Business Liquidation in UAE

Company liquidation is a legal insolvency operation which involves winding up the business operations of an entity. Business liquidation includes numerous procedures, the major ones being the appointment of a liquidator, notifying government authorities and cancelling the business license. The liquidation procedure is dependent on the ownership structure, the method of liquidation and the registration in jurisdictions. LLCs formed in the UAE must get their resolution certified by Notary Public. Cases wherein shareholders are not present in the country, this can be done at the relevant UAE embassy. The attestation must be done at the UAE Ministry of Foreign Affairs and Ministry of Justice.

UAE Business Liquidation Process

Hire a liquidator which also involves getting an acceptance letter from the liquidator appointed
Publish a liquidation notice in a public journal, in English as well as Arabic
File the resolution of the shareholders to the licensing authority that is in charge, along with the required documentation and fee
Prepare the liquidation report(by the liquidator) following the completion of the notice period(applicable in certain cases)
Send the final report along with the documents and the fee to the authority concerned.

The final stage involves the examination of the application by the authority and granting he ‘license cancellation certificate’, provided all the required documents have been provided and are accurate.

Company liquidation in UAE- Documents required

Copy of the license
Copy of the Memorandum of Association (MOA), with any changes
Power of Attorney, if any
Copies of all shareholders’ passports
Copy of your Emirates identification
Resolution of the shareholders
De-registration application form

We provide liquidation services for all entities – limited liability companies, free zone companies and offshore companies across UAE, Ajman, Dubai, Fujairah, Ras Al Khaimah, and Sharjah. We also assist in the preparation of Board resolution, power of attorney, audit report, liquidator’s statement etc., which are mandatory documents required for liquidatio

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Liquidation services include:

Appointment as liquidator
Administer the liquidation process
Supervise asset disposals
Direct payments to creditors
Liaise with liquidation accountants
Process third party liquidation costs
File de-registrations and other formal notifications
Administer the complete documentation
Supervise the ongoing and liquidation specific accounting requirements

Three types of company liquidations can be seen in UAE free zones

There are several free zones in UAE, and each of them has its own set of rules and processes. Each emirate’s local government controls the free zone businesses there.

Company liquidation

Most businesses choose this option if they have no obligations or if they can pay off all of their debts within six months and start with a declaration of solvency.

Creditors’ liquidation

Creditors winding up occurs when a company adopts a decision to cease operations and has a meeting with its creditors thereafter.

Bankruptcy

According to UAE Commercial Transactions Law No. 18 of 1993, the court can commence the procedure.

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Business Liquidation in UAE

UAE Business Liquidation Process

Company liquidation in UAE- Documents required