Company liquidators in the UAE play the most important role in the process of ending the operations of a company. A liquidator winds up a company’s affairs by calling in and using the company’s assets to pay off creditors and distribute the remainder to shareholders. Companies operating in Abu Dhabi Global Market (ADGM) free zone need to appoint a liquidator registered with the ADGM Authority to wind up operations.
An ADGM-registered liquidator can be an audit firm approved by the ADGM and listed in its registry as a liquidator. When a liquidator is appointed, the powers of the directors or shareholders cease. The liquidator will assume control of the company’s affairs, and the directors no longer have control of the company or anything it owns and cannot act for or on behalf of the company. If you are a company seeking voluntary liquidation in ADGM, read ahead to learn about the role and responsibilities of company liquidators:
Ensure the company’s contracts are completed
An ADGM-approved liquidator must ensure that all of the company’s contracts (including employee contracts) are completed, transferred or otherwise ended.
Ceasing the Company’s business
A liquidator registered with ADGM will ensure that your company’s business has ceased. A company under liquidation in ADGM or anywhere in the UAE is not allowed to carry out any business activity.
Take Stock of Assets & Liabilities
Once appointed by the directors, registered liquidators in ADGM will take stock of the assets and liabilities of the company. The liquidator in charge of the ADGM liquidation will compile a record of the assets, liabilities and balance sheet of the company.
Keeps Record of Transactions
Liquidators are responsible for keeping a record of all the transactions related to the voluntary liquidation of the ADGM company. This is a procedure required to make sure that the liquidator has delivered all his duties and has not failed to fulfil his responsibilities.
Manage debt collection
It is the duty of a liquidator approved by the ADGM Authority to initiate necessary steps to collect debts from third parties. The liquidator also has the responsibility of opening an account for the company in which all pending debts are to be deposited.
Settle the Company’s Debts & Sell its Assets
Liquidators registered with the ADGM are required to handle key procedures such as settling debts, sale of moveable assets or real estate through an auction or through any method specified in the liquidation documents. The liquidators must also represent the company in court if any court action is initiated against the company by the creditors.
Maintaining UBO Registers
The Cabinet Decision No. (58) of 2020 on Ultimate Beneficial Ownership (UBO) applies to companies undergoing liquidation in the UAE. As per relevant clauses of this law, the liquidator is in charge of handing over the company’s Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the relevant licensing Authority. Apart from that, the liquidator also has the responsibility of maintaining the RBR and PSR for at least five years from the date of liquidation.
Request Removal of Company Name
After performing all the necessary procedures for winding up a company in the UAE, the liquidator should present a final report to the regulating Authority. The report may contain a declaration of the assets and settlement of all liabilities. After presenting the report, the liquidator is required to request the Authority to remove the company from the Commercial Register. To successfully complete all the steps of the process, the management should consult with companies that ensure the best company liquidation services in Dubai, UAE.
Hire ADGM-Registered Company Liquidators in the UAE
Company liquidators in the UAE play a key role in winding up a company, as appointing a liquidator is a mandatory requirement. Company liquidation in the UAE is an elaborate and complex process for which business owners need to appoint experienced audit firms. Jitendra Business Consultants (JBC) is a leading provider of company liquidation services in the UAE with years of experience.
JBC is a part of Jitendra Chartered Accountants (JCA), which is an audit firm based in Dubai, UAE, since 2001. Mr Jitendra Gianchandani and Ms Divya Gianchandani, both founders of JCA and JBC, are officially registered with ADGM as a company liquidators. We have an impeccable track record of winding up companies in free zones, LLCs on the mainland and offshore companies. Avail of our services today to wind up your company in line with relevant laws and standard procedures.
