Liquidation/Insolvency
It is mandatory for any company created in the UAE that wishes to close its doors permanently to dissolve the company according to the rules outlined in the laws leading to company formation and dissolution. Furthermore, every company formed in the UAE must register with the appropriate government bodies to acquire a license to operate. As a result, before the dissolution procedure begins, the firm that plans to close the business must notify the relevant authorities of the intention to cease the business and the reasons for doing so, to prevent any uninvited fines and penalties as a result of the expired license. The technique used to dissolve a corporation differs depending on the type of corporation.
However, winding up an LLC company is not a simple task and involves various steps. For instance, you need to settle utility bills, get clearance from government bodies, cancel workers’ visas, clear off debts and much more.
The process to wind up an LLC company is usually initiated by the company's board of directors in situations when the company has incurred losses equal to half of its issued capital (50%). A general meeting of the partners is conducted by the board of directors to request consent for the company's dissolution. Furthermore, if the losses have reached three-quarters of the capital (75%), the partners who control one-quarter of the capital (25%) can order the company's dissolution. Whatever the situation may be, a company's dissolution can only be carried out after it has been approved by the general assembly, which means a resolution should be passed by the company's shareholders to dissolve the company.
How can Reyson Badger help?
Winding up an LLC company in UAE is a complex and time-consuming process. Reyson Badger can simplify the whole process for you. We abide by all the legal issues and assist you to avoid any extra charges in the finalization of the liquidation report. We also help you with other formalities to wind up the company in time.