Liquidation of companies in Dubai is the process of closing down a limited liability company, cancelling the trade license and distributing the company’s assets and properties. In order to cease operations and activities.
Liquidating companies in Dubai requires a high degree of professionalism and expertise to implement it because it requires many legal and financial procedures that may take a long time to complete, and liquidating the company must be a unanimous decision among the company’s shareholders before implementation.
It usually takes 60-80 days to close any company in Dubai, which is the shortest possible time if the company has no fines and no one has filed a claim or objection, noting that some problems may arise during the liquidation process, and we at our company have extensive professional experience that enables you to easily remove any problem and speed up the liquidation process.
Steps to liquidate a company in Dubai
- Signing of the Board of Directors’ resolution among the shareholders to dissolve the company.
- Cancel work cards, immigration visas and obtain clearance letters.
- Pay any outstanding debts owed to the company and pay all fines.
- Appointing a legal liquidator to liquidate the company.
- Submit all documents to obtain initial liquidation approval.
- Publish the dissolution decision in local newspapers for 45 days.
- If no one objects to the liquidation, the liquidator will issue an audit report.
- Cancel partner visas and submit documents for final stage.
- Pay fees and cancel the commercial license and commercial register.
- Cancel any bank or credit accounts of the Company.
Cancellation of a license in Dubai issued by the Department of Economic Development
This requires the approval of the Department of Economic Development, in the event that it is a limited liability company, and the decision of the Board of Directors is signed between the shareholders before a notary public in Dubai, and the Department of Economic Development issues the initial and final liquidation approvals, noting that any claim or objection will be submitted to the Department of Economic Development, and the final payment receipt includes any fines on the license. If the commercial license expires, the Department of Economic Development will fine the company AED 200 for each day in addition to any fines from other government agencies. The liquidation process ends with the cancellation of the commercial register.
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The difference between liquidating a limited liability company and canceling a professional license
The cancellation of a sole proprietorship or civil business company does not require a legal liquidator, but takes less time, fewer transactions and less financial cost, and the company owners are personally liable for any debts or fines on the license.
The steps to close a sole proprietorship or a branch of a sole proprietorship are:
- Cancellation of work visas, immigration, partner on company sponsorship.
- Obtaining a permit from government departments.
- Obtain permission from the property owner.
- The owner or legal representative must submit the application.
- Pay the fees and obtain the cancellation certificate.
- Cancel any bank account, credit account and credit cards.
- For branch cancellation, the owner must sign a cancellation letter.
The steps to close a civil works company or a branch of a civil works company are:
- Cancel any work, immigration or partner visa under company sponsorship
- Obtaining a permit from government departments in Dubai
- Shareholders must sign the company dissolution agreement.
- Pay the fees and obtain the cancellation certificate
- Cancel any bank account or credit account belonging to the company
- For branch cancellation, the company must issue a cancellation letter.
Permits required to close down a business or liquidate a company in Dubai
Whether you are liquidating an LLC, dissolving a sole proprietorship, or closing a civil business, clearance letters are required from the following government departments:
- Dubai Electricity and Water Authority (DEWA)
- Ministry of Human Resources and Emiratisation
- General Directorate of Residency and Foreigners Affairs in Dubai
- Emirates Telecommunications Group Company (Etisalat)
- Emirates Integrated Telecommunications Company (du)
- Ministry of Economy approves cancellation of foreign branch license
- Depending on the license activity, additional government approvals may be required such as Dubai Police, RTA, TRA, Dubai Municipality, KHDA, RERA, etc.
Therefore, liquidating companies in Dubai requires accurate and professional information, many legal documents, government agencies and transactions, and without proper guidance and follow-up, liquidating a company may take several months to complete.
Private cancellation of company in Dubai
The Dubai Economic Department offers a special type of license cancellation, which is used for licenses that have expired for more than two years. Here, the local partner is required to submit a letter of undertaking, cancel all visas and cancel the company. This is especially useful if the partner has died or left the UAE and there is no longer any contact with him.
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Choosing the right type of liquidation helps in expediting the entire liquidation process and saving costs, and we at our company will provide you with professional advice and best solutions to make your company liquidation easier in Dubai.