Company Liquidation in
Dubai, UAE
Sometimes it is a good idea to move from one place to another to get the best. Good things come from good decisions. If you have a business in Dubai and you plan to leave Dubai, that business can be a problem. Closing/winding up a company in Dubai is not that easy and you have to go through a series of procedures. The process of winding up business activities is called Company Liquidation in Dubai, UAE.
Company liquidation in Dubai occurs an LLC (or a branch thereof), a single business, or a free zone company closes its doors and distributes its assets and property to its creditors and shareholders (owners).
Company liquidation is necessary when a company lacks the liquid funds to carry out its daily operations or when investors are not paid. Also, when the company commits an offense for which a regulatory authority or agency responsible for its industry has filed suit, are reasons for liquidating your company. Companies in Dubai, United Arab Emirates, have the option of voluntary or forced liquidation. One of the procedures of Dubai’s corporate liquidation services is the revocation of trade licenses.
You can liquidate your company by following procedures:
- Create an agreement/resolution/power of attorney to liquidate the company together (with your shareholders).
- Appoint a liquidator.
- Get an acceptance letter from the liquidator as the first step of liquidating your company.
- Get your agreement attested by the public and your shareholders.
- Submit all the necessary documents to the authority to start the liquidation process.
- Advertise your liquidation decision in local as well as international newspapers (if your company is of International scope).
- Issue a labor clearance letter to make sure all the workers and laborers working in your company are satisfied with your decision and nothing is pending from them.
- Get an Immigration Clearance.
- Get customs (tax) clearance.
- Get a bank account closure certificate.
- Get clearance from all the legal authorities and government organizations.
- Submit a final liquidation report with all the clerances attached.
- All set.
After processing your liquidation application and report the authorities will remove the trading name of your company and stop every business activity of your company.
If the shareholders are not available in UAE then the agreement/power of attorney will get attested by the embassy of that country. Companies that are registered in free zones are not required to get attested by the public.
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- Obtain a duplicate of the license.
- Copies of the Memorandum of Association, updated to reflect any modifications
- Power of Attorney (if applicable)
- The resolution of the shareholders
- Copies of stockholders’ passports
- Copy of Emirates ID
- Application for Deregistration
When the documentation as mentioned earlier and initial payment are submitted, the principal liquidation certificate is issued (the Department of Economic Development). The Authority must provide a liquidation certificate for the business to wind down in the UAE.
- BIS’ approval
- DOL approval
- Electricity and water have given the all-clear.
- Letter from Telecom Authority (DU or Etisalat, etc.)
- Account closing letter
- Disinvestment of assets
- Putting together paperwork
- Debt collection and the payment of creditors
- Involvement with the Notary and the Government
- Contract termination
- Payments have been made in full.
- Preparation of paperwork
- Accounts for the liquidation of the company