Company liquidation In Dubai

Company Liquidation Services in Dubai

Now that you’ve made the painful decision of liquidating your company, it is time to get everything together to start dissolving your business. We have helped hundreds of clients just like you minimize their legal liabilities and possible financial losses during their company liquidation process, and we can help you too.

For a successful liquidation, you have to meet all the legal requirements. We have a complete understanding of the existing legislation and will coordinate with authorities to guarantee a hassle-free liquidation for our clients. We can even assist you through the business name cancellation process, employee payments, cancellation of taxation registrations, and any other related legal requirements. Each method involves certain legalities that we will assist you with in detail. We can also find you a third party who will procure the liquidating company and deal with the related concerns.

What Happens During Company Liquidation in UAE?

Liquidation is the process by which a company or a part of the company, sole establishment, Free Zone Company, or institution closes its business/operations. During liquidation, assets and property of the corporation or business is distributed to their creditors, shareholders, and owners of the United Arab Emirates-registered Company. Liquidation is also known as winding-up or dissolution.

Liquidation happens when a corporation doesn’t have liquid funds to hold day to day transactions, creditors aren’t being paid because of the lack of money, or the company commits a serious offense of some type. Company liquidation in Dubai sometimes can be compulsory and noted as a creditor’s liquidation or voluntary.

You need to appoint a liquidator if your company is a: General partnership, a Limited Liability Company, Simple Limited Partnership, a Public Joint Stock Company, or a Private Joint Stock Company. A liquidator is a UAE registered agent or firm that represents the company in court. They are responsible for settling all remaining debts of the company and selling any remaining assets.

MSZ Consultancy will take on the challenge of closing your business in the UAE. We will help with everything from settling your last utility bill, canceling visas, closing the bank account, preparing the final audit, and any other liquidation service that is needed. When you trust MSZ Consultancy with your company liquidation in Dubai, you’re simplifying the legal procedures and avoiding additional costs that may pop up. Let us help you by providing the best company liquidation services in Dubai and the UAE.

Types of Liquidation

Company liquidation in Dubai can sometimes be compulsory and noted as a creditor’s liquidation or voluntary (shareholders’ liquidation, sometimes voluntary liquidations are controlled by creditors).

1. Compulsory Liquidation
   Compulsory liquidation happens when the court gets involved and orders the company to be dissolved. A legal appointee will be assigned to audit the company’s assets. The assets of the company are distributed to the contributors and creditors depending on the priority of claims.

2. Voluntary Liquidation
   Voluntary liquidation happens when a company is facing financial difficulties, and the shareholders decide to wind up voluntarily as they are unable to pay their creditors. During this type of liquidation, the creditors are given priority over the shareholders.

The Process of Company Liquidation in Dubai, UAE

1. Board of Directors Meeting
   When a company decides to liquidate, the board will hold a special meeting to discuss the liquidation procedure. At this meeting, a liquidator will be appointed to oversee the process and ensure that requests from creditors are fulfilled.

2. Submission of Application for Liquidation
   The company will need to provide official documents verifying the decision to liquidate, including the name of the appointed liquidator, the original registration certificate, and the liquidator’s credentials. All of these documents must be notarized in order to be considered valid.

3. Publication of the Dissolution Decision
   To dissolve the company, it is required to publish an announcement in a local Arabic newspaper. This will inform the existing creditors and give them an opportunity to make their claims. The notice must be published at least 45 days before winding up the company so that the creditors have enough time to make their claims.

4. Liquidator Acceptance
   Before shutting down a company, it is important to have an approved liquidator or liquidation firm who will take on the responsibility of liquidating the company and its assets. The liquidator has to be informed in writing that they are being appointed as the official liquidator to oversee the process of closing. It is crucial to keep the liquidator informed at every step of the process to ensure a smooth and successful liquidation.

5. Notice Period
   Companies that are registered in a particular emirate, such as Abu Dhabi or Ras Al-Khaimah, are required to provide a 45-day notice period to the Department of Economic Development of that emirate if they have decided to close down.

6. Visa Cancellation & Settlement of Dues
   Please note that during the 45-day grace period provided by the Department of Economic Development, it is required that all company-related visas be cancelled. This includes the work visas of employees/partners, as well as the residence visas of their spouses and children (if applicable). After the cancellations have been made, a No Objection Certificate must be obtained from both the Ministry of Labour and Ministry of Immigration. It is important that all outstanding utilities and communications bills be paid in full, and that NOCs are obtained from the relevant service providers (such as DEWA for Dubai and Etisalat/du for communications).

7. Liquidator Report
   It is advisable to settle any outstanding dues owed to creditors, clients, or other third parties before deciding to shut down a company. The Government-approved liquidator should submit a final audit report stating that all dues have been paid and there are no pending claims on the company after the 45-day grace period. This will help avoid any further delays.

8. Liquidation Certificate
   After ensuring that a company has settled all its creditors' claims and outstanding dues, the Department of Economic Development in the company's location issues a Final Liquidation Certificate. For instance, companies registered in Fujairah should obtain it from Fujairah Department of Industry and Economy while those based in Ajman should get it from Ajman Department of Economic Development. This certificate indicates that the liquidation process has been completed successfully.

This is the final step in the process. Once the certificate is issued, the company no longer legally and officially exists.