No doubt, a business can anytime encounter the need for closing down completely or selling out. Employers might want to do it for starting a new business from scratch or for other reasons. . The steps of the DIFC license termination are clearly outlined in the DIFC Insolvency Law no 1 of 2019. A DIFC business must Cancel Trade License in Dubai International Financial Centre itself if it falls bankrupt and is unable to pay its debts.
We advise you to seek the assistance of authorized liquidators if your company must undergo involuntary liquidation DIFC in Dubai International Financial Centre or if you are persuaded that doing so is the best course of action at this time. Moreover, DIFC liquidation
Company Liquidation Procedure in the DIFC
You would need to decide that you want the corporation to be liquidated first and foremost. You would need to meet with any other directors of the corporation if there are any. A resolution authorizing liquidation will be adopted at this meeting. The resolution must name liquidators in the DIFC and must formally recognize the company’s insolvency.
There are two stages that you should be aware of for liquidation in DIFC. Let’s consider them thoroughly:
1st Stage of DIFC Liquidation
- All current employees have been paid off.
- In the DIFC, a qualified liquidator is appointed. Additionally, a public notary in the UAE attested to the board of directors and the decision.
- For the issuance of a certificate of company liquidation, DED costs are paid.
- For the dissolution of a firm and the minimum forty-five-day waiting time before creditors or partners can make claims, public notices are published in two distinct Arabic or regional newspapers.
- Providing the DED with a final audit report and copies of the newspaper adverts.
2nd Stage of DIFC Liquidation
- Revocation of visas for all directors
- Obtaining a letter of approval from MOHRE
- A certificate of cancellation is presented, a letter of request, establishment card, and address to the Immigration Head Office
Read More : A Guide to Trade License Cancellation in Dubai.
The DIFC’s Asset Sales Procedure
An insolvency specialist will set up for the assets of the company to be evaluated by a professional or by a firm of values as part of the company liquidation process, including for a DIFC company liquidation. It might occur at or right after a board of directors meeting. Agents will be on-site at the company to conduct an extensive inventory of the company’s assets and to provide a complete and accurate list of those assets. There will be a valuation provided, and it will be predicated on a breakdown.
If the meeting of creditors has not yet taken place, no company assets shall be auctioned. However, authorized liquidators in DIFC, UAE are permitted to consult with all parties before the board of directors meeting to improve the value of any potential offers.
The corporate liquidator, who was chosen by the board of directors, is sworn to maximize the proceeds from the sale of the firm’s assets. No matter how satisfied creditors or partners are with the liquidator’s choice, the liquidator in a corporation can sell assets back to the directors.
The Expenses Associated with Liquidating a Company in the DIFC
For the completion of the finalization of company liquidation in Dubai International Financial Centre, fees must be paid to the local authorities. The appointed liquidator is required to maintain track of all transactions and the time invested in the liquidation process. When the board of directors meets, approved liquidators in the UAE frequently ask for a board resolution requesting that costs be paid on a time basis.
A liquidator is required to outline all the specifics of costs that will be paid for the professional’s services in any sort of liquidation, whether voluntary or required. The creditors must also consent before the liquidation may proceed. If the costs of employing the liquidator turns out to be higher than the initial projections accepted by the company’s creditors, the additional costs won’t be covered until all creditors have agreed to them. Typically, asset realizations are used to pay the fees and expenditures of a company liquidator in DIFC.
DIFC Liquidators – Expert Assistance
A lengthy and sometimes difficult process is involved in closing a business in the DIFC. To make sure you’re adhering to all statutory regulations, we advise you to contact knowledgeable liquidators right away. An approved liquidator facilitates the process by meeting up all rules and regulations regarding liquidation services.
Choose Farahat & Co.
If you have accurate books of accounts with your financial history all mentioned, you do not need to fear at the time of liquidation. With our approved liquidation services, you only need to bring the liquidation report and our experts will carry out the rest of the task for you. Our services are approved, accurate, and reliable. Seek additional guidance from our qualified staff for additional queries.
Read More : Procedure of Closing a Business in UAE.