How to Liquidate a Company in UAE

Liquidating a company is a structured process that entrepreneurs must follow when closing down their business in the UAE. This concise guide offers an overview of company liquidation in Dubai, UAE, outlining the essential steps and considerations to help you navigate the path to closure confidently and clearly.

Company Liquidation in UAE

When an LLC, a branch of an LLC, a free zone company, an offshore company, or a sole establishment ceases its operations in the UAE, it's crucial to cancel the firm's licenses and distribute its assets among shareholders and creditors. This process, known as company liquidation or de-registration, can be complex and time-consuming due to the numerous documents and relevant authorities involved. Liquidators in Dubai can provide guidance to simplify, expedite, and make the liquidation process more cost-effective.

Requirements for Liquidating a Company in Dubai

The process of liquidating a free zone company in Dubai involves several steps that entrepreneurs must follow for a smooth company liquidation in the UAE:

• Clearing All Liabilities: The company must not have any outstanding liabilities.
• Cancelling Visas: All active visas associated with the company should be cancelled.
• Closing Corporate Bank Accounts: Close all company bank accounts.
• Asset Transfer: Any assets held by the company at the time of liquidation should be transferred to shareholders or a third party.
• Fee Clearance: Clear all charges related to the free zone authority.
• Immigration Clearance: Obtain immigration clearance from the Free Zone Authority.
• Appointment of Liquidator: The company must prepare a resolution to liquidate and appoint a licensed liquidator to oversee the process.
• Audit Report and Liquidation Letter: The liquidator must confirm the company has no remaining assets or liabilities by preparing a final Audit Report or Liquidation Letter.

Company Liquidation Procedures in UAE

The procedures for company liquidation in the UAE vary depending on the business jurisdiction, which can be the Free Zone or the Mainland. Here are the general steps for company liquidation:

• Board Resolution: The company should prepare a board resolution stating the license's cancellation and the reason for closing down.
• Clearances: Obtain clearances from relevant authorities such as Free Zones, telecommunications companies, Emirates Post, and banks.
• Employee Clearance: Cancel employee visas and settle all dues to process the trade license cancellation request.
• Supplier Dues: Clear all outstanding dues to suppliers and prepare the audit report.
• Advertisement in Newspapers: Publish an advertisement or notice in two local daily newspapers (one in Arabic) for 45 days.
• Memorandum of Association: Cancel the Memorandum of Association of the company with the business jurisdiction.
• License Cancellation Certificate: After all documents are submitted and reviewed, the authority will issue the license cancellation certificate, confirming the liquidation of the company and the trade license's cancellation.

Formalities for Cancelling Your Business Licence

The process for cancelling your business license depends on the type of company you have. Establishments and sole proprietorships can apply for cancellation through the DED and obtain clearances from various authorities. However, companies with shares have a longer process, involving the liquidation of shares, debt collection, creditor payments, and finalization with the DED.

Required Clearances

To successfully liquidate a UAE company, you'll need the following clearance certificates:

• Clearance certificate from the relevant free zone authority.
• Clearance certificate from the business unit.
• Clearance certificate from all utilities.
• Clearance certificate from any related authorities as per the regulated activity.
• Customs clearance.

Liquidation Services in Dubai

Entrepreneurs seeking assistance with liquidation services in Dubai can benefit greatly from expert liquidators like Reyson Badger. Professionals like Reyson Badger play a crucial role in simplifying the often complex process of company liquidation. By enlisting our help, entrepreneurs not only ensure a smoother and more efficient liquidation process but also provide a sense of security and confidence for investors involved. This expert guidance eases the path to closure and helps stakeholders navigate the intricacies of liquidating a company in Dubai.