Everything that has a beginning has an end. The life cycle of a commercial company starts with incorporation or registration, covers the growth phase until it reaches maturity followed by the decline phase, and finally ends in liquidation and deregistration. A commercial company, by its nature, exists to make a profit and generate cash surpluses to satisfy various stakeholders.
A smart move is to liquidate and deregister the commercial company while the going is still good enough to pay all its liabilities from its assets and return the residual assets to its owners. A timely voluntary liquidation will give the commercial company a great degree of control over the process. The reputation and credit-worthiness of its owners will also remain intact, which is important for starting a new business in the future. Procrastination often results in unpleasantness. Involuntary liquidation can be triggered by creditors or the court. In such events, the owners have far less control than a voluntary liquidation. Assets generally tend to realize lesser value as the potential buyers look for bargains in the knowledge that there is a compulsion to sell. Reputation loss for the owners is an additional thorn in their side.
Liquidation Rules & Regulations
In general, liquidation involves early termination of all unexpired contracts, disposal of all assets and inventories including work in progress, and obtaining certificates confirming the settlement of all liabilities from banks, lenders, creditors, and regulatory authorities. Some assets may be taken over by creditors, owners, or shareholders. In such cases, unbiased professional valuations may be required.
In the UAE there are specific liquidation and De-registration rules for:
Free Zone companies
Offshore companies [ARC Associates Deregistration]
It is advisable to consult a professional such as approved liquidators for LLC and FZ company liquidation or DMCC approved auditors and DMCC company liquidators to discuss the process and timing of liquidation and deregistration. An experienced liquidator can save the company time and money while safeguarding its reputation and offering peace of mind.
In every problem, there is an opportunity. The professional liquidators in Dubai can help in maximizing the benefits of the opportunities.
Where to seek help
ARC Associates is an experienced Liquidator, ready to serve you. They are:
Registered free zones liquidators
Approved liquidators for LLC and FZ Company liquidation
DMCC approved auditors and DMCC Company liquidators
For a no-obligation initial consultation please contact:
Mr. Reyees. K.P | Director
Tel: +971 4 4431604