Find out why you should not abandon your company in Dubai

Why should you not abandon your company in Dubai?

Closing a company may entail disagreements, financial difficulties and a lot of emotional baggage. But never consider abandoning your company in Dubai.

A Dubai company that does not cancel the company license or ignores to go through the liquidation process may incur monetary debts and legal turmoils. This is why if you decide to close your company, liquidating your company is mandate.

Non-profitable businesses consider company liquidation in Dubai. Under such scenario, the shareholders & directors of a company voluntarily place the business into liquidation.

Sometimes company owners tend to overlook the formalities of company liquidation in Dubai. This can get problematic and add up fines and other legal issues. 

Check out the list of happening if liquidation of company in Dubai is not considered:

  • Company liquidation is essential, non-deletion retains the debts and the liabilities of the shareholders and the company owners. These arrears can grow to a huge amount with time and paying it off can be difficult.
  • Company cancellation is imperative as per the UAE commercial law. If not done, possibilities of being added to the defaulters list, lifetime ban and other such limitations may be levied.
  • If a proper liquidation process is not carried-out, bank accounts and assets may remain inaccessible after a period. If you have any assets or money felt over in such banks account.

By willingly choosing to liquidate the company in Dubai, you can avoid being petitioned by the judicial authorities. Paperwork involved in the liquidation process can be fulfilled with the help of a business consultancy in Dubai.

Paperwork for company liquidation in Dubai:

The documents required are; no-objection letter from Ministry of Labour and a residence cancellation proof for non-Gulf individuals.

In some cases, you need a dissolution of partnership contract from the notary public and minutes of annual general meeting to liquidate the company. Businesses need to appoint a liquidator. Businesses also need announce company liquidation in a newspaper.

With an experienced insolvency expert, company liquidation can be easier. Understanding the complications Shuraa Business Setup in the UAE offers company liquidation services.

Be it company formation in Dubai or liquidation speak to our experts! Follow the link to get a Free consultation