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.
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.
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.