You can close your company through voluntary liquidation in Dubai, which is so far the best exit strategy available to businesses. The process of voluntary company liquidation in the UAE commences when directors and shareholders agree that the company is unable to continue its operation and must be legally shut down. As per the regulations, company liquidators in Dubai must be appointed to oversee the liquidation process.
However, before considering voluntary liquidation as an exit strategy, you need to be aware of its merits. Go through the below blog and understand the top benefits of carrying out voluntary company liquidation in Dubai:
You can Legally Exit Business
In the past, many business owners or directors have abandoned their company by fleeing the country overnight. It is an illegal way to exit the operations of your business. Legal actions will be pending against you if you pursue such illegal actions that leave your employees and creditors in the lurch. However, company liquidation in Dubai offers you a legal option to shut down your business fulfilling the interests of all the stakeholders involved.
No More Debts after Liquidation
Mounting debt can put great pressure on company directors and shareholders. Debts that fall due can be overwhelming and stressful for the directors or shareholders. However, once your company is dissolved through voluntary company liquidation in Dubai, the sale of its assets will be distributed to creditors. In this way, you can close off your debts and can move on to new ventures if you wish. However, company liquidators in Dubai advises business owners to plan their exit strategy earlier to avoid the complexities of the liquidation process.
Directors can have More Control
There are two types of liquidation in the UAE: voluntary liquidation and compulsory liquidation. A company undergoes compulsory liquidation in the UAE when a court issues an order for liquidation following a petition filed by a creditor. The directors will not have much control over the process of compulsory liquidation. On the other hand, directors will have more control of the process while initiating voluntary company liquidation. The directors can decide when to enter liquidation and appoint a liquidator of their choice.
An End to Legal action
Once the company enters the voluntary liquidation process, legal actions against it will be halted. This provides a great relief for the directors or shareholders which could enable them to seek business opportunities in other areas, depending on the circumstances of the liquidation. Once you start the official liquidation process, creditors will not be able to initiate any additional legal action such as petitioning the courts for an involuntary liquidation. In this way, voluntary liquidation is advantageous for you as a compulsory liquidation process may create significant problems for a company and its directors.
Owners Need Not Oversee the Process
The process of voluntarily winding up a company in Dubai involves complex and lengthy procedures. These include visa cancellation, obtaining clearance from various authorities, and regulatory requirements related to Economic Substance Regulations (ESR), Value Added Tax (VAT) Deregistration, and Ultimate Beneficial Ownership (UBO) etc. Company shareholders or directors need not oversee all the procedures of voluntarily shutting down a company in the UAE.
You must appoint an official liquidator who will oversee the entire process of liquidating the company on your behalf. Once the board of directors passes a resolution to appoint the liquidator, all the powers of the directors shift to the liquidator. Company Liquidators can be any audit firm licensed to carry out its operations in the UAE.
Protects Employee Rights
When you liquidate your UAE company, your employees will be terminated and their visas will be cancelled. However, they will not be left in the lurch when you wind up your company in Dubai. Your employees will get their redundancy pay, other entitlements and any pending salary once the company’s assets are sold. However, you need to avail of reliable company liquidation services in Dubai to accelerate the process.
Relatively Low Costs
The cost of company liquidation in Dubai is relatively low. Apart from the fee of company liquidators in Dubai, you may not worry much about the cost of winding up the company.
Peace of Mind for Directors
Waiting for compulsory liquidation in the UAE is highly stressful for directors of the company. However, voluntary liquidation enables them to peacefully wind up their company in an organised and legal manner. Once the company is deregistered by the authorities, the directors can pursue new ventures or employment.
Hire the Best Company Liquidators in Dubai
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.