How to Liquidate a Company in Dubai?

1. How to Liquidate a Company in Dubai? =================================================================== Company liquidation in Dubai is an essential exercise the management/ partners undertake to wind up business operations in UAE. There are several reasons for liquidating a business. Some of the common reasons are as follows: Expiry of business license and management not interested in renewing the same. The loss suffered by the company resulted in creditors filing for the winding up of the company and recovering the dues by selling the assets. A merger of existing business operations with a new entity results in the dissolution of the present company not being required anymore. The mutual decision of shareholders or partners to close the business as a local sponsor/partner is not interested in carrying out the partnership. When a company undergoes the process of liquidation, there are various statutory formalities. These formalities are to be duly met and completed before the liabilities/ debts to creditors get settled. Other obligations towards the employees are fulfilled.

2. In the United Arab Emirates, when a company, whether an LLC, Free Zone, or sole establishment, is liquidated, the assets are sold-off / auctioned according to the process laid down by the regulatory authorities. Moreover, the proceeds thereof are distributed among the creditors and, if there is any surplus, among the company shareholders. Company Liquidation Process in UAE Liquidating a company in the UAE is process-oriented and time-consuming. It is not about closing down the business operations at a day's notice to the employees. There are many things to consider, such as informing the government authorities, the company's bankers, auditors, creditors, customers, and if it is a listed company, then informing the stock exchanges. All the formalities are legal and must be adhered to by the company management/owners. There are seven main steps for carrying out Company Liquidation in Dubai. 1.The company has to send a notice to Dubai Development Authority (DDA) for liquidation, giving reasons for the closure of the business entity. One month's notice is to be given. Otherwise, their charges will be levied. 2.The company has to submit a board resolution and, in the case of FZCO/FZE, a shareholder’s resolution for Deregistration. The documents have to be attested by free zone executives. And, if the owner or shareholder is a foreign national, the document has to be notarized and attested by the embassy of the concerned national country in UAE and legalized by the UAE Ministry of Foreign Affairs. 3.The company must hand over the office premises if it is on lease. It has to settle all the utility bills, pay the pending telecommunication bills, close the bank accounts and cancel the visa issued under the business license. 4.Newspaper advertisement is mandatory given by the company in English and Arabic languages. The ad is to inform the patrons or customers about the liquidation of the company. 5.Documents required for the liquidation process are the original company license, original DED License, Lease agreement, and Certificate of Formation and Share certificates. Clearances are required from the following authorities for a Business Setup in the UAE.

3. Dubai Customs Department DDA Finance Department DDA Government Services Department DDA IT Section Etisalat Clearance (if required) Facilities Management Clearance Ministry of Human Resources and Emiratisation Directorate of Residency and Foreigners Affairs Water and electricity authority The leasing entity Preparation of liquidation report by an Auditor based in Dubai The entire process is complicated to execute and requires professional business consultants like Absher Business Consultancy, who offer company liquidation services. The primary and significant step in liquidation is getting the business and other licenses canceled. For sole establishments in Dubai, the license is canceled through the Department of Economic Development (DED). Company Liquidation Services Business Consultants in Dubai, like Absher Business Consultancy, have extensive experience in Business Setup Services and liquidating companies in UAE; thus, their services are invaluable. They are among the best liquidators in Dubai and are experts in the entire process of company liquidation in the UAE. The liquidation process requires dealing with various regulatory authorities and other stakeholders in the company. Dealing with all of them is time-consuming, and requires knowledge about the formalities and documentation required. There is also the burden of dealing with all the utility services, banks, creditors, and other authorities and getting the approvals and No Objection Certificates. The advantage of outsourcing this entire process to Consulting Companies in Dubai is to get the liquidation process done quickly and in a hassle-free way. Source Link: https://www.absherbusiness.ae/blogs/how-to-liquidate-a-company-in- dubai/en