Company Liquidation is a process of selling or dissolving a business, in other words, ending a company’s existence. The process involves selling the business’s assets or converting them into monetary funds, which are distributed to shareholders, company members, and any outside creditors who are owed money after the company is liquidated. Businesses don’t need to be insolvent to liquidate; liquidation can be voluntary or involuntarily.
Following is the initial list of requirements for liquidation process to begin:
- A copy of the trade license
- The copy of the Memorandum of Association (MOA)
- Power of Attorney (if any)
- Passport copies of all the shareholders and copy of the Emirates ID
- Etisalat clearance letter (if Etisalat connection)
- Post box clearance letter (if have)
- Customs clearance letter (if you have a customs number)
- Bank closer copy
Spectrum Audit, as company liquidator will ensure a 100% supervision in the liquidation process, turning the company’s assets into cash, discharging the business’s liabilities, and distributing any leftover money to the shareholders in the manner set forth in the company’s constitution. Company owner can also decide if the liquidation of the business is partial where the owner decides to close only one aspect of its business and remains an on-going concern under a new, smaller business profile . Only after all these steps are completed, the company is formally declared as liquidated or dissolved.
You can call +971 4 2699 329 or email Spectrum at [email protected] to know more regarding your audit requirement.
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