Company Liquidation in DMC
Dubai Media City (DMC) has cemented its position as the region’s most credible media community that houses the largest global and local media brands. It’s a community where freelancers, startups, SMEs and large enterprises co-exist, contributing to Dubai being named “The capital of Arab Media 2020.” They have Commercial Spaces, D/Quarters & Boutique Studios. Even with all of these benefits, there still may be a reason for Company liquidation in Dubai Media City.
| – | The process of Company Liquidation in DMC |
| – | How can Mubarak Al Ketbi Chartered Accountants help you in Company Liquidation? |
The process of Company Liquidation in DMC
The process of liquidation includes:
| 1. | Board Resolution: The shareholders and owners of the company must be aware of and agree for liquidation of the company. They must then pass up a resolution to close the company (with their signature as a form of approval). The resolution needs to be notarized by the Notary Public before being sent to the DMC. |
| 2. | Appointment of a liquidator: The company should choose a certified liquidator in Dubai, UAE (Like us!) to liquidate their company. They will be responsible for the entire process, from the Board Notice till the Final Liquidation Report. The name and address of the liquidator should be included in the Board resolution. It is important to choose a proper liquidator. |
| 3. | Letter of Acceptance from the Liquidator: The liquidator will then send a letter to the Dubai Development Authority as proof that they will liquidate the company in that free zone. The liquidator will gain power now as he now has access to the company’s personal details. |
| 4. | Comply with Economic Substance Requirements and Ultimate Beneficial Ownership regulations of the UAE. They will be discussed in this blog: (Add link here) I will add an article dedicated to those rules, add it to the blog section of the makca.co website, and remove this red part from the final article on the website. |
| 5. | Cancel all work visas and company bank account: Official government agencies and utility companies, such Etisalat, DEWA, and Dubai Customs, must submit clearance letters. In case a car is registered under the company’s name, the RTA must provide the NOC. If the business has a PO Box, clearance from Emirates Post needs to be obtained. |
| 6. | Return original documents: It is required that you return to the free zone authorities any original documentation that you were given at the time of incorporation. The original trade licence, tenancy contract, investment service agreement, memorandum and articles of association, share certificate, certificate of incorporation, and so on are among the documents you have to return. |
| 7. | Newspaper Advertisement: It is required of you to notify the public about your company’s liquidation through a newspaper advertising. It is necessary to publish the advertising in regional Arabic and English newspapers. Thereafter, there will be a 45-day grace period during which other parties may bring forth claims about the company’s dissolution. |
| 8. | Submission of Liquidation Report: When the liquidator delivers the final liquidation report to the free zone government, the company liquidation procedure in Dubai Media City will be completed. The Registrar removes the company’s name from the free zone register and cancels its trading licence after receiving the report. |
How can Mubarak Al Ketbi Chartered Accountants help you in Company Liquidation?
Due to the potential for needless delays and problems caused by omitting any paperwork or stage, the DMC liquidation process may be costly and time-consuming. Being DMC Approved company liquidators, Mubarak Al Ketbi Chartered Accountants can assist you in navigating the challenges and obstacles of liquidating your business in the United Arab Emirates. Get in touch with us right now if you have any inquiries or would want to collaborate; we guarantee your satisfaction in your work!
