Company liquidation In Dubai

Company liquidation In Dubai

What is Company Liquidation?

What is Company Liquidation?

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.

Documents Required

1. 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.

2. 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.

3. 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

4. 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
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How MSZ Consultancy Can help You with the Company Liquidation Process

If you’re planning to liquidate your company, it’s important to comply with all the legal requirements to avoid many future complications. At MSZ Consultancy, we understand the legal framework and will work closely with the authorities to ensure a smooth and hassle-free company liquidation process. We’ll guide you through the entire process, including business name cancellation, employee payments, cancellation of taxation registrations, and other legal obligations. Every step in the process involves certain legalities, which we’ll explain in detail and help you fulfill. If needed, we can also connect you with a third party who can procure the liquidating company and take care of all the related concerns.

We can help you in assessing every aspect involved in liquidating a business, including:

  1. Business liquidation preparation
  2. Owner’s responsibilities
  3. The cost of closing down
  4. Insolvency and bankruptcy
  5. A detailed review of all compliances

If you require professional advice and assistance regarding company liquidation, call the experts at MSZ Consultancy. We will be happy to help you!

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