What is company liquidation?
Company liquidation is the way toward closing an LLC, canceling the trade license, and distributing the organization's assets and properties. After liquidation, the organization will no longer exist.
According to UAE laws, there are two types of Company Liquidation:
1. Voluntary Liquidation
The first category can be defined as the decision made by all shareholders concerning the voluntary liquidator. In order to wind up an organization, no money has to be paid to creditors as a result of the loss of business and loss of profit.
2. Compulsory Liquidation
In a compulsory liquidation, assets are distributed to creditors, and the debts or contributors are paid based on the priority of claims.
