Company Liquidation in UAE
Below are the 7 steps involved in the process of liquidation of Companies in Dubai Development Authority(DDA), previously known as Dubai Creative Clusters Authority (DCCA)
STEP 1.
The Company should submit a notice to the DDA free zone authority mentioning, the reason behind the closure of the entity, and one month prior to the liquidation. Otherwise, there will be some charges for cancelling the lease agreement.
STEP 2.
A board resolution (or Shareholder’s resolution in case of FZE/FZCO) for De-registration must be attested in front of free zone executives. If the shareholders are outside the country/the owner of the company is a foreign company then the resolution has to be notarized and attested from the UAE embassy of that country and the same has to be legalized from Ministry of Foreign Affairs, UAE.
STEP 3.
The company must return all office keys and transponders (It is not applicable for the companies in Leasehold or Freehold).
STEP 4.
he Company has to provide a copy of the New paper advertisement ie; in one in English and another one in Arabic.
STEP 5.
Company Original license, Certificate of formation & Share certificates, Lease agreement and the Original Department of Economic Development License (if it is issued through DDA)
STEP 6.
The following clearances are mandatory from different authorities;
- Clearance from Dubai Customs Department
- Clearance from DDA Finance Department
- Clearance from DDA Government Services Department
- Clearance from DDA IT Section
- Etisalat Clearance. (If Required)
- Facilities Management Clearance
STEP 7.
Liquidation report must be prepared by a Dubai Auditor
About Dubai Development Authority (DDA)
Dubai Development Authority (DDA) was previously known as Dubai Creative Clusters Authority (DCCA) following law 10 of 2018. The Authority’s Center of Interest and its main aim is as mentioned below:
- Real estate planning and development control
- Regulatory and licensing services governing all strategic projects and industries within their area
- Development of Industries
Dubai Development Authority (DDA) plays a major role in the progress and to bring an economical evolution in the region. It has already set its benchmark in maintaining the global standards for urban planning, real estate development, and municipal and business services. Dubai Development Authority (DDA) entitles a very comfortable business industry for the excellence of its stakeholders, which includes real estate developers and their strategic partners for contributing to bringing an economical evolution to Dubai. They emphasize in providing the best services, strategies & values to transform in excelling globally.
What is Company Liquidation?
Company Liquidation is a process where a company takes a decision to wind up its business operations as it can no longer continue the business operations. When a company undergoes liquidation, they sell their assets so that they can pay back their debts/liabilities/obligations. The amount that is collected after selling the assets is shared by the shareholders of the company. There are different kinds of companies in the UAE, such as LLC, Sole Establishment or a Free Zone. When a company is being liquidated in the UAE the assets and properties are distributed to the creditors, shareholders of the company. In other terms, Company Liquidation is also termed as winding- up of the business. Checklist before liquidating your company in the UAE
- Settling down all utility bills
- Paying off Telecommunication Bills
- Closure of Bank Accounts
- Preparing the Final Audit Report
- Cancellation of all the visa under the license
How can Emirates Chartered Accountants Group Help you with Company Liquidation in UAE?
Liquidating a company in the UAE can encounter lots of challenges during the entire process and it is also a stepwise process where time is consumed gradually.
- We can guide and support you to complete all the legal formalities and procedures to liquidate your company in the UAE.
- Support and Guidance will be provided to Deregister for VAT in UAE.
- As we have approved Auditor of all the Free Zones in the UAE, we will extend our support to prepare the final audit report.
- Plan a cost-effective Company Liquation by avoiding unnecessary expenses.
Company Liquidation in Free Zones
There are different free zones in the UAE and each of them has their own set of procedures to follow while liquidating a company in UAE Free Zone but almost all the free zones have the same set of procedures for Company Liquidation. The basic requirement for Free zone Company Liquidation are as mentioned below:
- The Board’s Resolution is required to liquidate the Company in free zones.
- Only registered and approved liquidators in the UAE must be appointed to liquidate a company in a free zone.
- All the visas of employees should be cancelled and cleared while liquidating a company in a free zone.
- Liquidation letter has to be submitted only to a registered and approved auditor for free zones in the UAE.
- Clearance Certificate from free zone authority.
- No Objection Certificate from the Business Unit.
- Clearance Certificate from CLD Government section.
- All fees/charges/expenses are to be settled within that particular free zone in the UAE.
Emirates Chartered Accountants Group ensures clients apt procedures for Liquidation of Company in the UAE and Bahrain. We house a dedicated professional team for Company Liquidation Services where you can get in touch with our team for an initial consultation on how to proceed within the most appropriate procedure.
Book a Free Consultation
for Liquidation of Company in UAE
Mr. Viju
viju@emiratesca.com
+971 – 554028899
Sep 25,2024VAT Treatment for Charities in the UAE
