What is liquidation?
When a business wants to shut down and close a company they must undergo liquidation. Reasons for liquidation include 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 license is cancelled and its name is deleted from the Trade Registry. The entity is then regarded to no longer exist.
What are the procedures for de-Registration of a commercial company which expired less than two years ago?
Please keep in mind that in order to cancel your trade licence, you must visit a Service Center. De-registration of a commercial business applies to all legal forms of commercial firms that expired over the last two years:
First stage:
| – | The minutes of the general assembly meeting that approved the company’s liquidation and appointed the liquidator must include the liquidator’s name and be notarized by a notary public. |
| – | The liquidator must provide a letter of acceptance and paperwork, including a copy of their licence, accountant registration certificate, and notarized signature specimen. |
| – | Payment of AED 520 to get a certificate of the company’s dissolution and appointment of the liquidator, with the permission of the legal consultant. |
| – | Advertise in two Arabic newspapers for one day, with a 45-day deadline for creditors to make their claims. (The liquidator will carry out the advertisement.) |
| Final Stage: |
| – | The original newspapers with the advertisement and the company’s final report must be presented. |
| – | A declaration from the liquidator and shareholders that no other entity has raised any objections within 45 days of the advertisement date. |
| – | The employee’s resident visas on the licence will be revoked. However, there is no need to present a certification from MOHRE proving that there are no employees on the licence. The information displayed on the shared system with the Department is adequate. |
| – | A copy of the assembly meeting minutes, as well as the dissolution certificate.In the event that the business activity necessitates it, third-party approval for the cancellation must be sought. |
| – | Payment of AED 3020, as final fees. |
Mubarak Al Ketbi Role in Company liquidation services in the Mainland:
The company liquidation process can be time-consuming and expensive because corporations must coordinate with a variety of external parties and authorities to ensure that everything is completed on time. 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. Contact us today, and we promise your satisfaction!
