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Company Liquidation

Company Liquidation

How to Liquidate a Company in Dubai & UAE ?

liquidate companies dubai, uaeThe first thing to do in de-registering a company is to designate a liquidator firm. Only approved liquidators can be hired to start the liquidation procedure as defined in official regulations. The firm who offer company liquidation services helps in closing the company operations in compliance with UAE company laws.

A company can be dissolved voluntarily or forcefully by authorities when it can no longer be able to pay its liabilities.

UAE Company law states two types of company liquidation method:

  • Voluntary Liquidation
  • Compulsory liquidation

 

Voluntary Liquidation

Voluntary liquidation is also referred to as shareholders liquidation. There are several causes that come into effect to voluntarily wind up a company such as expiry of the fixed duration, the purpose of the company formation is achieved, termination of the objects, merger of the company with another company, continuous business losses, the inability of the company to pay its debts. Shareholders of the company decide to dissolve the entity to avoid further losses to occur.

Compulsory Liquidation

Compulsory winding up a company refers to the forceful action when a company commit some serious offence against the law or insolvency of the company to carry business operations. It also comes into effect when creditors file complaints against the company to the local regulatory or authorities to claim their receivables. The local authority then takes action to forcefully liquidate the company and help the creditors to recover the money.

Procedure of Liquidating the Limited Liability Company (LLC) in UAE

Dissolving/Winding up an LLC Company involves the following major stages:

  • BoD Meeting

Minutes of a meeting of the board of directors declaring to liquidate the company and appointment of regulated liquidator. This document must be attested by Notary Public.

  • Application for liquidation

Submission of liquidation form along with fees to be submitted to the Department of Economic Development to get the company liquidation certificate

  • Advertisement in the newspaper

Place an advertisement in a local Arabic newspaper to announce the dissolution of a company

  • Official letter from liquidator

A confirmation letter from the registered liquidator stating to accept the responsibility to liquidate the company

  • Notice period

45 days grace period will be given from DED to wait for the creditors or clients if they have any financial claims on the company

  • Final Liquidator’s report

The liquidator will submit final company audit report and a letter stating that there is no claim from the third party/Client/Creditors during the 45 days ad period

  • Visa Cancellation

Cancel visa of all employees & partner and obtain NOC from the Ministry of Labour, Ministry of Immigration, DEWA & Etisalat/Du

  • Final Liquidation Certificate

After submitting all the documents, DED will issue a final company liquidation Certificate.

Specialist in DCCA and JAFZA Liquidation

We are one of the authorized firms to act as a liquidator of the free zone & limited liability companies outside free zones in all emirates. When it’s time to put an end to your relationship with Limited Liability Company (L.L.C), Free Zone Entity (FZE) or offshore entity in Jebel Ali Free Zone or RAK offshore or to terminate the license or deregister it voluntarily for distinct reasons, then A & A Associate gives you a helpful hand to act as a liquidator.

We very well understand that the consequences as an investor or manager you may face to deregister an entity and fully guide and support you to complete the process hassle free. There is numerous way that we can get to you to deregister or terminate the license process.

We can guide and assist you at every single stage and manage the process in your absence.