Liquidation of free zone company and settlement of a debt

Question

Q: My FZ company has lost its major clients. It has one creditor with. What are my options to close the company down and what are my liabilities regarding the debt? A: There are two options. Pay the outstanding balance. Cancel the trade license before the creditor initiates a civil/criminal case…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for getting in touch with me on this.

With respect to your situation, it appears that there are two options with you, namely:

1- Pay the outstanding balance to the creditor and clear the account

2- Liquidate the company and cancel the trade license before the creditor initiates a civil/criminal case against you.

If you are able to liquidate before the creditor's court case, then you won't have any liability and will be able to escape this unfortunate liability.

I trust you will find this helpful.

Feel free to get in touch with me on 052-9495731 or email on hari.wadhwana@gmail.com if you wish to liquidate the company or seek further information.

Regards,

Hari Wadhwana

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