Closing company in JAFZAincluding JAFZA free zone liquidation and JAFZA offshore company liquidation, a company does not just sell its assets and think it can immediately close down. In this article, we’ll provide you with information regarding the process of the closing company in JAFZA. Let’s start!
Consult with Lawyers and auditors in JAFZA for Liquidation Report
Before you will be able to undergo company liquidation in JAFZA, there is a need to consult first with your attorneys and approved auditors in JAFZA for liquidation reports. Also, there is a need to inform all creditors of the company regarding the intention of liquidation.
An attorney and an approved auditor in JAFZA will be able to help you with the process of selling the company’s assets. The professionals can also help you make sure that you are complying with relevant regulations on the winding up of businesses.
Read also: Liquidation Process for A Company with No Assets
Make sure that you have a complete and accurate count of the company’s inventory. You would want to make all items look very appealing to potential buyers so you will be able to sell them. As you sell a car, your priority is making it look best in order for you to get back the money you have put into the car and more. Likewise, your company may be closing down but you still want to make sure assets look absolutely incredible or at least presentable in order to sell them. You can also provide records and warranties for any equipment or machinery that you plan to put up for sale.
Hire a professional appraiser
Set the prices for the items you’ll be selling. This is best done with the help of a qualified professional appraiser. Remember that liquidation of company assets often gives the business at least twenty percent less in comparison to the retail value. Working with a professional appraiser can help ensure that you estimate your business assets’ end sale amount. Get the approval of the board of directors and of creditors to deduct costs from the sale as you figure out the net sale income.
Determine the kind of sale
You have a couple of options for the sale of the assets. You can choose in having any of the following:
- Negotiated sales – this is where the buyers include suppliers, landlord of business premises, customers, and competitors. For this specific kind of sale, it is not too common; however, it can be very useful as a business needs financial help that is immediate.
- Online sale – an online sale will be an excellent option for the business, most especially if you fully understand the legalities and rules that are associated with selling over the internet. This kind of sale right now is extremely popular.
- Consignment sale – for this kind of sale, this is an alternative that is great if time isn’t the factor for the liquidation sale. If the business isn’t insolvent and is able to cover for the appointment of liquidator JAFZA cost, then you will be able to give the assets of the business to local dealers that can sell them and pay your business following the sale of items.
Read also: What are the Roles and Duties of a Liquidator?
Approved Liquidators in JAFZA
If you are considering going through company liquidation in JAFZA, take note that you can liquidate the business without declaring bankruptcy. We suggest you keep your books of accounts organized in order to help you be on top of all finances of the company. Approved liquidators in JAFZA like Farahat & Co will also help you with Company Liquidation in Dubai apart from providing you with a liquidation report that is needed for the completion of the liquidation process.
Read also: How to Liquidate a Company in DIFC?