What is Company Liquidation
Any type of business in UAE requires cancellation of license and all other related permits to liquidate the corporate institution and distribute its assets to creditors, shareholders and other concerned parties. Legal structures such as mainland LLC, sole establishment or free zone company formation can be systematically dissolved either through voluntary or compulsory liquidation process.
Types of Company Liquidation
There are two types of Company liquidation procedures in the UAE
In voluntary liquidation, a meeting is held by the registered agent with the owner/shareholders to pass a resolution declaring the dissolution of the company. During this meeting a liquidator is also appointed. This type of liquidation is called voluntary since the owner/directors decide to liquidate the assets, even if the current worth of their assets is more than their liabilities.