All You Need to Know about Company Liquidation in the UAE

All You Need to Know about Liquidation of Company in Dubai

Got questions about liquidation of company in Dubai & deregistration of company  procees in the UAE? We answer the most common ones in this blog post.

Is the cancelation of the license a necessity  when closing a business?
Knowing that you are no longer in the company is vital for local government agencies so that you can escape any accrued fines and violations imposed on your license if It is not updated on date of expiry
It is necessary to discharge your obligations against creditors and partners and
protect your rights and assets if you are in a shareholding business. When you want to start a company again, it's always wise to put your goodwill and market integrity in perspective.
 
Formalities for cancelling your commercial enterprise licence
Cancelling the licence relies upon on the shape of your company. For establishments and sole proprietorships, the procedure is easy because all you want to do is to apply for cancellation via DED and acquire all applicable clearances from:
• Ministry of Human Resources and Emiratisation
• Directorate of Residency and Foreigners Affairs
• The relevant water and electricity authority
• The leasing entity etc.
However, for businesses with shares, the manner is longer as it calls for liquidating the shares, gathering the money owed and paying the creditors before finalising with DED.
 
Coporation that  require a liquidator
You needto employ a liquidator if the legal shape of your corporationis considered one ofthese:
• General Partnership
• Limited Liability Company
• Simple Limited Partnership
• Public Joint Stock Company
• Private Joint Stock Company

What are the steps involved in canelling all kinds of business?

  • File a notarized General Assembly documents announcing the liquidation of the corporation and the selection of a trustee; Arrange an official letter acknowledging the responsibility by a licensed liquidator;

  • Register for cancelation by filling out the form needed using DED or other authorized channels.

    DED must issue a Certificate of Liquidation.

  • Place the liquidation notice in two regional newspapers.

  • The notice offers the debtors a recovery period of 45 days to file their claims from the date of issue.

  • Send a   statement letter from the liquidator and the partners to the DED showing no dispute from any other party during.  

  • Collect the permissions needed by other government agencies to revoke a permit.

  • Revoke the companies card at the ministry of HR.

  • Cancel visas from international partners sponsored by the organization to the respective         Directorate-General for Residency & International Affairs.

  • Include all the above documentation for final termination approval.

  • After payment of the required fees you can obtain a certificate of deregistration (cancellation).

Freezing a trading permit
Freezing a license is different from fully eliminating a licence.
In Dubai, companies can keep their trade licenses ineffective by charging a certain freezing fee for three years. We cannot, however, expand it past the particular time frame.

What relevant permits are required to revoke a private shareholding business?
You will get Ministry of Economy authorization.


What precise permission is required to cancel public shareholdings?
You will get the approval of the Securities and Commodities Authority to terminate a public shareholding firm.   


Which are the steps to get a civil works firm to close?
• Fill out all the mandatory cancelation document.
• Terminate the firms card at the Department of HR .
• Cancel visas from international partners sponsored by the organization to the relevant Directorate-General for Citizenship & Foreign Affairs.
• Collect the permissions needed by other government bodies to revoke a permit.  
• File a notary officially approved Partnership Cancelation contract.
• Issue the following documentation and obtain certificates for cancelation of licences.


What protocols and documentation are required for canceling a sole proprietorship licence?
For sole proprietorships, in addition to evidence of residence revocation for non-Gulf nationals, you need a no objection letter from the Ministry of Human Resources and Emiratisation.

What are the requirements for a license being freezed?

You must submit:

  1. A correspondence from the corporation or organization demanding temporary suspension of the licensing.
  2. A letter from the Ministry of Human Resources and Emiratisation stating the absence of approved persons on the license.
  3. A report from the DED inspection division.

Can a firm's dissolution be terminated before payment voucher is delivered?
Indeed, with the authorization of the DED Department of Legal Affairs.

What will happen to the branch if it dissolves a business founded in another emirat but maintains a branch in another emirate?
The branch dissolves.


What are Private Liquidation Conditions?
• The expiration date for the permit would be much more than 2 years.
• The Emirates Partner recognizes its duty towards the Business.
• The organization must include supporting documentation which validate the dissolution application, such as a partner's escape.
• The company will send a letter from the Ministry of Human Resources and Emiratisation stating that there are no approved entities on the license.

 

Read more about liquidation and company deregistration services in Dubai. Feel free to contact us on +971 52 3750920 for a confidential advice on companty closure in Dubai and assitance with your current situation. You can arrange a call back at a suitable time through our website (www.mnvassociates.com), or book a meeting with 100% confidentiality.

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