Company Liquidation Services in Dubai UAE

Companies can be profitable and continue operations for quite a long time, but for many businesses, there will be a need to end the company for various reasons.

What is Company Liquidation?

When a business wants to shut down and close a company they must undergo liquidation. Even while Dubai is a booming hub of trading and economic activity in the UAE, GGC region and even the world, there might be reasons for liquidation, like relocation to a different company, reaching insolvency, or the retirement of the owner of a business. This means settling debts with creditors, receiving all due receivables from debtors, and distributing the assets of a company to the shareholders. Basically the dissolvement of a company.

When a firm is liquidated, it stops doing business and no longer employs anyone. Once a company is liquidated, its business licence is cancelled and its name is deleted from the Trade Registry. The entity is then regarded to no longer exist.

Liquidation Process in the UAE follows the Companies Law (Federal Decree Law No. 32 of 2021) and bankruptcy is regulated by the Bankruptcy Law (Federal Decree Law No. 9 of 2016).

Business Liquidation Services in the UAE:

While liquidation can be done by a business owner, it is better to hire a liquidator, as they are more experienced with the law and actions regarding the liquidation process. Business owners can continue reading to understand more about the steps, requirements and conditions for a company liquidation in dubai.

Mubarak Al Ketbi Chartered Accountants provide excellent services regarding liquidation. Our team of experts are ready to make the process easier for you with their experience with company liquidation in the United Arab Emirates. The dissolvement of your company can be done seamlessly.

Role of a liquidator:

A liquidator is a UAE-registered agency or firm, often a chartered accounting or audit firm, who is appointed to sell the company’s assets in order to raise funds to pay off any outstanding liabilities

A liquidator may be appointed by shareholders through a resolution, or by the courts in the case of compulsory liquidation.

Once appointed, the liquidator will submit a formal letter of acceptance at the outset. Once all of its obligations have been accomplished, the liquidator will prepare a statement of affairs and a liquidator’s report, which are required to conclude the liquidation process.

a)	Liabilities and assets of the company are being assessed and managed: The liquidator assesses the financial status of the company, taking into account its commitments, debts, and assets. In order to optimise the recovery for creditors and stakeholders, they make sure the assets are accurately assessed, accounted for, and sold.
b)	Allocating proceeds and overseeing creditor claims: The liquidator is in charge of allocating the proceeds from the asset sale to creditors in accordance with the legally established priority order. In order to guarantee fair and equitable treatment during the distribution process, they examine and verify creditor claims.
c)	Interacting with stakeholders: The liquidator serves as an interface between shareholders, creditors, and staff members. They respond to questions and concerns, help with essential paperwork and procedures, and give regular updates on the liquidation process.
d)	Fulfilling administrative and legal requirements: The liquidator drafts and files the required legal documents, including the final liquidators’ report and statement of affairs, which summarise the company’s financial situation and the liquidation process’ results. Throughout the liquidation process, they make sure that all relevant rules and regulations are followed.
e)	Fulfilling the company’s obligations: The liquidator makes sure that any unpaid bills, commitments, and debts are appropriately handled and paid off. This includes paying for benefits that employees are entitled to, like gratuities and unpaid notice periods.

Overall, a liquidator should make sure that no problem regarding a business arises after it has been liquified.

Company liquidation process in the UAE:

There are various steps involved in the company liquidation procedure in Dubai and the rest of the UAE.

1.	The shareholders write and pass a resolution to dissolve the company. The shareholders draft and approve a resolution to dissolve the firm. A Notary Public must certify the resolution for LLCs incorporated in the United Arab Emirates. The resolution must be notarized and confirmed at the appropriate UAE embassy, followed by attestation at the UAE Ministries of Foreign Affairs and Justice, if the shareholders are not in the country.
2.	Selecting a liquidator and obtaining an official letter of approval from them: The liquidation procedure is supervised by a liquidator who is appointed. The liquidator provides a formal acceptance letter confirming their function as soon as they are appointed.
3.	Publication of a notice of liquidation: After obtaining a provisional liquidation certificate, a notice of liquidation is published in a public journal in both Arabic and English.
4.	Filing the shareholders’ resolution and required documentation: The relevant licensing body receives the shareholders’ resolution, all needed documentation, and payment.
5.	Notice period and visa management: The visas of employees working will be terminated with a 45-day notice period. Clearances are made with the Immigration Department and Department of Labour. Clearance letters are obtained from many services, like the Road Transportation Authority (RTA).
6.	Liquidation Report Preparation: The liquidator starts working on the report as soon as the notice period expires.
7.	Submission of the Final Report and cancellation fees: The pertinent Authority receives the final Report, all related documentation, and the necessary cancellation fees.
8.	Licence Cancellation Certificate Evaluation and Issuance: After reviewing the application and granting approval, the Authority issues a “Licence Cancellation Certificate,” which formally attests to the company’s liquidation.
9.	Documents Needed in Dubai for a Company Liquidation: In Dubai, the procedure of liquidating a firm is highly intricate. When liquidating your business, you have to abide by the laws and guidelines established by the UAE government. This also pertains to the particular paperwork you will have to produce in order to dissolve your business.

The documents needed are:

1.	Photocopy of the original trade licence.
2.	The memorandum of association (MOA).
3.	Power of Attorney.
4.	Photocopy of all shareholder’s passport.
5.	Photocopy of your Emirates ID.
6.	Resolution of the shareholders.
7.	Application form of deregistration.

There is no need to choose a company liquidator in the UAE Free Zones. Closing procedures for Free Zone Companies will change based on the guidelines established by the particular Free Zone Authority where the company is registered.

The Free Zone Authority will publish a notice of liquidation if a Free Zone company is closing, and you must tell them in advance. No Objection Certificates (NOCs) from utility providers and other relevant government/free zone authorities will be necessary for business owners to obtain.

They will have to cancel work permits and employee visas, shut bank accounts, and cancel employee visas after this paperwork is cleared. Lastly, the Free Zone Authority ought to provide business owners a formal letter of termination.