Businesses across the world are starting to feel the strain of COVID-19. Dubai and the UAE have implemented strict protocols and guidelines for the re-opening of businesses to help business owners, improve the economy and adapt to the current client. Currently we are in the Holy month of Ramadan (which is typically a quieter month on the business front). This combined with the limitations on the population’s movement; businesses are preparing for the worst. Some business owners are concerned that conditions might not return to “normal again” or they are apprehensive as to what will be a “new normal”. Food and beverage sectors e.g. restaurants reveal that it is now potentially costing them more to re-open their doors than it would to stay closed. There is the strain of operating costs to cover payment of salaries and they have no choice but to purchase products and supplies etc. to keep their businesses operating. Yet there are little to no customers and businesses are finding it hard to survive and keep their heads above water. We expect to see other businesses lose more money by being open rather than remaining closed over the next 1-2 months.
We are beginning to see an increasing number of enquiries regarding company closure. If you are facing difficulties perhaps it is time to re-evaluate your business and decide if closing a company is the right option. So, when is it a good time to draw a line in the sand and close shop? Below we list the processes for company liquidation and business closure.