Company Liquidation process by which a Dubai LLC company (or its branch), sole establishment, or free zone company closes its operation, and therefore the assets and property of the corporate or institution are distributing to creditors and shareholders (owners) of the UAE registered company. It is also known as winding-up or dissolution. We, at Business Link UAE, help liquidation services for Limited Liability and Sole Establishment Companies in Dubai and all over the UAE. Company Liquidation
The process of liquidation becomes inevitable when a corporation doesn’t have liquid funds to hold on day to day transaction of the corporate, creditors aren’t being paid or company commits some serious offense, and regulatory authority or agency in a very country accountable for the relevant sector files a suit for the affecting the operations of the corporate. The liquidation of the company in Dubai, UAE can be either compulsory or voluntary. Trade license cancellation is one of the processes in the company liquidation services in Dubai.
company liquidation in Dubai
Even though Dubai offers one of the best business environments in the world, there are times when companies fail due to unseen and unexpected reasons. Falling demand for a particular product/service, worldwide economic recession, oversupply, and saturation are some of those. In such a situation, the business owners simply need to call it off to save the company from further damages and liabilities. Company Liquidation in Dubai typically occurs when creditors and banks knock on the doors of the concerned firm.
Like the rest of the world, even this emirate has statutory laws to liquidate the company in Dubai.
Business Link UAE undertakes the task of closing your business in Dubai and UAE. Before business wind up and trade license cancellation, it requires to settle down the telecommunication and all utility bills, get the necessary certificates from various Government authorities, close the bank account, prepare the final audit report and cancel all the visas. Thus, the liquidation of a company in Dubai can be a complicated and time-consuming process. You can simplify the legal procedures and avoid additional costs by trusting Business Link UAE for closing a business in Dubai Mainland or Free zone.
Following is the procedure for company liquidation in Dubai. For the rest, we are here at Business Link UAE to assist you with the whole procedure for liquidating your company.
License Cancellation of Limited Liability Company
- Cancel all existing employees, if any
- Resolution of Director Board for dissolution and appointment of a liquidator and it has to be attested from Notary Public.
- Letter from the Liquidator along with their License Copy, Auditor registration certificate, Authorized signature certificate attested by Notary Public
- Payment of the fees at Department of Economic Development to issue company liquidation certificate
- Liquidation advertisement in two local Arabic newspapers for one day and wait for 45 days to check whether any client has a financial claim against the company
- Present original newspaper Ad and final audit report of the company to the Department of Economic Development
- Confirmation of the Liquidator and Partners that there is no objection/claim from the third party during the Ad period
- Cancel visa of partners, if any, and get a clearance letter from the Ministry of Labour and Immigration, DEWA, Etisalat
- Copy of Director Board resolution and copy of liquidation certificate
- Pay fees at the Department of Economic Development
License Cancellation of Sole Establishment Companies
- Cancel all existing employees, if any
- Type Labour Establishment Card Cancellation form from Tas’heel Center.
- Get seal and authorized signature of the company on the application and submit at any of the Labour office branches. The Labour office will issue their NOC by putting a stamp on the application you submitted
- You should prepare the above-mentioned cancellation form even if your company didn’t make a Labour Establishment Card.
- Then type license cancellation form of Department of Economic Development, get signature of the owner, and submit at DED
- Pay fees at the Department of Economic Development for cancellation
- Economic Department will issue a file number and take it to the Department of Protective Systems to get clearance from the Police authority. If there are no violations in Police records, they will send a clearance message soon to DED electronically
- Pay fees to DED to get Cancellation Certificate
- Take this certificate to the Immigration Head office in Jaffliya along with a request letter in Arabic and the original Immigration Establishment Card. You need a Certificate of Loss from the Police if your card is forfeit. To get this certificate, prepare a request letter in Arabic and submit it at your nearest police station. After two days certificate will issue.
Dubai Freezone Establishment Liquidation
- Board resolution for liquidation proposal and appointment of liquidator.
- All visas need to cancel.
- Obtaining immigration and labor department clearance.
- Submission of liquidation letter by the registered auditor or legal business consultant in Dubai.
- Fees and other dues need to clear.
- Clearance certificate from free zone authority, business units, and CLD government section.
- Original License submission.
Dubai company liquidation process is a tedious and mandatory process. It is time-consuming, demoralizing, and requires immense patience. A smarter way to wind up a business is to seek company liquidation services in Dubai.
The list of documents required for company liquidation in Dubai is long and therefore it is prudent to hire a business setup consultants in dubai such as Business Link UAE. We are renowned professionals in order to accomplish this task quickly and that too at an attractive price point.