Company liquidation can be a stressful situation. While no business owner wants to face having to close down their company or cease operations, you don’t have to do it alone. Company liquidation is a long, tedious, and contentious process, but we can help. MSZ Consultancy has a team of legal experts that will guide you through the entire process. There are several formal procedures you’ll have to go through to end your company. Our specialized services will provide you with an easy exit strategy for company liquidation in Dubai.
Company Liquidation Services in Dubai
Now that you’ve made the painful decision of liquidating your company, it is time to get everything together to start dissolving your business. We have helped hundreds of clients just like you minimize their legal liabilities and possible financial losses during their company liquidation process, and we can help you too.
For a successful liquidation, you have to meet all the legal requirements. We have a complete understanding of the existing legislation and will coordinate with authorities to guarantee a hassle-free liquidation for our clients. We can even assist you through the business name cancellation process, employee payments, cancellation of taxation registrations, and any other related legal requirements. Each method involves certain legalities that we will assist you with in detail. We can also find you a third party who will procure the liquidating company and deal with the related concerns.
Ways MSZ Consultancy helps with the liquidation process:
Business liquidation preparation
Owner’s responsibilities
The cost of closing down
Insolvency and bankruptcy
A detailed review of all compliances
What Happens During Company Liquidation in UAE?
Liquidation is the process by which a company or a part of the company, sole establishment, Free Zone Company, or institution closes its business/operations. During liquidation, assets and property of the corporation or business is distributed to their creditors, shareholders, and owners of the United Arab Emirates-registered Company. Liquidation is also known as winding-up or dissolution.
Liquidation happens when a corporation doesn’t have liquid funds to hold day to day transactions, creditors aren’t being paid because of the lack of money, or the company commits a serious offense of some type. Company liquidation in Dubai sometimes can be compulsory and noted as a creditor’s liquidation or voluntary.
You need to appoint a liquidator if your company is a: General partnership, a Limited Liability Company, Simple Limited Partnership, a Public Joint Stock Company, or a Private Joint Stock Company. A liquidator is a UAE registered agent or firm that represents the company in court. They are responsible for settling all remaining debts of the company and selling any remaining assets.
MSZ Consultancy will take on the challenge of closing your business in the UAE. We will help with everything from settling your last utility bill, canceling visas, closing the bank account, preparing the final audit, and any other liquidation service that is needed. When you trust MSZ Consultancy with your company liquidation in Dubai, you’re simplifying the legal procedures and avoiding additional costs that may pop up. Let us help you by providing the best company liquidation services in Dubai and the UAE.
Documents Needed for Free Zone Company Liquidation in UAE
When beginning the liquidation process, you will have to get a list of documents ready to submit to the Department of Economic Development. The requirements may be different due to continuous change, or the required documents may vary from Free Zone to Free Zone.
Here are the typical documents that are needed to process the liquidation of a company in Dubai:
- ‘Board resolution’ for liquidating the corporate and appointment of a liquidator
- Immigration and labor department’s clearance from the Free Zone Authority (FZA)
- All Visas ought to be canceled and cleared by Immigration and Labor Department
- Submission of Liquidation letter
- Clearance Certificate from Free Zone Authority
- Clearance Certificate (NOC) from Business Unite
- CLD Clearance Certificate from Government section
- Original Free Zone company license
- All fees and charges need to be settled with the Free Zone
After you submit the required documents, your company will receive a liquidation certificate. After you’ve received the certificate, then you can advertise about the company’s liquidation in a local newspaper.
LLC Company Liquidation in UAE
An LLC can be dissolved either through a voluntary or compulsory liquidation process.
Voluntary liquidation happens during a meeting with the registered agent with the owner/shareholders. They agree on the liquidation and appoint a liquidator. Compulsory liquidation happens when the court gets involved and orders the company to be dissolved. A legal appointee will be assigned to audit the company’s assets. The auditor will be faced with distributing the assets among creditors and other parties.
Here’s a list of documents that will be needed for LLC company liquidation in Dubai:
- ‘Notarized Board Resolution’ to liquidate
- A letter from the appointed liquidator accepting the position
- Registration & Licensing Application (Form No. BR/1) from the Economic Department of the Emirates
- Company’s Original License and legal documents
- Release letter from the property owner
- NOC letters from the ministry of labor & immigration and RTA
- No liability and bank account closure certificate
- Resolutions by shareholders to dissolve the businesses from the Public Notary
- Letter of Company Dissolution by the Economic Development Department (EDD)
You will have to publish the notice of liquidation in two local newspapers. The notification gives debtors 45 days from the date of the issue to submit their claims.
Documents Required for Dissolution of Branch Company in Dubai
The term liquidated doesn’t apply to a branch company in UAE. That’s because the company is just closed down or deregistered, so a liquidator doesn’t need to be appointed, unless the parent LLC company itself is being liquidated.
A branch can be deregistered after the board of the parent company agrees to the decision. A power of attorney may be required during the process of deregistration.
You’ll need to do the following to deregister a branch company in Dubai:
- Termination of National Service Agreement
- Application for the issuance of branch deregistration certificate
- Apply for the Ministry of Human Resources and Emiratisation for closure certificate
- Obtain third party clearance
- Close bank accounts
- Get the license cancellation certificate
Documents Required for Cancellation of an Industrial Unit
- Certificates issued within the different Emirates indicating cancellation of license(s)
- Original copy of accounts liquidation approved by the partners and stamped by the legal liquidator
- NOC regarding cancellation issued by the Ministry of Labor and Social Affairs
- Visa Cancellation of the partner(s) if they are sponsored by their license
- Copy of the notice of the company’s de-registration and appointment of the liquidator to be printed in two local newspapers
- Partner’s letter for the agreement of the liquidation of the corporate
The Best Company Liquidation Services in Dubai
Company Liquidation in UAE can be a long and tedious adventure. We have many successful company closures under our belt, and we can help with your liquidation too. We have a team of unique experts that can help you with every aspect of company liquidation. We can guide you through the legal formalities and procedures, preparing your final audit, and offering the support and guidance that you need during this difficult time. We guarantee that you won’t find a company more caring about your needs than MSZ Consultancy. Customer service is our top priority, and we tailor our services to fit your exact needs. Don’t go through company liquidation alone. Call us today at +971 52 544 1248 for a free consultation to see how we can help.
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