Disagreements, financial problems, and a great deal of emotional baggage may accompany the closure of a business. However, you should never contemplate leaving your business in Dubai.
A Dubai business that fails to revoke its company licence or that fails to go through the liquidation procedure may find itself in financial difficulty and legal trouble as a result. This is why, if you decide to shut your business, you must liquidate your assets first.
Non-profitable companies in Dubai are considering the possibility of corporate liquidation. As a result of such a situation, the shareholders and directors of a corporation decide to put the firm into voluntary liquidation.
Business owners in Dubai have a tendency to neglect the procedures associated with company dissolution. This may become troublesome, resulting in increased penalties and other legal problems.
Check out the list of things that may happen if a company’s liquidation in Dubai is not considered:
Business liquidation is required because failure to do so results in the obligations and liabilities of the shareholders and the company owners being unpaid. With time, these arrears may balloon into a significant sum, and paying them off might be challenging.
According to UAE commercial law, the termination of a company is mandatory. If this is not done, there is the possibility of being added to the defaulters list, receiving a lifetime ban, and additional restrictions being imposed.
If a thorough liquidation procedure is not followed, bank accounts and other assets may become unavailable for an extended length of time. If you have any assets or money left over in such a bank account, you should consider selling them.
By voluntarily deciding to dissolve your business in Dubai, you may avoid being served with a petition by the local legal authorities. With the assistance of a business consultant in Dubai, the paperwork associated with the liquidation procedure may be completed.
Documentation required for a company’s insolvency in Dubai:
The following papers are required: a no-objection letter from the Ministry of Labour, as well as evidence of residency cancellation for non-Gulf nationals.
In certain instances, a notary public’s dissolution of partnership contract as well as the minutes of the annual general meeting are required in order to dissolve a corporation. Businesses must appoint a liquidator in order to survive. Businesses must also publish a notice in the press announcing the company’s liquidation.