Company Liquidation in Dubai

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To understand why you need liquidation services in Dubai, you need to understand what company liquidation is. 

In Dubai, company liquidation is a procedure that requires close attention to detail and compliance with legal requirements. Hence, it is important to gain a grasp of the complexities involved in liquidating an LLC firm in Dubai. With professional assistance from Rewind Consultancy – a well-known business setup consultant, let’s see how company liquidation is done, and how we can help!

The UAE has its own set of rules and regulations regarding the commercial sector. Every businessman in the nation knows how crucial it is to follow the rules to avoid paying fines or penalties. This holds even if you are shutting down your UAE-based company. Notifying the government agencies of your company’s closure in any UAE city is crucial if you want to avoid paying financial penalties like fines when your licence expires.

What Do You Need for Company Liquidation in Dubai?

Here are the requirements for company liquidation in Dubai:

Mainland Company

  • Notarized minutes of the shareholder meeting attesting to the liquidation of the business and the designation of the liquidator.
  • A formal document acknowledging appointment and licensing as the liquidator’s responsibility.
  • DED application form for a cancellation request. Obtain a DED liquidation certificate.
  • After obtaining the primary liquidation certificate, publish the notice of liquidation in two local newspapers.

Notice Period – Debtors have 45 days following the issue date to lodge their claims regarding the company’s liquidation.

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Steps to Take Following Notice Period

Following the notice period, you will need to turn in the following paperwork:

  • Declaration letter to the DED (letter to be sent by liquidator and partners) stating that no parties have objections to the liquidation.
  • Firm card cancellation at the Ministry of Emiratisation and Human Resources.
  • Approvals for licence cancellation from additional governmental bodies.
  • Cancellation of company-sponsored visas for foreign partners.
  • Pay the DED-determined fees.

Free Zone Business

The processes are different for a corporation operating in a free zone. Notifying the free zone authority is required.

  • Apply for company termination.
  • Request a business closure using the member portal.
  • Post a notice in one local newspaper following the application’s processing.

DMCC will file a letter of company termination and a final termination after receiving the paperwork above.

Revocation of Employee Visas

Employee visa cancellation is another prerequisite for business collapse. The UAE Labour Law mandates that you provide your workers two months’ notice before ending their employment agreements. 

Liquidating a company can be a complicated process. Rewind Consultancy offers its assistance with business closures. Please get in touch with us if you need any guidance or support.

Why is it Necessary to Liquidate a Company?

Company liquidation fulfils several vital functions:

  • Fresh Start: It allows companies to launch a new venture or split from a certain corporation.
  • Debt Settlement: Liquidation protects creditors’ interests by ensuring that a company’s assets are used to pay off its debts.
  • Equitable Distribution: Directors and shareholders share equally in whatever money is left over after obligations are paid off.

Want to know how we work? Read below:

In Dubai, company liquidations can occur in several locations, such as free zones, offshore zones, and mainland Dubai. The basic steps of the procedure stay the same, even though there could be some minor variations. Read how we do it:

  • Drafting and Approval of Dissolution Resolution: To dissolve the business, the shareholders must approve a resolution. A Notary Public must certify this decision in the case of Limited Liability Companies (LLCs). The resolution needs to be notarized and attested at the appropriate UAE embassy. Then, it must be attested at the UAE Ministry of Foreign Affairs and Ministry of Justice if the shareholders are not physically present.
  •  Liquidator Appointment: A liquidator is chosen and given a formal acceptance letter following the resolution’s passage.
  • Notice of Liquidation: Following issuing a provisional liquidation certificate, a notice of liquidation must be published in both Arabic and English in a public publication.
  • Submission of Documents: The resolution and any required paperwork and payments are sent to the appropriate licensing authority.
  • 45-Day Notice Period: Various clearances and terminations, such as the cancellation of work permits and visas for all employees and partners, occur within this time.
  • Approvals & Clearances: Several clearances and approvals are needed, including those from the Department of Labour, the Immigration Department, the Road and Transport Authority (RTA), the Federal Customs Authority, the utility companies (telecommunications, power, and water), the landlord, the Department of Immigration, the Department of Labour, the closure of the bank account, and the Value Added Tax (VAT) de-registration.
  • Liquidation Report: The liquidator puts together the Liquidation Report at the end of the notice period.
  • Application Review: The relevant authority receives the final report, related documentation, and necessary cancellation fees. It then reviews the application.
  • Licence Cancellation Certificate: The authority issues a “Licence Cancellation Certificate” if the application is accepted.

How Can Rewind Consultancy Help?

Rewind Consultancy provides thorough company liquidation services in the United Arab Emirates for all UAE firms, including LLCs, free zone companies, and offshore companies. Our services range from complete support for the liquidation process to assistance with certain steps in the procedure, depending on the customer’s needs. For additional details regarding our liquidation services, kindly contact us.

FAQ

Can a business be reinstated after liquidation?
After liquidation, a corporation might occasionally be able to be resurrected, but this normally needs the consent of creditors, shareholders, and the appropriate regulatory bodies. Paying off debts and fulfilling any legal requirements for reinstatement are usually the first steps in reviving a business.
Any money left over after creditors have been paid may be distributed to shareholders, but this is not a given. Usually the last in the queue for payment, shareholders can not get anything if there aren’t enough funds.
The intricacy of the company’s affairs, the quantity of assets to be sold, and other variables can affect how long the liquidation process takes. The completion time may range from several months to several years.
An appointed liquidator supervises the liquidation procedure. In compliance with the law, they must liquidate the company’s assets, settle its debts, and distribute any money left over to shareholders and creditors.
At Rewind Consultancy, our expertise lies beyond traditional auditing. We are based in Dubai, offering a range of professional services in auditing, accounting, and all business-related solutions.

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