What is meant by liquidation in UAE?
Liquidation can be referred to as the winding up of a company or its activities. When the company goes for liquidation in UAE, its existence basically comes to an end.
The individuality f the company in the market comes to an end when it goes to wind itself up. Company liquidation in UAE can be carried out by following a certain set of steps. Companies can also hire the liquidators in UAE to get some help for the whole process click here.
Companies prefer hiring liquidators so that they may get some ease in such a situation of distress when the company falls apart.
License cancellation for liquidation of the company in UAE
Company’s dissolution notice subsequent to the liquidator’s appointment
The first step company has to pass in order to liquidate is that of passing the resolution of closing the company. This is carried out in a meeting where all the shareholders are also present, notary public attests the resolution of the company’s disclosure. In case that the shareholders are not present in the country, the resolution should then be attested and notarized from the embassy of that country in the UAE. Also, the resolution will be attested by the UAE Ministry of Foreign Affairs and Ministry of Justice
For the companies who are registered in the free zones, they do not need to attest the resolution from the notary public. For the resolution of the free zone companies you can get best liquidators in UAE like Farahat & co to present you, the name of the liquidator should be included along with his appointment details and address.
It is to be noted here that in case of sole establishments, the above-mentioned step is not needed.
Documents required for company liquidation in UAE
- Copy of the license
- Copy of Memorandum of Association Memorandum of Association (MOA) with all the changes if any
- Power of attorney if possessed
- Resolution of the shareholders
- Passport copies of the shareholders
- Copy of the Emirates ID of the related people
- Application form of deregistration of the company
After the submission of the documents mentioned above, the company needs to pay the initial payment to the Department of Economic Development (DED) so that the primary liquidation certificate may be issued to the company. This step is crucial as it is considered to be a piece of evidence for the procession of the company’s liquidation.
After obtaining the primary liquidation certificate, the company should move towards to advertise the news in the local newspaper. This is carried out in order to get a better understanding of the company’s liabilities in the time period of 45 days. If the company appears to have any liabilities due to the claims came up in the respective 45 days, it will have to pay them otherwise not. In the 45 days, the company can get the clearances from different departments including that of labor, immigration, telecom and more authorities
Note that for the LLCs, the advertisement of company liquidation should be published in 4 newspapers in the Arabic language.
After the notice period is over, the company needs to submit the liquidation report along with the newspaper’s advertisement copies.
After the submission of the above-mentioned documents, the final payment will be done and the final certificate of the license cancellation will be issued to the company upon liquidation in UAE.