DMCC Company Liquidation
DMCC Company Liquidation
The Emirate of Dubai has several Free Zones, and the Dubai Multi Commodities Center is one of the fastest-growing Free Zones in the UAE. Setting up a company compels businesses to adhere to government statutes and regulations, nevertheless, it is equally vital to comply with all the legal channels when dissolving a company in the UAE.
Company liquidation in Dubai involves several government protocols that business owners ought to abide by before winding up a business. Farahat and Co. is a registered DMCC Auditor and Company Liquidator, we have a proven track record of efficiently carrying out company liquidation and winding up businesses.
The Scope and Types of DMCC Company Liquidation?
Primarily, liquidation is undertaken when a company cannot meet its financial obligations and can no longer run its operations. The company’s assets are often sold to meet its immediate commitments based on priority. Moreover, several reasons influence company liquidation, in this instance, it is highly essential to hire approved and reputable DMCC Liquidators to thoroughly audit the business’s financials.
The Procedure of Winding Up
The company director declares that the business operations can be seized and the company’s winding up process takes at most six months. The sole purpose of winding up is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
What is Solvent winding Up?
It is a mode of winding up the company wherein the director declares that the company will be wound up in a total period of 12 months from the date of commencement of the winding-up process.
What is Insolvent Voluntary Wind-Up
If a company is insolvent, the shareholders decide to wind up the company to mitigate the risk of bankruptcy. The creditors have a say in the company’s voluntary winding-up.
Involuntary Winding-Up of the Company by the Competent Court
An Involuntary winding-up of a company is a compulsory winding-up procedure of a company. The DMCC authority issues a legal notice to the registered company in the matter to seize its operations and stop any business transactions/conduct.
Circumstances to the Company’s Involuntary Winding-Up include:
- The company will be struck off the register if it decides to close its operations.
- If the company has violated the rules and policies repeatedly.
In any of the above DMCC liquidation processes, companies need to contact DMCC-approved auditors. The company liquidation process in DMCC has a few more regulations than general company liquidation in Dubai.
The Liquidation Procedure for Companies in DMCC
- A formal online application has to be filled out on the DMCC online portal. The company chooses the mode of winding up the company and submits the resolution. The company will receive a notification once the application is presented on the portal.
- The DMCC authority verifies the application and contacts the shareholder of the company. After careful consideration, it will be decided if the company can retain its business under DMCC or if it must wind up.
- All the relevant documents must be uploaded on the DMCC Portal. The letter of appointing a liquidator and the acceptance letter from the liquidator have to proceed with the liquidator’s services for the company.
- DMCC entities ought to submit all original documents to the DMCC Client Service Center and apply for the cancellation of the visas of active employees, their access cards, and permits. The DMCC authority will
initiate the cancellation of the visas and put out a publication of the company winding up for 14 consecutive days.
Essential Requirements for DMCC Approved Auditor to Complete the Audit Report
- Previous years Audited company financials.
- Assist the company in getting clearance from third-party service providers and authorities.
- Clearance from the landlord & NOC from customs
- Successful closure of the active employee’s visas and access cards
- A shareholder’s resolution for winding up the company
Once the DMCC authority accepts the audit report, the company will be dissolved and deregistered from the DMCC entities. The company will be notified of its termination, and a company removal notification will be issued.
After completing the above essential process, the final documents will be shared by the DMCC Authority, these include:
- License termination letter
- De-registration of the company letter
Avail Expert Liquidation Services from Approved Liquidators in DMCC.
The liquidation procedure for companies in DMCC is often burdensome for business. Thus, availing the assistance of approved Liquidators in the UAE is highly vital, Farahat & Co. is a reliable and trusted point of conduct for DMCC liquidation procedures.
We have a proven track record of efficiently assisting companies in deregistering trade licenses and we wholly undertake our procedures in full compliance to the set standards, laws and regulations. Contact us today and we shall be happy to assist you!