Company liquidation or deregistration is a serious process which is performed by entities wishing to dissolve their business operations.
An individual or partnership that has no further need for its business activities may request for the dissolution of their business, as this will stop further expenditure on its activities. In some cases, liquidation may be used by companies to sell off all or part of their assets, however this depends on each case. It may also refer to the final registration of a company or business entity with another entity if it has been registered before.
Types of Liquidation
A voluntary liquidation is a legal process in which a company voluntarily ends its operations. A shareholders’ meeting is usually held when a company decides to terminate operations and liquidate its assets. The decision taken by the owner(s) of the company to dissolve and dissolve their company will then ensure that all debts are paid and all assets are transferred according to the applicable law.
Compulsory liquidation is the process of winding up a company when it does not possess sufficient assets to pay its debts. In this process, the company is managed under the supervision of liquidators which ensures that all creditors or investors get their dues by selling off the company’s assets.
Why Company Liquidation is Required
When a company is not able to pay debts and process further operations, it is considered to be insolvent. Liquidation or de-registration enables a company to terminate its operations and turn its assets to cash to clear debts. The term liquidation refers to the conversion of an entity's assets into cash by selling off its assets in the market. This is termed as price discovery method of making money.
Documents Required to Initiate Company Liquidation
A Copy of Shareholders’ Passport
A Copy of Business License
Deregistration Application Form
Power of Attorney (If Any)
A Copy of Memorandum of Association (MOA)
At Al Hadif, we have a team of expert company liquidation consultants who understand the complexities of your business and you will not have to spend time going through all the documents and clearances and that is what makes us different from other company liquidation services providers.
How Al Hadif Can Help You in Liquidation?
Our team of expert company liquidation consultants will help you every step of the way, and they will take care of all the paperwork involved in the process. We have a wide network of professional experts who can assist us with anything from commercial property maintenance to legal advice.
We can help you with the following services:
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- Establishing a liquidator to oversee the winding up of your company
- Making sure that all creditors are paid what they’re owed in full and on time
- Collecting all outstanding payments from third parties such as suppliers and customers
- Making sure that all your assets are sold off and the proceeds are paid out to creditors
- Accounting for any money left over after everything’s been settled
- Making sure that your company’s records are kept up to date and accurate
- Making sure all necessary paperwork is filed with the government
- Working with you to make sure that your business is fully wound up
- Determining which debts are to be paid first
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