What is Liquidation?
Liquidation of a company means that a company closes all its ongoing operations, and therefore, all the assets under the company are distributed amongst its shareholders and creditors. A more informal term for this process is dissolving or winding-up a business. SUPLYD is a website that works with services for company liquidation in Dubai.
Why does a company need to be liquidated?
There are many reasons why a company needs to be liquidated. If a company does not have enough cash to pay its employees, creditors, or to carry its day to day transactions, liquidation becomes inescapable. Similarly, if a company has violated certain laws or has performed some offence, they must shut down as well. At times, shareholders may decide to shut their existing business and move it somewhere else. In all these cases, the process of liquidation of a company must begin.
What needs to be done before a company is liquidated?
Before terminating a business and the cancellation of its license, you must clear all bills that are due such as utility bills and telecommunication bills. You must also close all existing bank accounts, request government for any needed certificates, create the final audit report, and many other legal procedures need to be done.
You need a trusted service that can make this process easier for you and you will, Therefore, hiring a company for such services will help you go through the liquidation process with more ease and will help you avoid any additional costs. You can put your faith in SUPLYD to provide you with the best liquidation service from its partners.
Two types of liquidation
There are namely two types of liquidation; voluntary liquidation and compulsory liquidation. Voluntary liquidation, shareholders decide that the company’s shareholders decided to dissolve it for a reason other than finance. A conference must be held where a resolution must be passed, agreeing to the dissolution of the company. Whereas, compulsory liquidation is dissolving of the company as an order by the court or because of lack of finances to keeps the companyrunning.
Procedure of liquidation
The process of liquidation begins with an appointed legal representative of the company that has to file some documents to the Dubai Trade Register. Some of these documents include:
● A document containing information on the liquidation of the company and the representative’s information.
● A document with the signature from all directors of the company agreeing to the liquidation.
● The registration certificate in the name of the company.
● The company’s trade license.
● A copy of the Liquidator’s license.
Trade License Cancellation
After the submission of these documents, it is necessary to start the process of eradicating the company from the Dubai Trade Register. For this, the company’s commercial license must be nullified.
● A letter must be issued by the Ministry of Labor, starting the permission of the cancellation of the license.
● A document containing a statement that approves liquidation of the company and the appointment of a liquidator.
● All visa revocations of any foreign business partners.
You can order this service now from https://www.suplyd.com/services/finance/financial-services/