Liquidating a Company and Filing Bankruptcy in UAE

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Liquidating a Company and Filing Bankruptcy in
UAE

• Hhs lawyers and legal consultants

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• The UAE Bankruptcy law has recently seen a
  change. In the past insolvencies required
  companies in the UAE to undergo consensual
  restructuring of a debtors liabilities. In
  addition, largely untested legislations
  previously pushed companies and their partners
  towards restrained insolvencies owing to limiting
  procedures. The new bankruptcy law is a
  game-changer, bringing with its major changes
  which will positively impact businesses.

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Bankruptcy Law- an overview

• The new bankruptcy law comes as a sigh of relief
  for a large number of companies. The legislation
  under the new law will be established for all
  commercial companies except for those which were
  registered under the legislation of free zones.
  Companies not solely owned by the state, are
  exempt from the bankruptcy law and hence will not
  gain with from the new law.
• The new law has piqued the interest of budding
  entrepreneurs who now envision sustaining their
  businesses for the foreseeable future. 

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Bankruptcy law for liquidation in UAE

• The latest law has eased the woes of businesses
  about bankruptcy and liquidation. This new law
  will act as a catalyst for the companies and will
  help them promote themselves. The new law aims to
  support businesses that are under pressure or
  distress, by focusing on restructuring company
  debt and allowing them to deal with the failure
  of a business with ease. For companies to benefit
  from the new changes to the law, companies will
  need to adapt as per the legislative changes,
  which in turn will better their services.

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Limitation of bankruptcy law

• Secured creditors are not bound under the
  proceedings of this law, which may prove to be a
  hurdle in the effectiveness of this new modern
  bankruptcy law. It may limit the number of
  debtors seeking protection in large financial
  transactions under the bankruptcy law.

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Failing to File Bankruptcy in the UAE

• Individuals failing to file for bankruptcy or
  failure to file within the allowed time frame,
  will not be considered a criminal act. This is to
  reduce additional pressures on companies facing
  bankruptcy. The law states that it is the
  responsibility of the shareholders of a company
  to decide the commencement of a preventive
  composition or a bankruptcy process.
• Managers or directors facing financial issues can
  now work towards taking appropriate steps towards
  saving their companies without fearing criminal
  sanctions.
• If your company can no longer support itself or
  is in debt, you can file for bankruptcy or choose
  to liquidate the company. Liquidators in Dubai
  are known to process such transactions
  professionally with minimal distress to owners,
  directors or managers.

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Thanks

• HHS Lawyer is a leading international firm in UAE
  well known to undertake matters like liquidation,
  bankruptcy or more. With a trustworthy track
  record, HHS Lawyers can assist with the
  deregistration process in accordance with the UAE
  law.
• Phone  [phone] Email  info_at_hhslawyers.c
  om
• Source Url https//hhslawyers.com/blog/liquidati
  ng-company-filing-bankruptcy-uae/