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Company Liquidation In Dubai

Company Liquidation In Dubai

In Dubai, corporate liquidation occurs when a free zone firm ceases all operations, winds up the business, and distributes all assets among shareholders and creditors. The process of liquidating or dissolving a business is referred to as dissolution.

Why is a company liquidation necessary?

There are two main causes for a corporation in Dubai to need to be liquidated:

The original reason for starting the business has been accomplished, hence it is no longer required to maintain the business; the corporation is now regarded as bankrupt.

Company liquidation in Dubai registration is tasked with selling the company’s assets to raise money and settle any outstanding obligations. These organizations are typically accounting or audit firms. The liquidators in Dubai will present an official letter of acceptance right away after being selected. Until all of their obligations have been met, which are required to complete the liquidation processes, they will write a statement of affairs and a liquidator’s reports.

The company liquidation in Dubai is accountable for the following:

  • Analyze the assets and liabilities of the company. The residual proceeds from the sale of the company’s assets will be divided by a liquidator.
  • Regularly provide updates to the company’s creditors.
  • Make sure that the assets of the company are correctly gathered and distributed.
  • Prepare the final liquidators’ report and the statement of affairs.

What does a company liquidator do?

A company liquidator is a registered company that is typically a chartered accountancy or auditing firm responsible for liquidating the company’s assets to raise cash and settle any outstanding debts. A liquidator in compulsory liquidation may be appointed by the courts or by the shareholders through a resolution. The liquidator will present a formal letter of acceptance as soon as they are appointed. When all of their obligations to complete the liquidation process have been met, they will write a statement of affairs and a liquidator’s report.

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November 12, 2023

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