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The Dubai Multi Commodities Center, or DMCC, is a center of commercial prospects for both startups and established companies. The vast number of opportunities, infrastructure, and facilities have earned it the repute of the best free zone in the world. While the DMCC provides various simple conditions for establishing businesses, some obligations and procedures follow during the DMCC company liquidation UAE process.
BS Auditing discusses and describes these processes in depth for greater comprehension and advice.
DMCC COMPANY LIQUIDATION METHOD
In DMCC, there are numerous forms of corporate liquidation. They are as follows:
SUMMARY WINDING UP: In this kind, the firm’s directors declare that they may fully liquidate the company within 6 months of the process’s beginning.
SOLVENT WINDING UP: This is a circumstance in which the Board of Directors declares that they can fully liquidate the firm in a time span of 12 months.
INSOLVENT VOLUNTARY WINDING UP: a procedure in which the company’s creditors participate in the company’s liquidation.
THE COMPETENT COURT’S INVOLUNTARY WINDING UP: In this scenario, the court makes the decision to liquidate a firm. This might be due to a number of factors, including major violations of DMCC rules and regulations, or the corporation being struck off.
Requirements for DMCC Company Liquidation
- The organization under liquidation might be a standalone firm or a branch of an existing company that is winding down its activities from the DMCC. The liquidation company’s license might be:
- If the liquidating company does any regulated activity, it requires a NOC from the Regulatory Authority
- The liquidating company must choose a liquidator to carry out the procedure. However, branches of existing corporations do not require the services of a liquidator to carry out these functions. In their instance, the Director of the parent branch performs all functions that would normally be undertaken by a liquidator.
COMPANY LIQUIDATION PROCESS
- the company selects the applicable service from the portal. It picks the needed change, which is corporate liquidation, the form of liquidation, and either Standard Resolution or Non-Standard Resolution. The portal sends the client a submission notification.
- The DMCC authorities review contact the company to negotiate a retention. This procedure assures that liquidation is the only option is for the corporation. This procedure demonstrates DMCC’s determination to maintain and preserve enterprises while also protecting their interests. If the firm agrees to keep the company, the application is canceled. Otherwise, the DMCC notifies the firm that it must proceed with the liquidation procedure.
- The company provides information on the portal. This information includes:
- the name of the chosen liquidator (valid only for corporations)
- the name of the person who will be granted access to the new site
- the upload of essential documents
- the finalization of the application
- the payment of the appropriate fee
- The DMCC evaluates the application. They go over all of the material and papers that the applicants have submitted to them. According to DMCC’s requirements, the applicant firm may be required to supply extra papers.
- If the application is refused, the DMCC refunds the submitted processing money to the firm by depositing it to the company’s portal account. The AED 20 Knowledge and Innovation charge is non-refundable and is thus maintained. The liquidation application is closed by the DMCC.
- If the DMCC accepts the application, the client will get an approval notification and can begin the liquidation procedure.
- The DMCC entity submits All required documents to the Service Center. It then seeks for the termination of all workers’ work visas as well as any permissions provided by the DMCC.
- The DMCC revokes all employee visas, permits and access, and begins the publication process. The initiation procedure lasts 14 days.
- The company submits final report of DMCC company liquidation.
- The DMCC removes the company’s accounts. The corporation is dissolved, and its branches are deleted from the DMCC’s list of registered corporations. The procedure is completed when the DMCC sends the company or branch a termination notice and branch removal confirmation.
The UAE makes sure every process and every act is well-planned and involves a fool-proof, transparent procedure. All free zones of UAE abide by this policy and follow the prescribed rules. Although it is always hard to see a thriving establishment go, if it is inevitable, it is important the process is smooth and transparent. A professional auditing or accounting firm can ensure this. Bader Saleh Auditing of Accounts is such a platform where complete A to Z assistance and guidance is provided for DMCC company liquidation process.