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All You Need to Know About Company Liquidation in the UAE

All You Need to Know About Company Liquidation in the UAE Due to certain unforeseen circumstances and liabilities, when a business is not able to conquer the market as expected, the company owners would consider the company liquidation process. It is all about winding up the company’s operations and selling its assets for repaying liabilities or financial obligations. It is required to file a petition to the court for the same. Few Situations When A Company Is Liquidated When it is unable to pay creditors When the company has no cash or liquidity for financing The company is not able to procure any form of revenue or business When the company’s losses exceed the profits The directors decide to vote for liquidation at the board meeting. Types of Liquidation Voluntary Liquidation – In this process, the shareholders of a company decide to liquidate the company when it is not able to generate profits. The board of directors with the consent of lenders decides to liquidate all assets to pay its creditors. For example, selling all machinery of the company for repaying the debts. Compulsory Liquidation by the court – When a company is under financial distress If a company is under financial distress and its debts are not paid on time, creditors may request the court to liquidate the company’s assets in order to collect their dues. As a result, the court may make it mandatory for a company to liquidate and sell its assets for paying all outstanding debts. This process is known as compulsory liquidation. Benefits of Company Liquidation Debt will be paid to the lenders and owners won’t have to worry about the money issue. The management and directors will be saved from prospective legal actions. Documents required for Company Liquidation Firstly, the company must produce the Board Resolution for proving that the decision to liquidate has been taken. This resolution will include the name of the appointed liquidator. The original registration certificate should be provided, along with the liquidator’s credentials. All these documents require notarization. After the first steps of the liquidation have been completed, the business should also cancel any special permits or licenses it has obtained for performing different economic activities in the UAE. Branches need to produce the original documents from the parent company. Apart from these the following documents are also required: A letter showing the company liquidation is approved The license of the appointed liquidator for the company that performs the process The dissolution documents of the company in the UAE Documents of company owners that it is subject to liquidation Clearance letter from government departments like immigration, labor, customs etc Bank closure letter If you require any assistance for company liquidation in UAE to limited liability company, free zone company and offshore company, Corpin Consultants can assist you from scratch to end. Contact us at +971 55 843 2911 or info@corpinconsultants.com to know more.

Business Consultancy

Key Factors To Consider When Choosing A Business Consultant

Key Factors To Consider When Choosing A Business Consultant Dubai, known to be the ‘City of Gold’ is the best place to kickstart your entrepreneurial journey. International exposure and investor-friendly environment are the two major factors that drive entrepreneurs to set up their dream business in this city. However, when it comes to understanding the business setup process, many budding entrepreneurs face a tough time. The reason behind it is that no person can be an expert in every aspect of business. Many business owners have realized this already, in fact, if you look past, seeking guidance has enabled several businesses to take the right direction. For instance, during the initial stages of Facebook, even Mark Zuckerberg took assistance from Sean Parker who played a pivotal role in transforming Facebook from a college project into a real company. This shows the importance of hiring a business consultant to get clarity and direction in your startup journey. Here are certain key factors to consider when choosing a business consultant: 1.Knowledge A business consultant should have a profound knowledge of the company’s strengths and weaknesses, as well as current and foreseeable problems, only then, they can ensure a better future for your business. A consultant will find the right opportunities by identifying problems in the first phase. Later, they come up with strategies and develop an action plan for achieving business goals. 2.Experience Reviewing the past track records with previous businesses is a great way to analyze a consultant’s expertise. The more experienced a consultant is, the best guidance you will receive from them. If they have already served many organizations previously, they can offer a ready-made solution which worked for them in the past. If not, they will still know where to start, and which path can be better. 3.Communication Skills A good consultant can clearly convey their message and ideas to the people they work with. They are the ones who come up with the right questions to resolve all crucial business management issues facing your business. They should understand your needs and offer prompt guidance. 4.Trust and Integrity Trust and integrity is vital to any business relationship. When you work with a business consultant, you will be sharing your company’s confidential information and business strategy with them. Therefore, honesty is a crucial factor worth considering, indulge in a long conversation with the consultant as much as you can and derive to a conclusion accordingly If you are looking for a business consultant in Dubai, Corpin Consultants is a trustworthy partner you can always rely upon. We offer a wide range of services including selecting the right jurisdiction, acquiring the essential licenses, legal documentation and other startup consulting services. For a free consultation, contact ek@corpinconsultants.com or +971 55 843 2911.

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