Below are the 7 steps involved in the process of liquidation of Companies in Dubai Development Authority(DDA), previously known as Dubai Creative Clusters Authority (DCCA)
The Company should submit a notice to the DDA free zone authority mentioning, the reason behind the closure of the entity, and one month prior to the liquidation. Otherwise, there will be some charges for cancelling the lease agreement.
A board resolution (or Shareholder’s resolution in case of FZE/FZCO) for De-registration must be attested in front of free zone executives. If the shareholders are outside the country/the owner of the company is a foreign company then the resolution has to be notarized and attested from the UAE embassy of that country and the same has to be legalized from Ministry of Foreign Affairs, UAE.
The company must return all office keys and transponders (It is not applicable for the companies in Leasehold or Freehold).
he Company has to provide a copy of the New paper advertisement ie; in one in English and another one in Arabic.
Company Original license, Certificate of formation & Share certificates, Lease agreement and the Original Department of Economic Development License (if it is issued through DDA)
The following clearances are mandatory from different authorities;
Liquidation report must be prepared by a Dubai Auditor
Dubai Development Authority (DDA) was previously known as Dubai Creative Clusters Authority (DCCA) following law 10 of 2018. The Authority’s Center of Interest and its main aim is as mentioned below:
Dubai Development Authority (DDA) plays a major role in the progress and to bring an economical evolution in the region. It has already set its benchmark in maintaining the global standards for urban planning, real estate development, and municipal and business services. Dubai Development Authority (DDA) entitles a very comfortable business industry for the excellence of its stakeholders, which includes real estate developers and their strategic partners for contributing to bringing an economical evolution to Dubai. They emphasize in providing the best services, strategies & values to transform in excelling globally.
Company Liquidation is a process where a company takes a decision to wind up its 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. In other terms, Company Liquidation is also termed as winding- up of the business. Checklist before liquidating your company in the UAE
Liquidating a company in the UAE can encounter lots of challenges during the entire process and it is also a stepwise process where time is consumed gradually.
There are different free zones in the UAE and each of them has their own set of procedures to follow while liquidating a company in UAE Free Zone but almost all the free zones have the same set of procedures for Company Liquidation. The basic requirement for Free zone Company Liquidation are as mentioned below:
Emirates Chartered Accountants Group ensures clients apt procedures for Liquidation of Company in the UAE and Bahrain. We house a dedicated professional team for Company Liquidation Services where you can get in touch with our team for an initial consultation on how to proceed within the most appropriate procedure.
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