Company Liquidation in Dubai, UAE
Company liquidation in Dubai is time-consuming and process-oriented. It is not just about closing down the business operations.
There are several factors that a partner must consider when going for liquidation. The government authorities have to be informed, and the business licenses need to be canceled, assets are to be taken care of and distributed correctly, etc. There are legal formalities involved that need to be adhered to. A free trade zone, another name for a free zone, is a special economic zone that gives many advantages to businesses, including tax exemptions and concessions in regulatory fees. Free zone jurisdictions have their regulations and have a government regulatory body called the Free Zone Authority.
There are various reasons for liquidating a business in the UAE. Some of them are
- Expiry of business license.
- Loss in business resulting in creditors filing for liquidation and recovery of dues.
- Mutual understanding between shareholders to close down the business.
- The first step towards liquidation is to send a notice to the Dubai Development Authority (DDA) giving reasons for liquidation.
- The owners need to attest the board resolution for liquidation of the company personally before the DDA authorities.
- Placing of advertisements in local newspapers of Dubai about the company liquidation.
- Obtaining necessary clearance from relevant departments to complete the process of liquidation.
- Submission of liquidation report. The report needs to be prepared by an experienced auditor in Dubai as the final step towards liquidation.
The entire process is quite complicated to carry out. Hence, it requires professional expertise. This is where business consultants like Absher can provide company liquidation services.
The license cancellation is one of the main steps in the liquidation process. The formalities differ from company to company. In the case of sole proprietorship and establishments, the license cancellation is made through the DED. Also, clearance is required from the following ministries and departments.
- The Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- Water and electricity authority
- The leasing entity
Documents Required for liquidation
Company Liquidation Services in the UAE
Absher Business Consultancy offers company liquidation services to businesses in Dubai. It is one of the top liquidators in Dubai and helps in the entire process of company liquidation.The liquidation process requires legal formalities that are time-consuming and tiring. Also, the business partners may be hassled in the documentation work at this juncture of separation.
Business consultants come along with a team of company liquidation experts. They do the necessary documentation, submit them to the relevant authorities, and get the approvals completed. The liquidator assistance is beneficial to business owners as they get saved from these troubles during exit time.
The time taken to complete the entire liquidation process is done in a smooth and time-bound manner. It helps the shareholders to plan their separations better. Also, it is not only the company's documentation that needs attention. The foreign employees, along with the foreign partner, need to get their visas canceled. Business Setup Consultants in Dubai have extensive experience setting up and liquidating companies in the UAE, and thus their services are invaluable.
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Frequently Asked Questions
Canceling a private shareholding company is done by submitting a written cancellation notice.
This should be submitted to the Ministry of Economy, who will give their approval and the withdrawal document will be issued through police.
Canceling a public shareholding company is done by submitting an application letter at Securities and Commodities Authority (SCA).
Your application letter should include relevant documents for us to confirm whether your application has been approved or not.
You will then receive a decision from SCA on whether your business plans are acceptable or not. If approved, we can issue you with withdrawal papers which means it’s ok for you to close down unless there are outstanding debts.
Cancellation of Civil Works Company is a process whereby the status of a company will be changed to the status of dormant.
To legally cancel a civil works company, you must meet all the requirements set out in the Emiratisation law.
The procedures include filling out a form at the Ministry of Human Resources and Emiratisation, canceling the company card at that ministry’s office, collecting approvals from other government bodies to cancel your license, preparing a partnership cancellation contract authenticated by your notary public and submitting it together with all other required documents for successful completion of this process
The procedures and documents required to cancel a sole proprietorship license include a no objection letter from the Ministry of Human Resources and Emiratisation, You will also need to cancel your proof of residence cancellation for non-Gulf nationals.
A payment voucher can be canceled before issuance only if it is confirmed and approved by the Legal Affairs Department in the DED.
Launching a new business means you are going back to point zero but don’t be discouraged.
It just means that you need to go throughout the whole process of a company formation.
Here are some services to consider:
- Mainland Business Setup Dubai
- Product Registration in Dubai
- Feasibility study UAE.
- Bank account opening assistance
- Business Setup Consultants in Dubai
- Trademark Registration in Dubai .