Liquidation Services
We have a team of highly experienced professionals who has much experiance on various types of liquidations.The setting up of a company requires a lot of hard work and planning. If the proper time is not put in the incorporation process, the company may start to dwindle after some time of its setup. Various factors like change in the business environment, a shift in customer preferences, technological advancements, present business environment etc .will hugely affect the company and how it does business. If a company does not take into consideration these factors, after a specified duration, it will have to liquidate itself and close down.
Starting a business does not always result in the expected profits. Business environments change; partners become involved in other projects; owners may need to recover their investment for some reason. There are many reasons for liquidating a Company. It is not as simple as disconnecting the phone and locking the door. There are legal requirements in place to guarantee that all involved parties are fairly treated and that required fees are paid as well as dues & liabilities settled.There are regulations in place governing company liquidation. Failure to observe the regulations can result in penalties.
Company liquidation may be a very complicated process in the company to be liquidated a big one and has many shareholders. In such a case, it is always advisable that you take the help of a consulting firm that will help in the liquidation process in the Sultanate of Oman. We are not only help in the liquidation of the company but will also help you to establish a new company and also provide management consultancy services so that the company does not face any problems in the future.
If a company has taken too many debts and is unable to repay them, liquidation of a company is the last resort left for such debtors. Sometimes owners may decide that it is not profitable to continue with the business and hence needs to be closed down. In such cases, the creditors take steps to get their money back. All the assets of the company such as land, raw materials, stock, machinery etc. are sold off to a potential buyer. The money obtained from this transaction is then used to repay the creditors. This selling of the inventory, raw materials and assets of the company will disband the company, and the company will not be able to do any business in the future.
There are many reasons which can give birth to a scenario where company liquidation becomes very important such as:
As soon as the above symptoms appear in the company, the company must conduct an audit which will allow to uncover and understand the cause of such loss.
There are two different kinds of liquidation called voluntary and compulsory liquidation that are both explained below:
1. Compulsory Liquidation
This kind of liquidation occurs when the owner or shareholders of a company decides that the business is no longer fit to run. By choosing to voluntarily liquidate, they eliminate the chances of them to be liquidated forcefully and falsely accused.
The owner or shareholders will conduct a meeting with creditors. The people decide which liquidator should handle the liquidation process. The terms with regard the distribution of assets are also discussed and agreed in this meeting.
2. Voluntary Liquidation
This kind of liquidation is an order from the court. Most likely, creditors file a request for a certain company to be liquidated. It is believed that it is risky when the court brought an owner or the shareholders to the court because of the request of the creditors. There can be wrong accusations that can happen.
Generally, this happens to businesses that are having problems to pay their dues. Creditors can be pushed to their limits by the continuous non-payment of a company. The reason why it is called compulsory is that the owner or shareholders of the company do not decide for their company to be liquidated but the court itself. It is a demand or an order from the court.