UAE is a dynamic business hub where companies open and close frequently. Audit firms play a significant role in certifying the financial aspects of a company, either when it’s operating or closed. Company liquidation is the process to shut down its current operations and distribute the assets among shareholders or creditors of the company.
Winding up a company in UAE is a quite complicated and lengthy process which requires a professional expertise. A & A Associate provides liquidation services for all business entities that include LLC (limited liability companies), free zone companies, and offshore companies across UAE. We verify and report the financial aspects of an organization at the time of liquidation. Our liquidation services settle down all the liabilities and dues among shareholders and ensure they were fairly treated!
How to close down a company in UAE?
STEP1 – close your UAE bank account and obtain the statement of accounts for the preparation of liquidators report.
STEP 2 – cancel all the running visas under UAE company sponsorship
STEP 3 – Get clearance from the regulating authority.
STEP 4 – Get clearance from third party. If you’re renting the office, then pay all your dues and get clearance from the landlord.
STEP 5 – Depending on the jurisdiction in which the company is registered, it’s mandatory to run a 15 days newspaper publication for de-registration. It’s essential to mention that company is on the liquidation process.
STEP 6 – Make sure that you sell or transfer the company’s properties, vehicles, and shares in other companies. Give a proof of transfer or proof of selling to the liquidator.
STEP 7 – Get the support of an approved auditing firm to prepare the liquidators report for your company.
STEP 8 – Get a confirmation certificate that depicts the company license termination and de-registration.
What are the procedures for cancelling License of Entities in UAE?
Cancellation of LLC
- Cancel all the existing employees
- Consult a director board for dissolution. Focus on the appointment of a liquidator and has to be attested from the Notary public
- Letter from the liquidator with their license copy, auditor registration certificate, and authorized signature certificate. All the above documents attested by notary public.
- Payment of fees at DED (Department of economic development) to issue company liquidation certificate.
- Finally, give advertisement of liquidation in two local Arabic newspapers for one day. You have to wait for 45 days and check whether any client has financial claim against the company.
Cancellation of sole establishment companies
- Cancel all the existing employees
- Cancellation of labour establishment card from Tasheel center
- Get seal and authorized signature on the application at any Labour office branch. The office will issue NOC by putting a stamp on the application submitted.
- Prepare a cancellation form, even if you’re company didn’t make a labour establishment card.
- Get signature in the license cancellation form and submit at the DED
- Payment of fees at DED for cancellation
- Economic department will issue a file number and move it, to get clearance from police authority. If there are no violations, they will send a clearance message to DED electronically.
- Pay fees and get the cancellation certificate
Cancellation of free zone companies
Liquidation procedure may vary depending upon the free zones, but most of them have similar cancellation process,
- Resolution from board for liquidation and appointment of a registered liquidator in UAE
- Get immigration and labor department clearance from free zone authority. Cancel all visas.
- Liquidation letter from registered auditor.
- Settle down all the fees and charges of the free zone.
- Get clearance certificate from the free zone authority.
- Get NOC certificate from business Unite.
- NOC from CLD government section
- Original license
Checklist required before liquidating your company
- Settle down all utility bills
- Pay off telecommunication bills
- Closure of all bank accounts
- Preparing the final audit report
- Cancellation of visa under license
Documents required for the Liquidation process
- License Copy
- Emirates ID Copy
- Deregistration Application Form
- Shareholders Resolution
- Shareholders passport Copy
- Memorandum of Association Copy
- Power of Attorney
Notice Period for Liquidation of company
After submitting the above documents along with the initial payment to the concerned authority, a liquidation certificate will be issued. This certificate works as a documentary evidence to proceed with the winding up of a company in UAE.
After obtaining the liquidation certificate, company can proceed with newspaper advertisement. In case of LLC and free zone companies in Dubai, it requires a minimum of 45 days notice of liquidation advertisement in a public newspaper. Limited liability companies should publish the advertisement in Arabic language.
Actions to be taken during Notice Period
- Clearance from Immigration Department
- Clearance from Labour Department
- Clearance letter from Water and Electricity Departments
- Clearance letter from Telecom Authority
- Clearance letter from Landlord
- Bank account closure letter
Final Step for Liquidation of company
After the successful completion of notice period, it’s essential to submit the liquidation report and copy of newspaper advertisement as a final step.
After reviewing the documents, make the final payment to the authority and avail the final certificate called License cancellation certificate by the concerned authority.
How A & A Associate helps out liquidation in UAE?
- Full preparation of required documents for company license termination and de-registration
- Preparation of application for company license termination
- Obtaining clearance from all utilities and any office facility
- Obtaining clearance from concerned authority as per the business activity.
- Assistance with authorized signatory to sign the liquidation of the company in UAE
- Coordinating with the authorities regarding the company de-registration publication.
- Full compliance with visa cancellation for active employees under the UAE company
- Collection of license termination and de-registration letter from authorities.
A & A associate ensures apt procedures for liquidation of a company in UAE. We house a dedicated team for the liquidation services, where you can reach out our team for initial consultation. Contact us for the most appropriate proceedings in the liquidation process.