When going ahead becomes impossible, companies may choose to carry out voluntary liquidation in the UAE for a graceful exit. Appointing company liquidators in the UAE is a mandatory requirement to wind up a company as per relevant rules and regulations. However, the liquidation process may encounter unnecessary roadblocks if you choose the wrong liquidators in Dubai. This blog will guide you on the key factors you must consider while choosing the right company liquidator in the UAE. Read ahead to know more insights:
Look for Experienced Liquidators in Dubai
Liquidating a company in Dubai may be difficult for the director or shareholders. However, it can be unnecessarily problematic if you hire inexperienced company liquidators in the UAE. Winding up a company in the UAE through liquidation is a highly regulated process and engaging liquidators with less experience increases the risk that the liquidator may not complete the process with the necessary professionalism.
Check the Size of the Firm
Size plays a huge role while selecting the right liquidator for closing down your company in the UAE. The advantage of hiring a large liquidation firm is that they may have highly stringent processes to quickly identify relevant issues in the liquidation process. However, this does not mean that hiring a smaller company puts you at a disadvantage.
The key benefit of hiring a small company is that they will deploy their best professionals to carry out the liquidation process in the UAE. In a big firm, chances are high that important work may be handed over to junior employees with less experience.
See if They Value Professionalism
It is advisable to learn about a company even before start working with them. You can learn a lot about the way a company operates before you ever start working with them. When you first contact a liquidator, you can learn a lot from the manner in which they deal with you. Check if they field your enquiries quickly and efficiently and treat you with courtesy and respect.
This may be the least you are entitled to expect but it is not something you should take for granted. Checking these aspects will give you a hint about how the liquidator will operate once the liquidation process commences. If your initial experience with the liquidator is not satisfactory, you should not take the risk by assuming things may get better as the process starts.
Shortlist Companies with a Good Reputation
A highly regulated process like liquidation warrants liquidators with a good reputation. Companies with good reputations are highly likely to follow professional ethics and less likely to engage in unscrupulous dealings. Hiring companies without a code of ethics may resort to illegal solutions in case you encounter any roadblocks in the liquidation process.
Impartiality is one of the top qualities that liquidators in the UAE are expected to demonstrate. It means the liquidator should not only be completely independent of the business but he or she must also be seen to be independent. You should not take any chance with this and any possibility of personal bias or conflict of interest should prevent the appointment of a liquidator.
Hire a Firm that Understands UAE Regulations
Apart from executing the mandatory steps, you need to meet certain regulatory requirements to complete the process of company liquidation in the UAE. Most directors and shareholders are oblivious to such regulatory requirements, which may delay the liquidation process in addition to attracting hefty penalties.
You may attract penalties if you forget to meet key requirements related to VAT deregistration, Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO). The liquidators in the UAE should be in a position to advise you on such regulatory requirements in case you are unaware of them.
Find a Company that Thinks Outside of the Box
You should not assume that all liquidations are the same. The liquidation of some companies may involve certain challenges which may be difficult to navigate. A typical liquidator may not be able to offer the right solutions in such cases. You need to hire a liquidator that thinks outside of the box to navigate such unique challenges of company liquidation in the UAE.
Hire the Best Company Liquidators in Dubai, UAE
The process of company liquidation in the UAE is a complex process that requires assistance from experienced liquidators. However, you should not hire company liquidators in Dubai without carrying out proper prior research. You can consider the factors listed in this blog while hiring the right liquidators in the UAE.
If you are aiming to hire competent, ethical and highly experienced company liquidators in Dubai, look no further than Jitendra Business Consultants (JBC). We are one of the leading providers of company liquidation services in Dubai with years of experience and a solid reputation. JBC has liquidated all types of companies including the free zone, offshore and mainland firms. Contact us today to complete your liquidation process hassle-free.