So, today we will talk about the things you should not forget when you close down the business and liquidate your company.
When you finally decided to close the business, which is not an easy decision of course, closing your business is not as simple as turning off the lights and locking the door behind you. Thought in most UAE free zones the process is very simple, especially when you don’t have employees, in some cases - the process can take months. Failing to properly close a business can have long-term ramifications so you need to be prepared financially and emotionally.
Closing a business is a multi-step process that varies emirate-by-emirate based on the business structure – LLC, free-zone, offshore company. There are general guidelines to follow, however, for how to close a business. Having a checklist ensures the process goes smoothly and lets you walk away from your business free and clear. Let’s begin.
When closing your business, make sure you are making the right decision. Whatever reason stands behind it, financial, retirement or starting a new venture, get help or advice on how to fulfill all the formalities correctly, at least consult with your company’s Registrar.
After you spoke with the Registrar, and understood the time frames, we recommend to set a closing date for your business. Setting official closing date will help you to properly plan your business's closure. The earlier you decide upon the closing date, the earlier you can start letting suppliers, employees, customers and other parties know about the procedure and prepare for it.
Do not forget to close the bank account first. Sometimes it takes two to three weeks, as you first need to fill in the application, withdraw all you balances, hand over your cards and cheque books. Request to get an account closure letter that states that accounts have been closed and that bank has no liabilities against the company.
Do not forget to give timely notice to your employees. If your business has employees, you must take care of them and help them move from your company’s visas and employment contracts. As per Immigration rules, you need to cancel all employee’s visas, pay their salaries, and then apply for company closure. In some emirates and free zones, where applicable, once you cancelled all employees’ visas, you may apply to get the security deposit back for each employee. But again, that rule applies only if you paid employee deposit at the time of their recruitment.
Do not forget to inform your suppliers and customers, that your business is closing and mention the date from which you'll no longer need the services of suppliers. Pay all the outstanding amounts to them and be friendly, as they all ready know and trust you, who know maybe they will be you suppliers and customers in your future business as well.
Do not forget to end lease agreements and give prior notice to your current landlord. Depending on the conditions of your lease, you may still need to pay rent and other costs up until the end of the lease term. You may be able to avoid paying these costs by transferring your lease to a new tenant in case you sell your company. If you're unsure of the conditions in your lease agreements, you should contact your lawyer for professional advice. In case you return the office in good condition, you will not need to spend money on touch ups and will be able to get your office security deposit back.
Do not forget to prepare for your business assets sale. Think of managing your business assets when you are closing your business. Business assets can include: tools, equipment and machinery, cars, property and premises, including land or buildings business vehicles furniture, fixtures and fittings, domain names, intellectual property such as patents or trademarks, licenses and permits.
Do not forget to pay all outstanding bills to service providers by disconnecting services and collecting security deposits where applicable. Be it telephone, fax, internet, utilities, electricity, water or cooling get in touch with relevant authorities and inform that you want to close business. Cancel any licenses and permits, web hosting and domain names, shut down your social media channels. Check if there are any other requirements you need to take care of within your emirate to ensure you successfully meet all your obligations when closing your business.
And of course, do not forget to look after yourself. Closing your business can be an emotional time. After all, you’ve probably put countless hours, money and energy into setting up and running that business. But don’t worry, whatever happens, happens for the best.
That was the last video of Module 11. You finished the main course on How to start a business in the UAE, and now you know all the possible aspects of starting your business in the UAE.
But that’s not all, as promised we prepared something special, one more Bonus module on Marketing, that would be really helpful for you as a starting point to realization of your business in the Emirates.
Remember marketing is food not a medicine for your business. All successful companies never stop marketing, which covers advertising, PR, promotions, sales, business automation, funnels and tunnels, and much-much more. It’s another very interesting part of business that you will enjoy going into.
As we live in the 21th century, the tools that appear every day allow any person in the world to be a successful entrepreneur. Modern systems and services allow you to automate the tasks and routine, and save your money on hiring real marketing experts. Remember – knowledge makes you money. When you know what to do and how to do it, its half of success. The second half is realization of all the plans. So, without any further ado, let go and dive into the most up-to-date information that can help you change your business and life forever.
If you want to know more about Dubai freezone company formation, feel free to get in touch with our professional consultant team and we would be delighted to assist you and help you to compare Dubai freezone company setup costs and help you to find that free zone, which would suit your business needs the most.
Disclaimer: Business Boutique UAE-Consultants.com is not affiliated with any particular government or legal entity. Business Boutique does not give professional legal advice nor any other professional advice subject to a public office in the government. This article merely sets out a simple and basic idea as to the reasons of Dubai freezone company setup and Dubai free zone company formation cost. Business Boutique in no way holds nor imposes any official governmental or legal authority and the article herein is only to be taken as a guide. All further governmental or legal issues should be addressed to the corresponding authorities.
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