Many business owners have no call to understand what liquidation is until it’s too late. Put simply, liquidation is the process by which a company that has reached the end of its life is formally closed down and its assets realised (converted into cash).
Although the term is more commonly use in the context of insolvent companies, it may also be used in the context of solvent ones.
When a company goes into liquidation its assets are sold to repay creditors and the business closes down. The company name remains live on Companies House but its status switches to ‘Liquidation’. The removal of the name only comes about on dissolution which is approximately three months after the closure of the liquidation.
There are two main types of liquidation process, solvent and insolvent liquidation.
Solvent liquidation usually involves a director’s retirement, or may be the closure process chosen when a business serves no further useful purpose. This is called a Members’ Voluntary Liquidation (MVL).
Insolvent liquidation occurs when a company cannot carry on for financial reasons. The overall aim of an insolvent liquidation process is to provide a dividend for all classes of creditor, but it is often the case that unsecured creditors receive little, if any, return.
Alya Auditors in the UAE are licensed liquidators with vast experience in all industries, and are available for appointment as liquidator for companies Mainland companies in Dubai,UAE and Free zone Companies like DMCC,DWC,JAFZA,SAIF Zone etc .
The Latest VAT Public Clarification on Cryptocurrency Mining in the UAE The United Arab Emirates (UAE) is a global leader in innovation and technology, including
Auditing and Accounting for Crypto Companies in the UAE: A Comprehensive Guide The rapid growth of cryptocurrency and blockchain technology has transformed the global financial
Don’t Let New Year Festivities Overshadow Your Corporate Tax Deadline As the year winds down and holiday celebrations take center stage, businesses must stay mindful
Truly, let us know what service you are looking for and hence we can get back to you with more details.
Definitely, Alya Auditors is the one partner you need to ensure your business is built on accurate accounting books certainly, to spearhead greater growth and wider market reach.
An association of legally independent auditing & accounting firms in the UAE
Silver Tower, Business Bay. PO Box: 41102, Dubai, UAE.
Sharjah Airport Free Zone PO Box: 120403 Sharjah, UAE.
+971 48769377
+971 52 9750690 , +971 50 522 1035
Mon – Fri : 8:30 AM – 6 PM
Saturday – 9 AM – 5 PM
Sunday – Closed
© Alya Auditors 2022 All Rights Reserved
