SIKÇA SORULAN SORULAR

What is the liquidation or wind-up of a company?

The liquidation of a company is a process in which the shareholders of a company permanently cease their business activities due to persistent losses or for other reasons. When a company is liquidated, its assets are sold and the proceeds are used to pay the company's liabilities. The remaining money will be distributed among the company's shareholders.



When is a liquidation necessary?

A liquidation may be necessary due to any of the below reasons:

  • As a result of continuous losses
  • Shareholders mutually decide not to fund the company and end it
  • By court order
  • Any other reasons.



What is the process of liquidation?

The liquidation process in the United Arab Emirates varies depending on the licensing authority and the scope of business. However, the process usually involves the following steps:

  • Issuing the liquidator's letter of appointment to the authority granting the license.
  • Preparation of the resolutions of the company's board of directors on liquidation.
  • Application, preparation and submission of the license revocation.
  • Newspaper advertisement to inform the public of the company’s liquidation (if applicable).
  • Approval and clearance letters from utilities and telecommunication authorities.
  • Arrange clearance letter from city administration and Customs (if applicable).
  • Closing bank accounts without receiving a statement of responsibility from the banks.
  • Final audited financial statements for liquidation.
  • Cancellation of Partner visas, employee visas, labor cards, immigration clearance.
  • Final letter of cancellation and cancellation of partner visa.