It is not easy to close a company; it takes a lot of time. There are many formalities to be done in order to close a company legally. Sometimes a situation may arise that you have to stand in a queue for many hours. The process of company closure differs from country to country. So, here we will discuss the process of company closure in Dubai.
The procedure of closing a company in Dubai requires a lot of legal processes and can be done in two types:
Voluntary or shareholders liquidation: It is a situation when the shareholders want to wind up or disclose the company. This situation arises when the shareholders thought that the company has no reason to continue its operations. It is not ordered by the court.
Compulsory or Creditors Liquidation: Compulsory liquidation takes place when the company is not in a situation to pay its creditors. In this situation, the company’s assets are realized or liquidated and distributed among the company’s creditors as ordered by the court.
Before closing every activity of the company like terminating operations, trade license annulment etc. it is important to settle all your utility, telecommunications bills etc.
You should further complete the following formalities:
The company closure procedure also includes that the company shall publish their information about the closure in an Arabic newspaper.
The company Closure in Dubai is more than just ceasing operations strictly followed by the legal activities. After following all the formalities, the authorities will finalize the termination letter. The notification about the company closure should be done three months prior for the office and six months prior for the plot facility.
To avoid hurdles, you should be very careful and follow all the legal procedures while closing the company.
Termination of the company: it can be mandatory as observed by the creditor’s liquidation and some voluntary liquidation is also controlled by the creditors. Before closing your business make sure you settle down all legal proceedings.
The important steps towards complete termination of a company in Dubai are as follows: