Liquidation of companies in Dubai
To close a company in Dubai and other parts of the UAE, a liquidation company must first be appointed. Under UAE company law, only an approved Company Liquidation Services In Dubai can be appointed to oversee the company’s winding-up process.
A company can be dissolved by its owners or forced to close when it can no longer meet its obligations to creditors. There are therefore two types of company winding-up
Liquidation of a limited liability company (LLC)
Board of Directors
The board of directors must unanimously decide to close the company. All members of the board must agree on this and the document must be certified by a notary. The meeting must also decide to appoint an approved liquidator and this must also be included in the legal documents.
Submitting a request for liquidation
The liquidation form must be duly completed and submitted to the Ministry of Economic Development of the emirate where the company is registered. The Ministry of Economic Development in Dubai and the Ministry of Economic Development in Sharjah in Sharjah handle the liquidation of a company.
Public announcements on the decision to dissolve a company
The decision to dissolve the company must be notified to all existing creditors and published in local Arabic newspapers so that they can make claims against the company. This must be published at least 45 days before the company’s liquidation to allow creditors sufficient time to file full and final claims against the company.
Approval of liquidators
The approved liquidator or the liquidating company must agree to take responsibility for the liquidation of the company and its assets. This must be given in writing to the company when the decision is taken to wind up the company, to inform them that a liquidator has been appointed as official liquidator to oversee the process of closing the company.
The Ministry of Economic Development of the emirate where the company is registered, e.g., Abu Dhabi’s Ministry of Economic Development for companies registered in Abu Dhabi and Ras Al Khaimah’s Ministry of Economic Development for companies registered in Ras Al Khaimah, requires a notice period of 45 days for all companies that decide to close.
Cancellation of visas and settlement of outstanding payments
Within the 45 day period given by the Ministry of Economic Development, all visas relating to the business must be cancelled. This includes work visas for employees/partners and residence visas for spouses and children (if any). A certificate of non-compliance must then be obtained from the Labor and Immigration Office.
All outstanding utility and telecommunications bills must be paid and a non-objection certificate obtained from the utility company (e.g., DEWA in Dubai) and the telecommunications company (e.g. Etisalat / du).
At the end of the 45-day period, the state-authorized liquidator submits a final audit report stating that all debts to creditors have been paid and that there are no outstanding claims. To avoid further delays, it is always recommended that debts to creditors, customers and other third parties are settled before the decision to close the company is taken.
Once the Ministry of Economic Development where the company is located (e.g. the Ministry of Industry and Economy in Fujairah for companies registered in Fujairah and the Ministry of Economic Development in Ajman for companies registered in Ajman) confirms that the company has paid all creditors and all other debts, a final liquidation certificate is issued indicating that the procedure has been successfully completed. .
This is the final step in the process. Once the certificate is issued, the company is no longer legal and official.
Why choose us for company liquidation?
We are state-licensed liquidators and have extensive experience in liquidating companies in Dubai and elsewhere in the UAE. Our expertise ranges from sole traders/private shops to legal limited liability companies (LLCs), legal limited partnerships (LLPs) and civil companies.
Whether on the mainland, in the free zone or offshore we can help. We have many years of experience in this field, having assisted in the liquidation of more than 100 companies. So, choose us.