Starting a business in the UAE is a feasible option for business investors and entrepreneurs. However, it is to be noted that once the business entity gets established, the real challenge is to maintain its existence. Any small move or miscommunication in the internal proceedings might have a drastic impact on the business entity in the longer run. Continuity of such a phase for an extended period might result in the winding-up of the company or the initiation of the company liquidation process.
Company liquidation is the crucial step that gets implemented when a business entity is not able to perform its business activities. Now, this might be due to several reasons which might have occurred in the organization. The company winding-up process is a complex one, and it takes a significant amount of time and effort to comply accordingly with the relevant procedures. The highly recommended option is to proceed ahead with the help of a professional expert who can settle down the process smoothly.
Are you wondering how? Well, this guide will highlight the different areas where an expert can help you when it comes to company liquidation.
How Can a Professional Expert Help You with Company Liquidation Services?
Approaching a certified auditor can be a very smart move on the part of the management as they will be able to get the following assistance:
Division of Company’s Assets and Liabilities
At the time of winding up, the company assets and liabilities need to be divided as per the relevant ratio stated in the Partnership Deed. If the task is carried out internally, there exists a higher probability of contract breach, which would lead to massive chaos. A professional expert solves liquidation related queries smoothly and professionally. Carrying out the activities as per the stated rule book will ease the division process, and each shareholder will be allotted the proceeds as per their partnership ratio or as mentioned while the incorporation of the company.
Legal Documentation Process
Now, just like the company incorporation proceedings, the company liquidation process also involves several different procedures and involves leg. As per the UAE company regulations, a company must appoint a certified liquidator to carry out the relevant liquidation, and the following essentials are to be submitted.
- A document stating the liquidation of the company and the appointment of the liquidator
- A certified copy by the company’s director
- Copy of the liquidator confirming and attesting to the liquidation process
- Company’s certificate of registration and the trade license
- A certified letter stating the approval of the liquidation
- Proof stating the cancellation of company employees
- Passport, Emirates ID, Visa of the internal team
- In case if it turns out to be a branch, then the documents of the parent company are required.
Now, you can see that dealing with the complete documentation proceedings turns out to be a challenging task. Professionals are well-versed with the legal laws that need to be followed and do have their network to ease the required task.
Settlement of Internal Processes
Managing the internal process to proceed ahead with company liquidation can be a very challenging task. As the documentation processes are carried out simultaneously, the internal processes get managed by a professional. These tasks might include sorting out the liquidation accounts, clearing out the creditor’s payment and the debt recovery.
Helps to Clear the Tax and VAT Proceedings
Clearing the VAT and Tax proceedings is one of the essential tasks that a business entity has to focus on when it comes to company liquidation. A professional auditor or liquidator understands the importance of clearing out the VAT Return Filing and other relevant proceedings. This will also help the management during the process of tax return filing or for calculation of the Value Added Tax (VAT).
Lowers the Burden
Another important reason why professional assistance is recommended to the management is that it lowers the burden of the company and allows the management to better focus on the business activities of the company. If you are a business investor and are looking forward to investing in some other company or establish another business entity, then you can utilize the time more productively.
As the experts will take care of the company liquidation process, you can prepare and strategize your next plan.
How Can We Help?
JAXA Chartered Accountants is one of the top ten Abu Dhabi approved auditors who are keen on providing the best and customized audit and accounting services suiting the business needs. Our audit and accounting experts and thus, hold years of industry experience that helps them to provide the tailored solutions accordingly. If you are looking forward to company liquidation services, or contain any doubt, feel free to have a word with our experts. Contact us today-we’d be glad to assist.