Liquidation in Dubai Development Authority

Company Liquidation in DDA

Steps involved in the process of liquidation of Companies in Dubai Development Authority (DDA), previously known as Dubai Creative Clusters Authority (DCCA).

 

Dubai Development Authority (DDA)

Dubai Development Authority (DDA) was previously known as Dubai Creative Clusters Authority (DCCA) following law 10 of 2018.

 

The Authority is mandated to play a major role in the future growth of Dubai’s economy and set global standards for urban planning, real estate development, and municipal and business services. The Authority is committed to become the enabler of business-friendly environments fostering business excellence for all its stakeholders, including real estate developers and all strategic partners contributing to the economy of Dubai.

The Authority focuses on three main streams delivering:

The Company should submit a notice to the DDA free zone authority mentioning, the reason behind the closure of the entity, and one month prior to the liquidation. Otherwise, there will be some charges for canceling the lease agreement.

A board resolution (or Shareholder’s resolution in case of FZE/FZCO) for De-registration must be attested in front of free zone executives. If the shareholders are outside the country/the owner of the company is a foreign company then the resolution has to be notarized and attested from the UAE embassy of that country and the same has to be legalized from Ministry of Foreign Affairs, UAE.

Company must return all office keys and transponders (It is not applicable for the companies in Leasehold or Freehold).

The Company have to provide the copy of the New paper advertisement (ie; in one in English and other one in Arabic.)

Company Original license, Certificate of formation & Share certificates, Lease agreement and the Original Department of Economic Development License (if it is issued through DDA)

Company Original license, Certificate of formation & Share certificates, Lease agreement and the Original Department of Economic Development License (if it is issued through DDA)

The following clearances are mandatory from different authorities;

  • Clearance from Dubai Customs Department
  • Clearance from DDA Finance Department
  • Clearance from DDA Government Services Department
  • Clearance from DDA IT Section
  • Etisalat Clearance. (If Required)
  • Facilities Management Clearance

  Liquidation report must be prepared by a Registered Auditors in Dubai

 

What is Company Liquidation?

Company Liquidation is a process where a company takes a decision to wind up their business operations as it can no longer continue the business operations. When a company undergoes liquidation, they sell their assets so that they can pay back their debts/liabilities/obligations.  The amount that is collected after selling the assets is shared by the shareholders of the company.

 

There are different kinds of companies in the UAE, such as LLC, Sole Establishment or a Free Zone. When a company is being liquidated in the UAE the assets and properties are distributed to the creditors, shareholders of the company. In other terms Company Liquidation is also termed as winding- up of the business.

Checklist before liquidating your company in the UAE

Basic requirement for Free zone Company Liquidation are as mentioned below:

All fees/charges/expenses are to be settled within the free zone in UAE

 

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