Though entrepreneurs may find it hard to digest but planning an exit strategy is essential before entering a new business. However, having a sturdy exit strategy such as company liquidation in Dubai is necessary for a graceful exit. If your exit is unplanned, you will be forced to wind up the company in complete disarray, leaving yourself, your employees and other stakeholders in utter confusion and uncertainty.
Starting a business in Dubai without an exit strategy indicates a weak business plan. Business owners must know when and how to shut shop or factory or they will fall prey to many unforeseen situations especially liquidating companies having big storage or factories. Sensible entrepreneurs consider company liquidation as the best exit strategy due to many factors that are detailed in the following article. Company liquidation is simple and cost-efficient and hiring the best liquidators in Dubai is the key to leverage from the process. Read ahead to understand why small business owners consider liquidation as the most viable exit strategy.
You can Minimise Debt Repayments
Opting for company liquidation in Dubai allows entrepreneurs to end their business operations without incurring the burden of debt. Debt or financial crisis is one of the most common reasons why companies choose to liquidate. Given your business situation, you can write off some debts and the rest can be settled through selling assets. Liquidation provides you with the option to settle creditors through the sale of assets, which makes it the ideal exit strategy. However, you need to consider hiring experienced company liquidators in Dubai to make the exit procedures hassle-free.
You are Saved from Court Actions
Any legal action pending against your company will come to a halt once you appoint company liquidators in Dubai to initiate the liquidation process. Once the liquidation process starts, creditors can’t take your company’s managers or directors to court for outstanding debts. However, you can leverage this benefit as long as you don’t have any personal liability toward the company’s debts.
Owners Need Not Oversee Liquidation Process
Winding up a company in Dubai through liquidation involves elaborate procedures. However, entrepreneurs, directors or shareholders need not be personally involved in every step of the liquidation process. Company liquidators in Dubai will oversee the entire process of liquidating the company. Once the management passes a board resolution to appoint the liquidator, the power of the board shifts to the liquidator. Liquidators can be any audit firm licensed to carry out its operations in the UAE.
Ability to Cancel Lease Agreements without Hassle
Generally, all of your company’s lease or hire purchase agreements will be terminated while you begin the liquidation process in Dubai. It means business owners are not liable for any further payment that may have constituted a part of your original agreement. Experienced company liquidators in Dubai can help you to ensure all the lease agreements are cancelled without any delay.
Liquidation Safeguards the Rights of Employees
Exiting business operations through liquidation enables your employees to claim the redundancy pay and other entitlements. In this way, you can ensure that the employees get their pending salaries and entitlements after selling the company assets. Leading company liquidators in Dubai can make the process much easier for you.
Relatively Low Costs Involved
A company is liquidated by distributing all its assets to the claimants. It means you need not rack your brains about the costs of winding up the company in Dubai. Since all the debts are settled through selling the assets, company liquidation remains to be one of the cost-effective exit strategies. Consult with the best company liquidators in Dubai for a cost-effective company winding-up process.
Hire the Best Company Liquidation Experts in Dubai, UAE
Company liquidation in Dubai is a process by which you can shut down your company by distributing its assets to the creditors. Many companies in Dubai were forced to close down due to cash flow issues in the aftermath of the COVID-19 pandemic. All of these companies found liquidation as the best exit strategy due to the factors mentioned here in the blog such as low costs, provision for cancelling lease, no court actions etc.
The process of liquidation is lengthy, and the owners and shareholders need to find the top company liquidators in Dubai, UAE to make it hassle-free. In terms of experience and qualified professionals, Jitendra Business Consultants (JBC) remains to be the leader in undertaking company liquidation in the UAE. JBC’s dedicated company liquidation services in Dubai are key to ensuring that your company is wound up in the best interests of the creditors, employees and authorities.