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Company Liquidation - Business Setup Dubai - UAE - Global Success Consulting
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COMPANY LIQUIDATION UAE
Company Liquidation in Dubai
Company liquidation is an important process that finalizes a business’s activity, and in Dubai, it involves a complicated legal process. Make sure your company liquidation is fast and stress-free by working with us.
Company liquidation, also known as dissolution or de-registration, is the closure of all a business’s operations. Liquidation involves paying off all liabilities to creditors and distributing any remaining assets to the company’s owner(s) and shareholders (if applicable).
Since company liquidation in Dubai can be complicated, it’s important to work with experts to ensure you minimize any possible financial losses and legal liabilities.
There are two types of company liquidation in the UAE; voluntary liquidation and compulsory liquidation.
Voluntary Liquidation
Voluntary liquidation is what it sounds like – it’s when the owners and stakeholders in the company agree to voluntarily bring the company’s operations to an end. This may be because the project was for a fixed period, the business is failing financially, the business owners want to go in different directions, or the company is merging with another.
Compulsory Liquidation
Compulsory liquidation is where a company is forced into liquidation due to external legal action. In most cases, this is due to the company breaking the law or having so many debts that it cannot be permitted to continue trading.
How to Liquidate a Company in the UAE
To liquidate a company in the UAE, regardless of whether it’s an LLC or a Free Zone Company (FZE), you need to designate a company to perform the liquidation for you (often called a liquidator firm). The process then differs a little – read on to learn how an LLC and how an FZE is liquidated.
How to Liquidate an LLC in the UAE
There are 8 key stages:
Board of Directors Meeting:
The minutes from a meeting of the board must be produced in which the directors declare the decision to liquidate the company and appoint a liquidation company. These minutes must be notarized.
Liquidator Letter:
The liquidation company must produce a letter that accepts responsibility for the company’s liquidation.
Liquidation application:
A submission of liquidation form must be submitted to the Department of Economic Development along with the appropriate fees to get a company liquidation certificate.
Newspaper notice:
A notice must be placed in a local Arabic newspaper that announces the liquidation.
Notice period:
Creditors then have 45 days to come forward to make a financial claim on the company.
Final liquidator report:
The liquidation company will submit a final report and a letter stating that no creditors have come forward.
All visas are canceled:
All visas associated with the company must be canceled.
Final certificate:
The DED issues a final liquidation certificate.
How to Liquidate an FZE in the UAE
There are 9 key stages:
Board of Directors Meeting:
The minutes from a meeting of the board must be produced in which the directors declare the decision to liquidate the company and appoint a liquidation company. These minutes must be notarized.
Liquidator Letter:
The liquidation company must produce a letter that accepts responsibility for the company’s liquidation.
Liquidation application:
A submission of liquidation form must be submitted to the Department of Economic Development along with the appropriate fees to get a company liquidation certificate.
Newspaper notice:
A notice must be placed in a local Arabic newspaper that announces the liquidation.
Notice period:
Creditors then have 45 days to come forward to make a financial claim on the company.
Final liquidator report:
The liquidation company will submit a final report and a letter stating that no creditors have come forward.
Clearance certificates:
Clearance certificates are obtained from the free zone authority business unit and CLD government section.
All visas are canceled:
All visas associated with the company must be canceled.
Final certificate:
The DED issues a final liquidation certificate.
Get the Support You Need
Our experts can help you determine how best to go about your company’s liquidation, ensuring you come out in the best possible standing. To speak to our experts about your company’s liquidation, please don’t hesitate to contact us.
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