Our dedicated expert staff assist the client for the liquidation of the company in all Free zones and Mainland companies.
We perform the job from application till getting the De-registration certificate from the authorities.
Our procedure for liquidation includes:
The process of winding up a company's financial affairs in order to ensure an orderly breakup of the company's structure, the carrying out of necessary inquiries, and the equitable transfer of the company's assets to its creditors is known as liquidation. This happens either because the company is insolvent and thus unable to pay all of its debts or because the members of the company wish to dissolve it voluntarily. We at Oxford Auditing have experienced liquidators to assist with company liquidation services in Dubai & other Emirates from inception till the conclusion of the liquidation process.
The only option to completely wind up a company's affairs and put an end to its existence in the United Arab Emirates is through company liquidation, as opposed to just selling the company's assets and paying its debts, which maintains the company structure. In order to carry out the procedure and safeguard the interests of various stakeholders while the Company structure is disassembled, Oxford Auditing, an independent accounting firm, serves as liquidators in Dubai.
A company may be dissolved either voluntarily or forcefully by authorities when it is unable to pay its debts. According to UAE legislation, there are two categories of company liquidation:
Voluntary liquidation - A company may decide to voluntarily dissolve itself for a number of reasons, such as the passing of a certain period of time, the accomplishment of the firm's mission, the abandoning of its objectives, a merger with another company, persistent business losses, or the inability of the company to pay its debts.
Compulsory liquidation - When a company breaks a significant law or is unable to carry on with its business operations, it may be required to wind it up. This is known as a compulsory winding up of a corporation. Additionally, it takes effect when customers file claims with government authorities to reclaim their assets. The local government then takes action to forcefully dissolve the business.
A company's liquidation procedure may take a long time and be expensive due to the numerous third parties and authorities that must be contacted. Any step or document that is overlooked might result in frivolous delays and difficulties.
The introduction of the Value Added Tax (VAT) and Ultimate Beneficial Ownership (UBO) rules has also made the process of liquidating a company in the United Arab Emirates more complex, necessitating a more cautious approach from the companies.
Our experts will cancel licenses and seek clearance from various government agencies on behalf of the client.
Oxford Auditing can take care of the following:
Taking into account that all phases are completed on time, the liquidation process for a company will typically take 50 – 60 days. The length of time it takes to liquidate a corporation in the UAE depends on a number of variables such as the size of the business operation, the location of the company (Mainland or Free zone) & the nature of business activity.
As a company goes through the liquidation process, its assets, including its stock, are "liquidated," or turned into cash, and distributed to the company's creditors in line with their priority, any residual balance might then be distributed to the company's shareholders. As a result, your company no longer exists, and Companies House removes it from the registry.
If an employer is unable to find a method to keep the business running, the company may be forced to liquidate voluntarily. Employees' employment contracts will all be terminated as a result of voluntary company liquidation in UAE.
Employees are eligible to file a claim for money owing to them. The business's liquidator will send out appropriate claim forms; nevertheless, employees may choose to write a company liquidator request for forms if they haven't gotten any. If an employee is unaware who was chosen as the company's liquidator, he or she should contact Human Resources department.
In most situations, company liquidation in Dubai results in the termination of employees. Employees have rights, and any cash left over after the liquidator settles fees and expenses are to be used to pay overdue entitlements to employees rather than unsecured creditors. Priority employee entitlements in the UAE are classified into many classes and are paid in the following order:
Wages and gratuity payments owed
Outstanding leave of absence
Each class will be settled in full before moving on to the next. If there is no money left to play a specific class in its entirety, all available funds will be paid pro-rata. This indicates that the subsequent class or classes will not be compensated.
