How to Liquidate a Company in Dubai, UAE
There are two ways a company can be liquidated in the United Arab Emirates – Voluntary Liquidation & Involuntary Liquidation.
When it comes to Voluntary Liquidation, the Board of Directors must first meet. Every member of the Board of the Directors must agree to wind up the company and liquidate its assets. This resolution must be attested by a Notary Public, and the legal document also needs to contain the name of the company liquidation firm entrusted with the task of liquidating the company’s assets. This must be an approved company liquidator which offers company liquidation services in Dubai and the rest of the United Arab Emirates.
The company liquidation firm must also agree in writing to liquidate the company that is being wound up. A Liquidation Form is then submitted to the Department of Economic Development in the emirate where the company is located. For instance, if the company is located in Dubai, the corresponding authority would be the Department of Economy and Tourism, Dubai. For Sharjah, there is the Sharjah Economic Development Department. Abu Dhabi has the Abu Dhabi Department of Economic Development.
The decision to dissolve the firm must be published in an Arabic newspaper so that creditors can make their claims. The Department of Economic Development has a 45-day grace period so that all outstanding claims can be settled. All work visas, including the residence visas of the family members of employees, must be cancelled during this time period. No Objection Certificates are subsequently to be obtained from the Ministry of Labour and the General Directorate of Residency and Foreign Affairs Department.
Utility and communications bills must also be cleared and No Objection Certificates obtained from the service providers, such as DEWA in Dubai and du / Etisalat.
The Government approved company liquidator then submits a Final Audit Report which certifies that all outstanding dues have been settled to the satisfaction of the creditors and that there are no further claims pending upon the company. The Department of Economic Development then issues the Liquidation Certificate, which states that the process of company liquidation has ended. With this, the company ceases to exist for all legal and official purposes.
It is always recommended that all creditors be paid prior to commencing the liquidation process, so that any possible delays are avoided. If you need help with company liquidation in Dubai or anywhere else in the United Arab Emirates, you need to get in touch with an approved liquidator. FlyBiz is one of the approved liquidators in Dubai and can be reached at +971 55 113 4789 for assistance with company liquidation in Dubai and the rest of the United Arab Emirates.
Involuntary Liquidation happens when creditors a company approach the Court for liquidation of the company and its assets. A Liquidator is appointed by the court, which liquidates the assets of the company and pays back the creditors from the proceeds. In case these are not sufficient to clear the outstanding financial liabilities of the company, the company is liquidated and one or more experts appointed by the Court work with the business owner(s) to clear the remaining debt within a period of three years.