Company Liquidation in Dubai
Company Liquidation in Dubai: What are the 5 Checklists Before Liquidation?
Company Liquidation in Dubai and other Emirates of the UAE is mandatory for any kind of businesses if they have opted to stop their operations. Cancelation of licenses and all the permits which are related and associated with the business must be cancelled too. In this blog we will give a brief about Company Liquidation in Dubai and other Emirates of the UAE.
What are the different steps & procedures for cancelling license of entities in the UAE?
Company Liquidation in Dubai and other Emirates in the UAE can be progressed with the notice of Company’s Dissolution & an appointment of a Liquidator.
As a first step towards Company Liquidation, the company has to pass a resolution for dissolution (closing) of the company in the shareholders meeting.
This resolution has to be attested by Notary Public in the case of Limited Liability companies registered in the UAE. If the shares holders are not available in the UAE, then the resolution has to be notarized and attested from the UAE embassy of that country and has to be attested and legalized from the Ministry of Foreign Affairs and Ministry of Justice in UAE.
In case of the companies registered in most of the Free Zones attestation from Notary Public is not required. In this statement of resolution, the appointment of liquidator should also be included with the name of the liquidator along with their address. Further, in the case of sole establishments this step is not applicable.
What are the documents required initially for Liquation of Company in Dubai and other Emirates of UAE?
- License Copy with all three pages
- Memorandum of Association Copy with all the changes
- Power of Attorney if any
- Shareholders Resolution
- Shareholders passport Copy
- Emirates ID Copy of the shareholders
- Deregistration Application Form
Once the above documents are submitted and the initial payment is also done to the concerned Authority (Department of Economic Development), a liquidation certificate (primary) will be issued. It is a documentary evidence from the Authority for the company to proceed with winding up of a company.
Once the liquidation certificate (primary) is obtained the company can proceed for advertisement in the newspaper. The advertisement period will be forty-five (45) days’. In the case of LLC companies four advertisements are required to publish in Arabic newspaper.
What should you do during the Company Liquidation Advertisement?
The below mentioned action can be taken during advertisement period of the Company Liquidation in Dubai and other Emirates of UAE:
- Clearance from Immigration Department.
- Clearance from Labour Department.
- Clearance letter from Electricity and Water Departments.
- Clearance letter from Telecom Authority (DU or Etisalat, etc)
- Clearance letter from Landlord regarding lease agreement.
- Bank account closure letter.
Once the notice period is over the following documents are to be submitted along with the above-mentioned documents:
- Liquidation report
- Original copy of Newspaper advertisement
Once the above documents are submitted, the authority will review and upon approval of the same final payment to the authority has to be done. Thereafter, the final certificate called License Cancellation Certificate will be issued by the concerned Authority.
What is Company Liquidation?
Company Liquidation is a process where a company takes a decision to wind up their business operations as it can no longer continue the business operations. When a company undergoes liquidation, they sell their assets so that they can pay back their debts/liabilities/obligations. The amount that is collected after selling the assets is shared by the shareholders of the company.
There are different kinds of companies in the UAE, such as LLC, Sole Establishment or a Free Zone. When a company is being liquidated in the UAE the assets and properties are distributed to the creditors, shareholders of the company.
What re the Five Checklist before liquidating your Company in Dubai and other Emirates in the UAE?
- Settling down all utility bills
- Paying off Telecommunication Bills
- Closure of Bank Accounts
- Preparing the Final Audit Report
- Cancellation of all the visa under the license
Emirates Chartered Accountants Group supports businesses if they have opted to stop their operations to cancel their licenses and all the permits which are associated with the business. The Company Liquidation team possesses practical experience in the field of liquidating a company in Dubai and other emirates of UAE.
Get in touch with our team for an initial consultation on how to proceed within the most appropriate proceedings for Company Liquidation in Dubai and other Emirates of UAE. We assist businesses in the UAE in both Mainland and as well as in the free zones for Company liquidation.
Book a Free Consultation for Liquidation of Company in Dubai & other Emirates of UAE