Company Liquidation in Dubai
Mubarak Al Katbi helps companies with the liquidation process and offers many benefits. We provide services for creditors’ voluntary liquidation (CVL), compulsory liquidation, and members’ voluntary liquidation (MVL). One of the biggest benefits of our liquidation services is that your debts will be cleared, except in some special cases.
The liquidation process reduces the debt you’ve built up. It also helps stop any further payments. When you liquidate your company, all lease, purchase, or hire agreements are canceled. By going through the liquidation process with Mubarak Al Katbi, you can stop any legal actions against your company.
If you are personally responsible for the company’s debts, the situation will be different. Otherwise, creditors will not be able to take legal action. Our liquidation process shows that your company closed voluntarily and not because of creditors’ actions in court.
Company Liquidation is the process of officially closing a business. A company can be liquidated either voluntarily or by court order. This process makes sure business owners cannot leave the country without paying their debts. Whether your business is in a Free Zone, Mainland, or Offshore, company liquidation in Dubai is the best way to end your operations.
Liquidation stops a company’s operations and divides its assets among creditors and shareholders. Mubarak Al Katbi is a trusted auditing and accounting firm that specializes in company liquidation services, making the process easier for business owners. Our team ensures your business’s closure is quick and efficient.
Why Liquidate Your Company in Dubai?
In the UAE, a company might need to liquidate for two main reasons:
- Achievement of the Company’s Purpose: When a company’s goals are met, and it’s no longer needed, liquidation is necessary.
- Insolvency: Liquidation happens when a company can’t pay its debts.
It’s important to properly liquidate a business instead of just letting its trade license expire. Failing to do so can result in fines and penalties. Also, UAE government officials may stop company owners and shareholders from starting new businesses or engaging in other activities.
The liquidation process can happen in two ways:
- Voluntary Liquidation: A company agrees to dissolve itself, usually due to low profits or mergers. Shareholders and creditors appoint a liquidator to pay debts and sell assets.
- Members’ Voluntary Liquidation (MVL): This happens when a company is financially stable and has enough assets to pay its debts.
- Creditors’ Voluntary Liquidation (CVL): This happens when a company can’t pay its debts, and the director decides to liquidate it.
- Mandatory Liquidation: This happens when a company’s debts are not paid, and creditors go to court to deregister the company. The court forces the company owner to pay the debts.
A liquidator plays an important role in this process. They make sure the liquidation follows the law. Mubarak Al Katbi is a licensed firm that manages liquidation.
Process of Company Liquidation in Dubai
The company liquidation process in Dubai includes these steps:
- Resolution to Dissolve: Shareholders create a resolution to dissolve the company. For LLCs, the Notary Public handles this. If shareholders are outside Dubai, the resolution must be notarized at the UAE embassy and approved by the Ministry of Foreign Affairs and Ministry of Justice.
- Appointment of Liquidator: A liquidator is chosen to manage the process and confirm the liquidation.
- Provisional Liquidation Certificate: Get this certificate and publish a liquidation notice in English and Arabic. Submit all documents, including the shareholders’ resolution, to the licensing authority.
- Notice Period: A 45-day notice period starts. During this time, work permits are canceled, and clearance is needed from authorities like the Immigration Department, Labor Department, and utility companies.
- Final Report: After the notice period, the liquidator prepares the liquidation report. Once submitted, the relevant authority reviews it and issues a ‘License Cancellation Certificate,’ confirming the liquidation is complete.
Documents Required for Company Liquidation in Dubai
You need to have these documents ready for the liquidation process:
- Photocopy of the original trade license
- Memorandum of Association (MOA)
- Power of Attorney
- Photocopy of all Shareholders’ Passports
- Resolution of Shareholders
- Photocopy of the Owner’s Emirati ID
- Application form for deregistration
Contact Mubarak Al Katbi for the Best Company Liquidation Services in Dubai
If you want to liquidate your company, Mubarak Al Katbi is the right choice. Our team has years of experience helping companies with the liquidation process in Dubai. We take care of everything, including preparing documents, closing bank accounts, and canceling utilities, so you don’t have to worry.
We offer liquidation services for businesses in all zones—free zones, mainland, and offshore—across the UAE. Contact us today, and let us handle your liquidation process.
What is Company Liquidation?
Company liquidation is the legal process of closing a business, paying off debts, and officially ending the company. UAE law controls the process, making sure creditors are treated fairly and business owners meet their financial obligations. The liquidation process includes selling assets and deregistering the company.
There are two types of liquidation:
- Compulsory Liquidation: This happens when a company can’t pay its debts or when the court orders it.
- Voluntary Liquidation: Shareholders decide to close the company when it’s no longer profitable or needed.
Mubarak Al Katbi offers full liquidation services to help businesses follow all the rules and avoid penalties.
Why Choose Mubarak Al Katbi for Company Liquidation Services?
Mubarak Al Katbi offers these services to help with a smooth company liquidation:
- Expert Consultation & Strategic Planning: Our experienced auditors guide businesses through the liquidation process to make sure everything follows the law.
- Debt Settlement & Financial Closure: We help businesses settle debts with suppliers, close corporate bank accounts, and make sure employees are paid according to UAE labor laws.
- Tax Clearance & VAT Deregistration: We take care of the VAT deregistration process and make sure all tax debts are cleared with the Federal Tax Authority.
- Documentation & Legal Formalities: Our team prepares and submits all required documents, including board resolutions, announcements, and audit reports.
- Cost-Effective Solutions: We make the liquidation process faster and cheaper by reducing unnecessary delays.
Step-by-Step Process of Company Liquidation in Dubai
- Board Resolution & Shareholder Approval
- Appointment of a Licensed Liquidator
- Public Notice Issuance
- Settling Financial Obligations
- VAT Deregistration & Final Tax Clearance
- Submission of Final Liquidation Report
- Company Deregistration & License Cancellation
Common Challenges in Company Liquidation & How Mubarak Al Katbi Helps
- Unsettled Debts & Liabilities: We work with creditors to settle debts quickly.
- Tax Compliance Issues: Our experts ensure proper VAT deregistration and clearance from the FTA.
- Complex Legal Procedures: We handle all the documents and approvals so everything goes smoothly.
- Employee Compensation & Settlements: We make sure all employee payments are done according to UAE labor laws.
How Can Help Mubarak Al Ketbi Chartered Accountants Company liquidation in Dubai
Company liquidation in Dubai and the UAE is a detailed process that requires care, compliance, and planning. Mubarak Al Katbi makes this process easier, helping businesses close their operations the right way. Our knowledge of financial, legal, and administrative tasks makes us the best choice for liquidation services in the UAE.
If you need trusted company liquidation services, contact Mubarak Al Katbi today for a smooth business closure experience.
