Liquidation of a company in the UAE or winding up of a company is an activity whereby the operation of a company and its existence will come to an end. The Liquidation of a company in the UAE or winding up of a company is commonly known as the closing of a company or the cancellation of a company in the UAE.
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Step by step process of company liquidation in the UAE
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If the shareholders are not available in the United Arab Emirates (UAE), then the resolution / Power of Attorney has to be notarized and attested from the UAE embassy of that country and has to be attested and Legalized by the Ministry of Foreign Affairs and Ministry of Justice in the UAE. In the case of companies registered in most of the Free Zones attestation from Notary Public is not required. In this statement of the resolution, the appointment of the company’s liquidator should also be included with the name of the liquidator who is involved along with their full address. Further, in the case of sole establishments, this step is not applicable while liquidating a company.
Once the above-mentioned 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. The liquidation certificate is issued as a piece of documentary evidence from the Authority for the company to proceed with the winding up of a company in the UAE.
Once the liquidation certificate (primary) is obtained the company can proceed with the advertisement that is supposed to publish in the newspaper. In the case of Limited Liability Companies and some of the Free zone companies such as Dubai Creative Cluster Authority, etc require forty-five (45) days’ notice of liquidation advertisement in the public newspaper. In the case of LLC companies, four advertisements are to be published in the Arabic language./p>
Once the notice period is over the following documents are to be submitted along with the above-mentioned documents:
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.
Emirates Chartered Accountants Group ensures clients apt procedures for Liquidation of Company in the UAE. Get in touch with our team for an initial consultation on how to proceed with the most appropriate procedure.
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People usually ask
The liquidation process may vary from a different jurisdiction. In mainland to initiate the process of liquidation, all the shareholders including the local sponsor have to sign the board resolution in front of the public notary. Then the DED has to approve the process.
To order close / liquidate the company all the employee visas have to be canceled and get a clearance letter from the immigration and labor dept. once we get the clearance letter then only we can wind up the company.
All the employees' visa has to be canceled before liquidating the company. If not the company cannot complete the process of liquidation.
The cost of the liquidation process varies from a different jurisdiction. In the mainland, it will cost AED10,000 to complete the whole process and in some free zones, it will cost only AED 6,000/- onwards.