Expert Company Liquidation Services
A business liquidation in Dubai requires a high level of professionalism and expertise to execute, a lot of tedious legal and nancial process are involved which may take a very long time to complete, liquidation of a company should be a unanimous decision between the members of a company before the execution. The UAE commercial law regulates the liquidation of an LLC company in the following cases:
• Majority vote by the company shareholders in support of company liquidation.
• When the company goes bankrupt and leads to an accumulation of losses more than half the company’s capital.
• Mandatory court ruling to dissolve and liquidate the company.
• Voluntary liquidation by the company’s shareholders.
What is Company Liquidation
The company liquidation is the process of closing an LLC company, canceling the trade license and distributing the company assets and properties. In order to cease operations and activities, the shareholders should agree to dissolve the LLC company, sign a board resolution, assign a legal auditor, cancel any visas on the company sponsorship, get clearances from the government authorities, pay any outstanding debts or nes on the license and cancel the bank and credit accounts.
How to Wind Up or Close an LLC
Closing an LLC company in Dubai takes between 60-80 days to complete, this is the shortest time considering the company has no nes and nobody submitted a claim or objection, a few obstacles may arise during the winding up process, our professional and deep experience can easily remove any problem and speed up the liquidation process, the LLC liquidation steps are:
• Signing a board resolution between the shareholders to dissolve the company
• Canceling any labor cards, immigration visas and getting clearance letters
• Paying any outstanding debts on the company and clearing all the nes
• Appointing a legal liquidator to process the company liquidation
• Submitting all the documents to get the initial liquidation approval
• Publishing the dissolution decision on local newspapers for 45 days
• If nobody objected on the liquidation, the liquidator will issue the auditing report
• Canceling the partner visas and submitting the documents for the nal stage
• Pay the fees, cancel the trade license and the commercial register
• Cancel any bank accounts or credit accounts belonging to the company
Dubai DED License Cancellation
Closing a business and Canceling a trade license in Dubai mainland requires the approval of the Economic Department (DED), in case the company is LLC, the board resolution between the shareholders is signed in front of the Notary Public in Dubai, the DED will issue the initial and nal liquidation approvals, any claim or objection is submitted to the DED, the nal payment will include any nes on the license, if the trade license is expired, the DED will ne the company AED 200/- per day besides any nes from other government departments, the liquidation process ends by canceling the commercial trade register.
Many people confuse LLC company liquidation and professional license cancellation, canceling a sole establishment or a civil company does not require a legal liquidator, it takes less time, less paperwork and cost less money, the company owners are personally liable for any debts or nes on the license.
Closing or Canceling a Sole Establishment License
The steps to close a sole establishment or a branch of a sole establishment are:
• Cancel any labor, immigration, partner visa on the company
• Get clearance from government departments
• Get permission from the premise’s landlord
• The owner or the legal representative should do the submission
• Pay the fees and get the cancellation certi ficate
• Cancel any bank or credit account and credit cards
• For the branch cancellation, the owner should sign a request letter
Closing or Dissolving a Civil Company
The steps to close a civil company or a branch of a civil company are:
• Cancel any labor, immigration or partner visa on the civil company
• Get clearance from government departments in Dubai
• The shareholders should sign a company dissolving agreement
• Pay the fees and get the cancellation certi cate
• Cancel any bank or credit account belongs to the company
• For the branch cancellation, the company should issue a request letter
Closing or Canceling A Branch of Foreign Company License
To cancel the license of a foreign company branch, the main company should provide a board resolution, the resolution should con rm the branch cancellation, it should be attested by MOFA and translated to Arabic language, for this type of cancellation there is one more step, the Ministry of Economy approval, the DED will review all the documents and the clearance letters, after issuing the nal payment voucher and paying it, the license is canceled.
Special Company Cancellation
The economic department in Dubai offers a special type of license cancellation, this type is for the expired licenses for more than 2 years, the local partner should submit an undertaking letter, clear all visas and process the company cancellation, this is especially useful if the partner passed away or left the country without any contact.
Clearances Needed for Business Closing or LLC Liquidation
Whether you are liquidating an LLC company, canceling a sole establishment or closing a civil company, the clearance letters required from the following government departments:
• Dubai Electricity and Water Authority (DEWA)
• Ministry of Human Resources and Emiratisation (MOHRE)
• Immigration Department in Dubai (DNRD)
• Emirates Telecommunication Group Company (Etisalat)
• Emirates Integrated Telecommunications Company (DU)
• Ministry of Economy approval to cancel a foreign branch license
• According to license activity, additional government approvals may be required such as Dubai Police, RTA, TRA, Dubai Municipality, KHDA, RERA …etc.
The company liquidation in Dubai requires a careful and professional approach as lots of legal documents, governmental agencies and paperwork are involved, without the right guidance and follow up, the company liquidation may take several months to complete, selecting the appropriate kind of liquidation will help hasten the whole process and save cost, at Business EXPERT, we offer professional advice and better solutions to make your company liquidation easier in Dubai.