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How to close a business

How to Close a Business- A Complete Checklist for Closing a Business?

When you start a business, you want it to succeed and stand out. But, in some cases, you may need to know how to close a business. Business liquidation requires the involvement of professionals. If you want to establish a new company, you will also need to close the current company if you have one. You must consider reaching out to professionals who can help you in the process of closing a company.

DED will Give a License to Close the Company

You should start the company closing procedure as soon as you plan to do it. The procedure for liquidating the license will need you to submit the license. You should opt for the following:

  • Clear the debts
  • Pay the creditors

Now you can move to close the company.

How to Close a Business in UAE?

Closing a business in the UAE can be an extensive and long procedure. It is crucial that you opt for the right measures so that you can close the business. You will need to report the authorities each step of the way to ensure you can liquidate the company.

Given below are the steps companies will need to follow for liquidation:

Close the Corporate Bank Account

When you establish your business in any region of UAE, you need to open a corporate bank account. When you are closing the business, the authorities require you to shut down your company business account too. You should get the Statement of Account from the previous financial year. After that prepare the Liquidators Report.

How to close a business

After that, you need to apply at the bank to get Bank Account Closure Confirmation. You will get confirmation after closing the bank account with UAE bank.

Immigration Clearance

When you’re running a business, you will be eligible for visas. If your company has any visas under sponsorship, you should cancel them. If there is any visa under the employee sponsorship visa, you should cancel it. Thus, any family visa or dependent visa should go for immigration clearance.

Regulating Authority Clearance

Regulatory authority clearance is crucial as well. But, this will completely depend on what the activities of your business are. If you have a trading company, you will need to reach out to the Ministry of Customs and Chamber of Commerce. These two bodies will provide you with the certificate of clearance.

Third-Party Clearance

Business needs clearance from all sectors. It can be authorities or third-party bodies. They should return any extra assets that they have. If you have an office space, you should remove all the appliances and units. If there are any. Moreover, you should also clear the dues that you have taken while renting the office. If you have any existing dues, you cannot start any business. If you plan to move to a new place and leave Dubai regularly, you must clear all the activities before you leave the place.

De-registration of Publication Activities

Once you start the process to close the business, you should apply for de-registration publication. According to the jurisdiction of UAE, you must deregister all the activities. As a legal entity, you must deregister the space. This will help you close the business. Once the process is done, you should publish the news for the same in the paper as well. You can also opt for online publication. Since you are closing the company, you must publish the news in respective papers.

Company Asset

Your company must have assets registered. When you sell the company, you must sell them. If you do not, the process of company closure will be on hold.  You must sell the property, vehicles and shares.

How to close a business

Liquidator Report

The company auditing firm will conduct a performance to determine the effectiveness. You must also prepare the liquidator report. However, to get this report, you must have Proof of Transfer or Proof of selling the activities.

Company License Termination Certificate

When you’re terminating a company, you must apply for the certificate. The authority will keep a regulatory check. Thus, they will ensure that you meet the necessary conditions. After all checks, you will get the certificate. Then, you can go ahead and close the company.

Get the Clearance Form

When you’re liquidating the shares, you need to apply for a clearance form as well. The DED will be helping you acquire the clearance form. The following are the clearance forms you will need:

  • Etisalat or DU
  • Ministry of Human Resources and Emiratisation
  • General Directorate of Residency and Foreign Affairs Dubai
  • Dubai Electricity and Water Authority
  • Company bank account firm
  • Leasing company or landlord

You need to Appoint a Liquidator

You need to appoint a liquidator when you want to close a company in Dubai. It is advisable to apply for the legal forms if your company belongs to any one of these:

  • General Partnership
  • Public Joint Stock Company
  • Private Joint Stock Company
  • Limited Liability Company
  • Simple Limited Partnership

You need to prepare a notarized document when you want to close the company. All the shareholders of the company must provide approval for the decision. Apart from that, as the business owner, you must also submit the appointment of a liquidator. You can apply for an application at the DED requesting the closure of the company.

Conclusion

You must publish the news of the company closure in two local papers. The grace period for submitting the claims is around 45 days. If you do not get any objection, you can freely close the company.

The owner must cancel the license and visa. The General Directorate of Residency and Foreign Affairs Dubai gives the visa. You will receive clearance from the authorities. Then, you can close the company. You will get a Certificate of Deregistration.

You will get the certificate after you finish everything.  If you want to leave Dubai, settle all affairs. However, if you want to establish a bigger venture, you must start with that procedure.

Closing the company needs you to undergo various formalities. Therefore, you may consider reaching out to professionals. Our experts go through all your papers and help you close your company!

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