Company Liquidation
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Company Liquidation in Dubai, UAE
Confident Business LLC Services offers Company liquidation services for multiple business establishments like LLCs, offshore establishments and Free Zone companies in Dubai, UAE. Company liquidation in Dubai and UAE is the process by which a company winds up its operation and activities when it faces an acute financial crisis and is unable to manage its existing debts.
The process involves complicated documentation and negotiations with parties involved and other government agencies. De-registration is a very important aspect connected with the Company liquidation process. The term company liquidation is known by other names like cancellation of the company or dissolution of the company etc. Company liquidation in Dubai or UAE can be a time-consuming and tedious task if not managed in the most professional and dedicated manner.
Providing best company liquidation services in UAE, Confident Business LLC undertakes the liquidation process of your business. Prior to the company liquidation processes such as trade license cancellation and business wind up, you are required to meet certain important tasks such as closing of bank accounts, settle down utility bills, get certificates from concerned Government authorities, prepare final audit reports, visa cancellation, etc. You can entrust Confident Business Setup Services LLC for company liquidation in Dubai to simplify the liquidation procedures and avoid extra expenses. We assist entrepreneurs in the liquidation of both mainland and freezone companies in UAE.
Get in touch with Confident Business LLC for your company liquidation in UAE!
“Liquidator” is the name assigned to the person or the individual who is in charge of the process of company liquidation. The process is classified into 2 types and they are Voluntary and compulsory liquidation.
The company shareholders agree to initiate company liquidation when the creditors are left unpaid. This type of company liquidation is called voluntary liquidation. Here creditors are given precedence.
In compulsory liquidation, the company liquidation process is initiated by the court and not by the shareholders of the company. The company’s assets are dispersed among the creditors and shareholders on precedence basis.
It would take around 2 to 3 months to accomplish the Company liquidation formalities of a Limited Liability Company based in the UAE. 2 to 3 months’ time is the minimum duration provided the company is free of dues and devoid of any claims. An objection from someone or an external entity on any issue can delay the formalities.
- The company is obliged to conduct a meeting of the shareholders. In the meeting the shareholders should take the decision to close the company by approving a resolution.Attest the resolution from a notary. The attestation is not mandatory for most of the companies that are established in the free zone jurisdictions.
- Pay off the employee salaries and cancel all immigration visas. The company is required to obtain clearances from the concerned authorities.
- Pay off the remaining debts and settle all the dues.
- Next comes the role of a liquidator. A liquidator must be assigned to carry out the entire company liquidation process.
- Get ready with the entire documents and submit them to acquire the approval for initial liquidation.
- A company liquidation advertisement is published in the local daily. The advertisement is run for 45 days. Wait for any response in the form of objections.
- If the liquidator finds no objections, he shall issue the Liquidators report.
- Discontinuation of partner visas followed by document submission.
- Pay the fee involved for the cancellation of trade license at the Department of Economic Development (DED).
- Discontinue all corporate bank accounts owned by the company.
Both mainland and free zone company dissolution need the same set of documents. The documentation at times varies with the type of free zone jurisdictions. Here are the important documents required for the purpose of company liquidation.
- License (copy)
- Power of Attorney
- Shareholder passport (copies)
- Re-registration form
- Memorandum of Association (copy)
- Emirates ID (copy)
The company liquidation formalities are almost the same for all free zone companies. But there are certain differences for some free zone jurisdictions.
Board resolution for company liquidation.
- Assigning a liquidator.
- Liquidation letter
- Settlement of dues and fines with free zone
- Free zone authority clearance
- NOC from Business Unite
- CLD Government Section Clearance
- License (original)
Documents required for Company Liquidation in Dubai
The company liquidation in Dubai necessitates a number of documents. The company liquidation services in Dubai can help you in obtaining most of the documents related to winding down.
- Copy of business license of the company
- Copy of MOA
- Copies of passports of the owner/ shareholders
- Copy of Emirates ID
- Power of Attorney (POA) if required
- Shareholders’ resolution
- Application form (s)
Actions To Take
Company Liquidation Process
The liquidation process commences with selecting an approved company for liquidation services in Dubai. The liquidator, the agency handling the closing down the process, would manage the process on behalf of the owner and shareholders. Selection and appointment of the liquidator are at the discretion of the company/ board members/ shareholders in the case of voluntary liquidation. In the case of compulsory liquidation, the authority or the court will appoint the liquidator.
Board directors’ meeting may not be required if a single person owns the company. Otherwise, the majority of the board of directors has to decide upon the winding of the entity. All the board proceedings and final resolution has to be documented. An authorized public notary must attest to the document to make it authentic.
The Department of Economic Development (DED) is the authority for all the business-related approvals in Dubai. A liquidation form signed by the authorised person has to be submitted to the DED for approval.
It is the responsibility of the entity to publicise the decision to close down. On receipt of approval for dissolution, the company must publish the decision to liquidate in a local Arabic newspaper, at least 45 days in advance from the date of liquidation. This will allow enough time for the moneylenders to stake their claims.
The selected company liquidation services in Dubai must accept the offer from the company to undertake the liquidation process forward. All the approvals and orders have to be documented. The board should inform the liquidator in advance about the decision to appoint them. To avoid last-minute dilemmas.
All the visas associated with the company have to be cancelled within the 45-day period provided by the DED. This includes visas of employees, shareholders, and family members. The Ministry of Labour as well as the Ministry of Immigration issue NOC subsequent to the cancellation of the visa.
All the dues of the company to departments including the telecommunication department have to be paid. The department would issue a NOC on clearing the dues. This NOC is another mandatory requirement for company liquidation in Dubai.
The company liquidation services in Dubai or the liquidator submits an audit report which would affirm that there are no pending dues. All the debts, payments and loans must be paid in the given timeframe to avoid delays.