial situation at the time of liquidation and will be responsible for the discharge of the company’s assets and liabilities. All of this will be included in the Liquidation Report that the Liquidator will produce during the winding-up process.

Who can be appointed as a Liquidator of the company?

The Legal Registrar may prescribe the qualifications required for a Liquidator.

II. Application of assets and settling

The Legal Registrar should receive a statement verifying that the company has no assets or obligations. As a result, the statement should be signed by each of the directors or, if the distribution has been completed by a liquidator, by the liquidator, stating that each director or (as the case may be) the liquidator is satisfied that the company has no assets and no liabilities, and that the company is dissolved upon the registration of the statement.

III. Liquidator Report and Closed Audit Report

Finally, DMCC should receive the liquidator’s report and the final closed audit report. If the liquidator is an audit firm, on the other hand, both reports can be prepared by them and submitted to DMCC.