Liquidation is a very common term in business law, finance and economics for liquidating a company. Here's some information you need to know about company liquidation, in terms of process, timeframes and potential costs.

What is the meaning of Liquidation?
The term ‘liquidation’ is a process of closing down a company for a purpose of distributing its assets. You may say company liquidation in Dubai is a formal procedure, in which a limited company is closed down by an appointed licensed insolvency practitioner (liquidator). Liquidation is when the company’s assets are sold (liquidated) and any realization of revenue is redistributed in order of priority amongst creditors and/or shareholders.

What Happens When a Company Goes into Liquidation?
As a company goes into liquidation, it ceases to trade, staff will be made redundant. Thus the company itself will cease to exist as a legal entity. Liquidation process is not a tedious one, and the process follows some crucial steps. It depends on the conditioning and multiple other factors.Here are the three types of liquidation that you should have knowledge about:

Voluntary liquidation
Creditors’ voluntary liquidation
Compulsory liquidation

How to Perform liquidationAudit?
ebs is an authorized audit firm that helps you determine exact requirements of a specific region. They have professionals to help you out. It is a mandatory and legal requirement that a company liquidation audit in Sharjah should be performed if the company is to close its offices or cancel their licenses in Dubai or any of its free economic zones, i.e. Dubai Airport Free Zone Authority (DAFZA), Jebel Ali Free Zone Authority (JAFZA), Dubai Economic Department (DED), Dubai Multi Commodities Center (DMCC), and Dubai Silicon Oasis (DSO).

Visit at https://www.ebs.ae/liquidaion-audit/