Process of Liquidating a Company in JAFZA

With JAFZA liquidation, including 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 company liquidation in JAFZA.

Let’s start!

Consult with Lawyers and auditors in JAFZA for Liquidation Report

Before you will be able to undergo company liquidation, 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 winding up of businesses.

You Maybe Interested in Reading: Liquidation Process for A Company with No Assets

Prepare the company 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.

Read More: How to Liquidate a Company in DIFC?

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 sale – 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 business needs financial help that is immediate.

• Internet 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 More: What are the Roles and Duties of a Liquidator?

Company liquidation 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

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Email: sales@farahatco.com

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