Liquidation

Liquidation Services

Closing a business in the United Arab Emirates (UAE) and Saudi Arabia requires a structured approach to ensure compliance with local regulations and to settle all obligations appropriately. At Maju Management Consultancy, we provide expert assistance to navigate the complexities of the company liquidation, facilitating a seamless and compliant process.

Stress-free, compliant liquidation

Complete regulatory adherence

Protection of stakeholder interests

Find the right innovation projects for your business

24/7 Support: +971 561653341

Understanding Company Liquidation

Company liquidation is the formal process of dissolving a business entity, during which its assets are sold to repay creditors and any remaining funds are distributed among shareholders. This procedure can be initiated voluntarily by the company’s owners or mandated by a court due to insolvency. The primary goal is to ensure that all financial obligations are settled and the company’s legal existence is formally terminated.

Documents Required for Company Liquidation

In UAE

Copy of Trade License

Memorandum of Association (MOA)

Shareholders’ Passport Copies

Emirates ID Copies

Board Resolution

Power of Attorney (if applicable)

Deregistration Application Form

Tax Clearance Certificate

In Saudi Arabia

Commercial Registration Certificate

Memorandum and Articles of Association

Shareholders’ Resolution

Power of Attorney

Tax Clearance Certificate

Liquidator’s Report

Advantages of Company Liquidation

It’s essential to consult local regulations to determine specific obligations.

Structured Closure

Ensures an orderly winding up of the company’s affairs in compliance with legal requirements.

Debt Resolution

Facilitates the settlement of outstanding debts, providing relief from financial liabilities.

Legal Compliance

Adheres to local laws and regulations, mitigating the risk of future legal complications.

Asset Distribution

Allows for the equitable distribution of remaining assets among
shareholders.

Fresh Start

Enables business owners to conclude current ventures responsibly, paving the way for new opportunities.

How Maju Management Consultancy Can Assist You?

At Maju Management Consultancy, we offer comprehensive support throughout the company liquidation process in the UAE and Saudi Arabia:

Consultation

Providing expert advice on the legal and procedural aspects of liquidation.

Document Preparation

Assisting in the collection and preparation of all necessary documentation to ensure compliance with local regulations.

Liaison with Authorities

Coordinating with relevant government bodies to facilitate approvals and clearances.

Asset Management:

Advising on the valuation and disposal of company assets to maximize returns.

Debt Settlement

Guiding the negotiation and settlement of outstanding debts with creditors.

Final Reporting

Preparing and submitting the liquidator’s report and ensuring all legal formalities are completed for the official dissolution of the company.

Frequently Asked Questions

Some frequently asked questions about the service that you may have questions about

What is the difference between voluntary and compulsory liquidation?

• Voluntary Liquidation: Initiated by the company’s shareholders or directors, often due to
financial difficulties or strategic decisions.
• Compulsory Liquidation: Mandated by a court order, typically when the company is
insolvent and unable to meet its financial obligations.

How long does the liquidation process take in the UAE and Saudi Arabia?

The duration varies depending on the complexity of the company’s affairs and
adherence to regulatory requirements. Generally, it can take several months to complete.

Are there any legal consequences for directors during liquidation?

Directors are responsible for ensuring that the liquidation process complies with legal
requirements. Failure to do so can result in legal repercussions, including personal liability for unpaid
debts.

Can a company be re-registered after liquidation?

Once a company is liquidated and deregistered, it ceases to exist as a legal entity. Re-registration would require establishing a new company.

What happens to the employees during liquidation?

Employees’ contracts are typically terminated, and they are entitled to any due salaries and end-of-service benefits as per labor laws.

Have Questions? Reach Out to Learn More!

Let’s Connect with Us!

Partnering with Maju Management Consultancy ensures a structured and compliant approach to company liquidation, allowing you to conclude your business operations with confidence and peace of mind.