The process of completely canceling an economic trade license in DIFC is propelled by a plethora of reasons. The circumstances might include, the decision of the shareholders to step back and shut down the business completely (liquidation), launching a new company, or bankruptcy. The scheme for terminating a Dubai International Financial Center (DIFC) license is explicitly specified in the Insolvency Law of 2019. If a DIFC company goes into bankruptcy and is no longer able to repay its outstanding dues, it must liquidate. There are obliged prerequisites for firms to undertake DIFC liquidation. Thus, it is highly advised to seek expert consultation from trusted and premiere DIFC liquidators. Moreover, DIFC economic trade license cancellation can be binaurally elective or mandatory.
The Decision to Cancel a Trade License in DIFC
It is primarily imperative to determine whether you wholly and freely intend to terminate the economic trade license. One is required to consult the corporation’s fellow shareholders if they exist. During this session, a decision authorizing insolvency would be enacted. The decision appoints approved liquidators in Dubai International Financial Centre and legally acknowledges the liquidation of the company.
Cost to Cancel Trade License in DIFC
Fees and dues are obliged to be submitted to the relevant deregistration department to complete the execution of business license cancellation in Dubai International Financial Centre (DIFC). Charges for business liquidation are almost the same in all free zones and might not exceed 6500 dirhams. However, if you are subject to fines or if your trade license has expired and not renewed then you will have to submit additional charges. The authorized liquidator must keep account of all transactional activities and the hours devoted to the procedure of liquidation. Authorized liquidators in DIFC typically request a written agreement that demands fees and charges of liquidation to be submitted on time when the board members gather. Either in a voluntary liquidation process or obligatory liquidation process, the approved liquidator is expected to detail all aspects of charges that are to be compensated for the expert’s duties. Prior to the termination process, all creditors should reach an agreement on the aforementioned. When the expenses of hiring a liquidator exceed the original estimation of the shareholders, the extra costs will not be compensated unless the creditors consent to pay these. Asset realizations will be generally utilized to cover the costs and fees of a business DIFC liquidation.
Asset Sale Process in DIFC
A liquidation expert can arrange for the business’s resources to be assessed by a specialist or a valuation firm for the process of business insolvency. Specialists calculate the total number of assets owned by the business and produce a thorough and exact listing of its revenues and assets. A valuation will be produced, which can be based on a breakdown. Nevertheless, certified liquidators in Dubai International Financial Centre UAE, are able to engage with other parties prior to the conference of the board of directors in order to increase the worth of any prospective proposals. The business liquidator appointed by the directors is obligated to optimize the revenues from the liquidation of the total assets of the business.
How to Close a DIFC business?
Firstly, it is essential to inform the Free zone government prior to and according to their requirements that you intend to liquidate your company. The decision to close the firm will be published and announced in an Arabic magazine or journal as a prerequisite requirement. After, you have to acquire a NOC with the help of utility providers as well as other relevant free zone and government authorities. As soon as all documentation is completed, one ought to terminate the workers’ permits and employment visas, as well as shut down their financial accounts. Lastly, the Free zone authorities should send you a formal company termination notice.
Choose the Best Liquidation Services
The process of canceling an economic trade license in the DIFC Free Zone is often a prolonged and complex procedure. It is highly advised that you consult qualified liquidators promptly to ensure that you abide by all the legal regulations and frameworks. Certified liquidators make the process seamless and efficient since they possess immense knowledge and expertise of the laws that govern liquidation operations. You are only required to present the insolvency report to our licensed liquidation service providers, then our specialists will efficiently handle the process. Our procedures are certified, trusted, and top-notch. So, contact us today and we shall be happy to assist you.
Read More : Guide to Trade License Cancellation in DMCC