Reorganization of a Company in Dubai
Reorganization of a Company in DubaiUpdated on Wednesday 27th June 2018
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A company reorganization in Dubai may intervene for varied reasons: management restructuring, changing the business direction, developing other activities, changing the overall business structure. In any case, it is suggested to ask for legal advice in order to understand the steps and the methods involved. Our Dubai lawyers are at your disposal and can offer information and legal guidance if you want to reorganize the business in Dubai or if you want to register a new company in the city.
Steps involved in a company reorganization in Dubai
Facing challenges may stand at the base of a company reorganization decision. There are many companies in Dubai which develop in a fast manner and turn into another business structure. Limited liability companies can direct the operations to a joint stock company, or sole proprietors can decide for a limited or general partnership. These are cases linked to a company reorganization, but there are also other situations for which restructuring is necessary or recommended, such as:
- • changing the board of directors;
- • implementing other departments if the company developed in a certain direction (for instance, creating a digital department);
- • initiating a bankruptcy process
- • changing the operations of a company;
- • changing the marketing strategies;
- • firing underperforming employees.
When deciding for a company reorganization in Dubai, it is suggested to comply with the applicable legislation (particularly the Companies Act and the Commercial Code) and to adopt the suitable solutions for future developments and performances. You can talk to our Dubai attorneys in this sense.
The following video explains how the reorganization of a company is made in Dubai:
Identity change as part of a company reorganization
If the business operations will be placed in other fields of interest, the owners can decide on a name change, meaning that the Articles of Association must be modified. The next step is to officially announce the Dubai Trade Register for such amendments as soon as the new name and activities have been decided. In case of bankruptcy, the problematic company can transfer the assets to another corporation and legally offer the rights of business in this sense. The transferred shares/bonds can be used by the other enterprise and its rules, including the ones linked with the business name.
In order to detect the vulnerable departments in a firm, and to determine the profitable methods which can be implemented in a company in Dubai as part of a reorganization strategy, please feel free to contact our law firm in Dubai.