Dubai is an amazing place to visit. It is an equally interesting destination for business setup. Starting a business in Dubai makes people think of unfavorable conditions where god forbids what if they have to wind up. Well, relax! Dubai is a place where everything is simple for everyone’s good and so are we here to support you with the understanding and guidance on company liquidation in UAE.
What do you mean by company liquidation?
Liquidation is the closing of operations. When an LLC company, branch company, or free zone company shuts down or closes its function, it goes under liquidation or winding up the company. In this cancellation process, the assets are distributed across shareholders and creditors.
When do you need to liquidate the company?
The inevitable condition of liquidation happens when
- The corporation runs out of liquid funds
- A serious offense committed by the company
- The company is unable to pay the creditors or employees
- Owners quit the plan to continue the services of the company.
Steps involved in the closing company:
- Appoint a liquidator and share the name and address
- Share notice of company liquidation
- A shareholder meeting to pass the resolution for liquidation
- In case of LLC, resolution to be attested by Notary Public (not required for free zone company)
- Shareholders from outside UAE need to share resolution that’s attested and notarized by the UAE embassy of the respective country, followed by legalization by the Ministry of Foreign Affairs and Ministry of Justice, UAE
- Fees submission to Department of Economic Development (DED) for company liquidation certificate
- Settle all utility and other bills, cancel visas, ban account, etc. with license cancellation
- Post ad in 2 local Arabic newspaper
- 45 days waiting time for other companies to file a financial claim if any
- Submission of a newspaper ad and audit report to DED
- Clearance report from Ministry of Labour and Immigration, DEWA, Etisalat
The company liquidation in UAE is a tedious task that requires permission from various departments in Dubai. It Includes the immigration department, labor department, electricity, and water department, telecom authority, landlord, and banks.
To simplify your life and avoid any mistakes, Business Link UAE is here to help you by performing this process for your company. We carry years of experience as consultants in Dubai in setting up a business, pro services and licensing process and liquidation, and more. We believe in assisting our clients in each step to make them have a smooth stay in the country and leave the stress of documentation on us.