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. Winding up a company 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.
Following is the procedure for company liquidation in Dubai. For the rest, we are here at Business Link UAE to assist you for the whole procedure for liquidating your company.
LLC OR LIMITED LIABILITY COMPANY LIQUIDATION
STEP ONE –
- Resolution by the board of directors for the dissolution. The same needs to be attested by a notary.
- Details of the appointed legal liquidator along with the name of this entity and the method of liquidation.
- Submission of registration and licensing form/s.
- Submission of original Certificate of Registration and Trade License.
- Payment of various fees to the department/s for issuing liquidation certificate.
- Advertisement in at least two local newspapers informing the public about the liquidation.
STEP TWO –
• Submission of an original copy of liquidation as approved by the board/partners and stamped by the legal liquidator.
• Fetch NOC issued by the Ministry of labor & social affairs concerning the cancellation of above.
• Visa cancellation of partner/s if the same is obtained through an issue of license.
• No objection/claim from third-party post advertisement in the local newspapers (Minimum 45 days).
SOLE ESTABLISHMENT BUSINESS LIQUIDATION
• Cancellation of Labour Establishment Card.
• Cancellation of all employees.
• Application for dissolution needs to be submitted to the Labour office and the same has to be endorsed by it. It is mandatory, even if the business has no Labour Establishment Card.
• Application for License cancellation needs to be submitted to DED.
• Payment to be made to DED for cancellation of license/s.
• Submit file number to the Department of Protective Systems to get clearance from the Police authority.
• Fetch cancellation certificate from DED.
• Submit this certificate to immigration head office along with a letter typed in Arabic and original immigration establishment card.
DUBAI FREE ZONES ESTABLISHMENTS LIQUIDATION
• Board resolution for liquidation proposal and appointment of liquidator.
• All visas need to be canceled.
• Obtaining immigration and labor department clearance.
• Submission of liquidation letter by the registered auditor or legal business consultant in Dubai.
• Fees and other dues to be cleared.
• Clearance certificate from free zone authority, business unite 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 consultant such as Business Link UAE. We are renowned professionals in order to accomplish this task quickly and that too at an attractive price point.