Company Liquidation in DSO:
Dubai Silicon Oasis (DSO) is a 15-minute city for business and sustainable living, dedicated to fostering Knowledge & Innovation. A 15-minute city is that you can reach from one part to another in Dubai Silicon Oasis (DSO) Free Zone within 15-minutes maximum. There are over 30,000+ registered company members operating in multiple industries in DSO. Even with all of these benefits, there still may be reasons for Company Liquidation in Dubai Silicon Oasis (DSO). This article will discuss that, as well as:
| – | What is Company Liquidation? |
| – | Process of company liquidation in DSO: |
| – | How can Mubarak Al Ketbi Chartered Accountants help you in Company Liquidation? |
What is Company Liquidation in DSO?
When a business wants to shut down and close a company they must undergo liquidation. Even though Dubai is a thriving centre of trade and commercial activity in the GGC, the UAE, and even the world, there are a number of reasons why a firm may need to liquidate, including moving to a new site, becoming insolvent, or the owner retiring. This entails paying off creditors, collecting all outstanding receivables from debtors, and allocating a company’s assets to its shareholders. essentially the dissolution of a business.
How can Mubarak Al Ketbi Chartered Accountants help you in preparing a liquidation audit report?
The process for company liquidation in DSO is as follows:
| 1. | Submit a liquidation notice to the free zone authority: In order to wind up their Dubai Silicon Oasis company, business owners are required by the free zone government to file a notice of liquidation first to the free zone authority. The notice must clearly indicate the reason for the company’s dissolution. The Dubai Silicon Oasis Authority free zone is governed by the Dubai Integrated Economic Zones Authority (DIEZ). |
| 2. | Present a board resolution to the authority: You must pass and submit a board resolution to the Authority on the company’s liquidation after the liquidation notice is filed. Every shareholder and director must sign the board resolution. Before being presented to the free zone authority, the board resolution needs to be attested by the Notary Public. |
| .3 | Appoint a company liquidation: In Dubai Silicon Oasis, the process of corporate liquidation must be carried out by an appointed liquidator. You have the option to choose an audit business with a UAE licence as your company’s fficial liquidator. |
| 4. | Submission of Liquidator’s Acceptance letter: The liquidator must submit an acceptance letter to the free zone authority upon the appointment. At this moment, the official company liquidator takes over the powers previously held by the shareholders and directors. |
| 5. | Cancel the Visa and the Establishment Cards: It is necessary to terminate all company-issued visas, including employee visas, prior to closing a business in Dubai Silicon Oasis. Remember to cancel the company’s establishment card as well. |
| 6. | Obtain clearance certificates: To properly shut down a business in Dubai Silicon Oasis, you must get clearance certifications from a number of free zone ministries, government agencies, and utility service suppliers. Clearances from the following authorities are required: Department Etisalat/Du DEWA, Dubai Customs, Dubai Silicon Oasis Facilities Management, Dubai Silicon Oasis Finance Department, Dubai Silicon Oasis Government Services. |
| 7. | Return original documents to the authority: During the liquidation procedure, you must return all of the paperwork that was provided to you by the free zone authorities at the time of incorporation. A trade licence, tenancy contract, investment service agreement, memorandum and articles of association, share certificate, certificate of incorporation, and other original documents are among them. |
| 8. | Close the bank account: At the moment of liquidation, your company’s bank account, if it is open, has to be closed. Additionally, you need to get a letter from the bank closing your account and turn it into the free zone authorities. |
| 9. | Return the premises keys: Your lease is also terminated in Dubai Silicon Oasis upon the liquidation of a business. It indicates that you are no longer permitted to use the area. As a result, you have to give the free zone authorities back the keys to your store, office, or warehouse. |
| 10. | .Publish a newspaper advertisement: Newspapers in both Arabic and English must run an advertisement informing readers of the company’s impending liquidation. Throughout the 15-day lock-in period following the date of publication, interested parties may submit a claim. Any claim submitted after the grace period has passed will not be considered by the free zone Authority. |
| 11. | Apply for VAT deregistration: The majority of businesses that are in liquidation neglect to file for VAT deregistration, which results in significant fines and delays the winding-up procedure. Businesses that are currently registered for VAT must apply for deregistration within 20 days after ceasing to do so. Companies who disregard this rule will be fined AED 10,000 by the Federal Tax Authority (FTA). |
| 12. | Comply with ESR regulations: Businesses in the United Arab Emirates going through insolvency should determine if they are subject to the Economic Substance Regulations (ESR). Your organisation must comply with ESR rules if it has engaged in any of the nine relevant activities. Businesses who don’t fulfil their ESR responsibilities will face heavy fines. The following nine businesses are relevant: intellectual property (IP) businesses, banking, insurance, holding company, headquarters, shipping, leasing financing, investment fund management, and distribution and service centre businesses. |
| 13. | .Submission of liquidation report: When the liquidator delivers his final liquidation report to the free zone authorities, your company’s liquidation procedure will be over. Following submission, the company’s trade licence will be revoked and its name removed from the Register by the free zone Registrar. To create perfect liquidation reports, you must work with the top corporate liquidators in Dubai. |
The process of company liquidation in DSO:
Why is it important? Firstly, it is required by most free zone authorities (including Meydan Free Zone) to prepare a liquidation audit before the liquidation of a company. Secondly, a liquidation audit helps you to prepare for company liquidation. This is important as it helps to properly liquidate a company by selling all business assets and paying off all of the liabilities. You can say it is clearing a business account to zero.
How can Mubarak Al Ketbi Chartered Accountants help you in Company Liquidation?
The liquidation in DSO procedures can be time-consuming and expensive because missing any step or paperwork can result in unnecessary delays and issues. Mubarak Al Ketbi Chartered Accountants can help you navigate the problems and difficulties of liquidating your company in the United Arab Emirates, as we are DSO Approved company liquidators. If you have any questions or want to work with us, Contact us today, and we promise your satisfaction!