Approved Liquidators DMCC
Let's Talk
Free Consultation
Let's Talk
Free Consultation
Approved Liquidators DMCC
Company liquidation is a process where a company or a business has to wind up its operations when they are no longer able to run their business. This is also known as License Termination & License Cancellation. The procedure and requirements for liquidation vary in the different zone. The rules and processes for Liquidation in DMCC are different than any other zones. Winding up a company is a complex task and requires a lot of paperwork and legal work. The Liquidator in DMCC simplifies the complex tasks and helps the company to the liquidation process. The DMCC approved liquidators assists the company to wind up with the compliance of the UAE company law. A liquidator is either appointed by the court or by the stakeholders.
Types of DMCC Company Liquidation
- Summary Winding up – This type of wind is done when the director of the company declares that within a period of 6 months the company can wound up.
- Solvent Winding Up – This type of wind is done when the director of the company declares that within a period of 12 months the company can wound up.
- Insolvent Voluntary Winding Up – This type of wind is done when the company has to pay off the debts to its creditors. As the name suggests, this wind-up is voluntarily done by the company.
- Involuntary Winding Up by The Competent Court – This type of wind-up is done when the company receives orders from the DMCC authority to wind up the company. The company might receive the order in the following cases –
- When the company has been struck off.
- When the company has violated the regulations of DMCC.
What circumstances invite company liquidation in DMCC?
Liquidation occurs when the company has reached the point when there is no other chance except turning their assets into cash and getting the company liquidated by the approved liquidators in DMCC. This procedure is done to pay off the debts to the creditors of the business. Following are the circumstances the invites company liquidation in DMCC –
When the registered company doesn't comply with the regulations of DMCC.
When the registered company doesn't comply with the regulations of federal laws
When the company has a shortage of working capital to function.
When there is poor management in the company.
When the company is unable to pay off its debts and the liabilities exceed the assets.
When the company is forced to dissolve itself in order to pay off the debts.
Procedure for the Liquidation of a company in DMCC
- Visit the DMCC portal then log in and upload all the stated documents.
- Cancel any active visas, TAC, PIC.
- Submit the original documents required on the DMCC portal.
- After the submission of the documents, DMCC shall publish a company license termination for 14 days. These 14 days is a grace period where one can notify the authorities if they have any
- objection to the wind up of the company.
- The company gets deregistered when no objections have been raised in the 14 days. A letter of termination is issued by the authority after the deregistration and license termination.
DMCC company liquidation with Elevate Accounting and Auditing
Consult with us for your Company Liquidation
Get started with your business needs, we reach out with free and qualified guidance