Liquidation of company
Liquidation is the method by which a LLC company (or a part of a company), sole establishment, Dubai free zone company or institution closes its operation and therefore the assets and property of the corporate or institution is distributed to creditors and shareholders (owners) of the UAE registered Company. Liquidation is additionally known or noted as winding-up or dissolution, though dissolution theoretically refers to the ultimate steps of liquidation process. The liquidation of company in Dubai, UAE becomes inevitable when a corporation don’t have liquid funds to hold on day to day transaction of the company, creditors aren’t being paid or company commits some serious offense, and a regulatory authority or agency in UAE of Free Zone Authority accountable for the relevant sector files a suit for the effecting the operations of the corporate.
Liquidation could either be compulsory (sometimes noted as a creditors’ liquidation) or voluntary (sometimes noted as a shareholders’ liquidation, though some voluntary liquidations are controlled by the creditors).
Following are procedures and documents details that are required and presented to Dubai Economic Department or Economic Departments in other emirates or Free Zones Authorities in Dubai.
Requirements of winding up of Companies in UAE Free Zones
- Resolution from Board for liquidating the corporate and appointment of liquidator
- Immigration and labordepartment’s clearance from free zone authority. All Visas ought to be cancelled and cleared.
- Liquidation letter by registered auditor for FZE & FZCO solely to be submitted
- All fees and charges are to be settled with the free zone.
- Clearance Certificate from free zone authority (For corporations transferred from free zone) to be submitted.
- Clearance Certificate from Business Unite (NOC).
- Clearance Certificate from CLD Government section
- Original License
Above mentioned procedures and necessities are common in the majority the free zones of UAE, However, requirements are continuously changing and might vary from one free zone to the opposite.
Process for Cancellation/Liquidation/Winding up of LLC license in Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah (RAK) or Ajman underneath Main Land native Law and Appointment of Liquidator for liquidation of company.
LLC Company Liquidation in General
- Pass and notarize Board Resolution to liquidate/cancel/ wind up operation of LLC company and appoint liquidator
- A letter from the appointed liquidator who accepts his appointment as company liquidator to liquidate the company in Dubai or Abu Dhabi
- Get Registration & Licensing Application type (Form No. BR/1) from Economic department of the
Emirate (Dubai or Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah) - Bring Company’s Original License and different legal documents.
- Letter (Release letter) from the property owner in favor of the licensees apart from GCC nationals.
- Apply and find No-objection letters from (DEWA, FEWA, DU/ETISALATE, ministry of labor & immigration and RTA)
- Bank account closure certificate and no liability certificate for company liquidation in Dubai
- Shareholders resolution to dissolve the businesses from the Public Notary (for L.L.C companies)
- Company Dissolution letter from the Economic Development Department (DED).
Liquidation of Branch of foreign Company:
- Board Resolution from Parent Company for liquidation of the Branch office (notarized)
- Original License
- Original Certificate of Registration
- Apply and find No-objection letter from (Bank, DEWA, FEWA, DU/ETISALATE, ministry of labor & immigration and RTA)
