Company liquidation is a hectic task. The liquidation of a company is not just about closing it down; there are many factors to be considered while doing so. Government authorities must be notified, business licenses need to be canceled, assets must be distributed, and several other legal obligations must be fulfilled. The legal formalities involved in company liquidation are often the most tedious part of the process. To ensure a smooth and compliant closure, businesses can rely on professional Company Liquidation Services in Dubai.
Company liquidation is a legal insolvency process that concludes the operations of a business. When a company goes through liquidation, its assets are sold to pay off its debts, liabilities, and commitments. Often known as ‘winding down’, the business license of a company is cancelled upon liquidation, its name is deleted from the Trade Registry, and the firm is considered to have ended.
When a firm can no longer pay its debts, it might be dissolved either voluntarily or forcibly by authorities. There are two types of company liquidation methods under UAE law:
The person who is in charge of conducting the liquidation process is termed the liquidator. The court or shareholders of an entity appoint a liquidator and it is dependent on the type of liquidation as well. Immediately after being appointed, the liquidator will provide a formal letter of acceptance. They will write a statement of affairs and a liquidator’s report once all of their responsibilities have been performed, which are required to perform the liquidation procedure.
The first step of company liquidation is to submit a notice to the Dubai Development Authority (DDA) mentioning the reason for liquidation.
The board resolution for de-registration of the company must be attested by the owners before the authorities of the DDA.
Place an advertisement in newspapers about the liquidation of the company in both Arabic and English language.
The original company license, Certificate of Formation & Share certificates, Lease agreement, and the Original Department of Economic Development License must be submitted to the DDA.
DED will provide creditors or clients with a 45-day notice time to wait if they have any financial claims against the company. Also, cancel all employee and partner visas and receive NOC from the Ministry of Labour.
Once the notice period is over, the liquidation report must be prepared by an auditor in Dubai.
The completed Report, along with all supporting evidence and the applicable cancellation payments, should be sent to the relevant Authority, who will evaluate it and, if accepted, issue a ‘License Cancellation Certificate.’
DED will provide creditors or clients with a 45-day notice time to wait if they have any financial claims against the company. Also, cancel all employee and partner visas and receive NOC from the Ministry of Labour.
Once the notice period is over, the liquidation report must be prepared by an auditor in Dubai.
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Almost every free zone has its own process for liquidating businesses. The most typical and standard approach for de-registrating a Free Zone Company in the UAE is as follows:
Minutes of a board of directors meeting declaring the firm to be liquidated and appointing a regulated liquidator AND send a notification to the Dubai Development Authority (DDA) explaining why the company is being liquidated.
A letter from the registered liquidator declaring the acceptance of responsibility for the company’s liquidation, as well as fees to be sent to the relevant free zone authorities
Place an advertisement in newspapers about the liquidation of the company in both Arabic and English language.
The Free Zone Authority will grant a 45-day notice period to wait for creditors or clients who have financial claims against the enterprise.
Cancel all employee and partner visas, receive NOC from the Ministry of Labour and Ministry of Immigration, and send all documentation to the Free Zone Authority, who will issue a final business liquidation certificate after verifying all of the documents.
Once the notice period is over, the liquidation report must be prepared by an auditor in Dubai.
There are certain things to look into when you decide to liquidate a company. Leaving the task to a professional who provides company liquidation services will be a wise choice.
Jumaira Consultants has been offering company liquidation services for over a decade. As one of the top liquidators in Dubai, we ensure to assist you in the entire process of company liquidation. The liquidation process of a company is mostly legal formalities and without the support of a liquidation service provider, it could be tiring and more time-consuming. Our team of company liquidation experts will guide you in the entire process. We can assist you as a liquidator and as a liquidation service provider.
Canceling of licenses and seeking approval from different government authorities will be done by our professionals and will help you attain the liquidation report as soon as possible. Cancellation of the license, advertising in at least two newspapers about the company’s liquidation, submission of declaration papers at the Department of Economic Development (DED), obtaining objection letter from the partners, cancellation of the partner’s visa, liquidating the assets, can all be done by Jumaira Consultants. We offer company liquidation services across the country and we aim to make things easier for our clients with our prowess.
With our extensive experience in offering company liquidation services, we have been able to keep our relationship with the government authorities and agencies alive, which will make things a lot easier.
Apart from business setup services, we offer business consultancy services, mergers and acquisitions, tax residency certificates, trade licenses and many other services.
If you’re interested in setting up an offshore company in the UAE, please +971507420262 right away; we’d be pleased to assist you.
