Understanding Company Liquidation in DMCC: Roles and Services of Approved Liquidators
Company liquidation in DMCC, or license termination and cancellation, is a process that occurs when a business can no longer continue operations. This process is regulated by specific DMCC rules, making the role of approved liquidators crucial. DMCC approved liquidators handle the legal complexities and paperwork, ensuring compliance with UAE company law. These liquidators, appointed by the court or stakeholders, manage different types of liquidation: summary, solvent, insolvent voluntary, and involuntary. Summary winding up occurs within six months, solvent winding up within 12 months, and insolvent voluntary winding up focuses on debt repayment. Involuntary winding up is mandated by DMCC authority due to company strike-offs or regulatory violations. When liquidation is the only option, these approved liquidators help companies convert assets to cash to settle debts, ensuring a smooth and compliant process.