Benefits of Voluntary Company Liquidation ADGM
If you are planning to shut down the operations of your company in the Abu Dhabi Global Market (ADGM), voluntary liquidation is the best exit strategy. The process of voluntary company liquidation in ADGM commences when directors and shareholders agree that the company is unable to continue its operation and must be legally shut down.
However, before considering voluntary liquidation as an exit strategy, you need to be aware of its merits. However, the process can be initiated only after appointing an ADGM-approved liquidator.
Go through the below blog and understand the top benefits of carrying out voluntary company liquidation in ADGM:
Exit the Business Legally
In the past, business owners used to flee the country overnight when going ahead became tough. They used to abandon their company, leaving the employees and creditors in the lurch. However, voluntary company liquidation in the UAE provides them with a legal option to exit the operations. Now, directors can shut down their ADGM company by satisfying the interests of all the stakeholders involved.
No More Debts after Liquidation
ADGM voluntary liquidation frees the shareholders from the pressure of mounting debt. Once your ADGM company is dissolved through liquidation, the sale of its assets will be distributed to creditors. It allows you to pay off all the debts and move ahead with new ventures if you wish.
More Control for Directors
There are two types of liquidation in the UAE: voluntary liquidation and compulsory liquidation. Under the compulsory liquidation process, a court issues an order for liquidation following a petition filed by a creditor. The directors will not have much control over the process of compulsory liquidation.
On the contrary, they will have more control over the voluntary liquidation process. The directors can decide when to start the process of company liquidation in ADGM. However, they need to appoint ADGM-approved liquidators to initiate the process.
An End to Legal Action
Once an ADGM-registered company is put under liquidation, legal actions against the entity will be paused. Being free from legal actions allows the directors to shut down their ADGM company peacefully.
Owners Need Not Oversee the Process
Liquidating a company in ADGM is an elaborate process. The process involves complex requirements such as visa cancellation, obtaining clearance from various authorities, and regulatory requirements related to Economic Substance Regulations (ESR), Value Added Tax (VAT) Deregistration, and Ultimate Beneficial Ownership (UBO) etc.
However, shareholders or directors need not oversee all these procedures. ADGM-registered liquidator can oversee the entire process of liquidating the company on your behalf. Once the board resolution is passed, all the powers of the directors shift to the liquidator. The liquidator will oversee the entire process of shutting down the ADGM-registered company.
Protects Employee Rights
When you liquidate your ADGM-registered company, it is mandatory to cancel the visas of all the employees. However, the process of voluntary liquidation ensures the protection of their rights. The ADGM company employees will get their redundancy pay, other entitlements and any pending salary after the liquidation is completed. The process can be finished quickly by hiring company liquidators approved by the ADGM free zone authority.
Relatively Low Costs
Directors may worry about the cost of company liquidation in ADGM. However, the cost of shutting down a company ADGM is relatively low. Apart from the fee charged by the ADGM-approved liquidators, you need not worry much about the cost of closing down the company.
Peace of Mind for Directors
The process of voluntary compulsory liquidation in the UAE can be highly stressful for directors of the company. However, voluntary liquidation enables them to peacefully close down the company in an organised manner. Once the company is deregistered by the authorities, the directors can pursue new ventures or employment.
Hire ADGM-Approved Liquidators to Wind up your Company
The process of liquidation is lengthy, and the owners and shareholders need to find the top company liquidators in the UAE to make it hassle-free. Mr Jitendra Gianchandani and Ms Divya Gianchandani, both founders of Jitendra Chartered Accountants (JCA), are officially registered with ADGM as company liquidators.
JCA has been offering audit and liquidation services in the UAE for more than two decades. 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. JCA’s dedicated company liquidation services in the UAE are key to ensuring that your company is wound up in the best interests of the creditors, employees and authorities.