MAZ Chartered Accountants is regulated and approved audit firm in UAE. We are also registered as an approved company liquidators with DIFC in Dubai, UAE. Company liquidation is a long tedious and contentious process, involving filling of myriad application, initiating the de-registration process and negotiating with employees and several government departments. To get off the hook, you need proper completion of application forms, meticulous de registering of certificates from various government agencies.
Liquidation, dissolution or de-registration of a company is referred to the closure of business operations after paying off the liabilities to the creditors and distributing the assets of the company to its shareholders & owners. This is the details legal procedure, the regulation of land is taken place to ensure all stakeholders are being considered at the time of winding up the company in Dubai, UAE.
Why is liquidation required?
. There are two principal reasons why the liquidation of a company may be necessary in the UAE:
. The original purpose for setting up of the company is fulfilled and the entity is no longer required; The company is considered to be insolvent.
Types of liquidation
Voluntary Liquidations – Shareholders of a company may elect to liquidate a solvent company or the directors of an insolvent company may choose to cease further trading and liquidate its assets in order to pay its creditors.
Compulsory Liquidations: If a company’s debts are not paid on time, creditors may request the courts to liquidate the company in order for them to collect their dues. The courts may decide to force a company to liquidate and sell its assets in order to pay outstanding debt.
How to Liquidate A Company in Dubai & UAE
The first thing to do in de-registering a company is to appoint a liquidator firm. Only registered and approved liquidators in the UAE must be appointed to liquidate a company.
PROCEDURE TO LIQUIDATE OR WIND UP LLC COMPANIES
. Prepare a board of resolution calling to cancel the company by all partners concerned. The resolution needs to authenticated through court procedures.
. Board needs to appoint a liquidator and which needs to mention in the resolution.
. Apply for preliminary approval or initial cancellation of license at Department of Economic Department.
. Newspaper advertisements in 2 Arabic newspapers.
. Cancellation of visas, establishment cards, labor cards etc.
. Clearances and bank account closures.
. Submission of all documents to DED after 45 days of process to get a final liquidation certificate.
Different free zone has different procedures for liquidation but most of them have the same process
. Resolution from Board for liquidating the Company and appointment of liquidator (registered and approved liquidators in UAE)
. Need to take clearances from customs, Etisalat, and other relevant departments.
. Liquidation letter by registered auditor for FZE & FZCO only to be submitted
. All outstanding dues are to be settled with the free zone.
. Need to return all documents of the company.