Company Liquidation in Dubai, UAE

Kiltons Business Setup Services offers Company liquidation services for multiple business establishments like LLCs, offshore establishments and Free Zone companies in Dubai, UAE. Company liquidation in Dubai and UAE is the process by which a company winds up its operation and activities when it faces an acute financial crisis and is unable to manage its existing debts.

The process involves complicated documentation and negotiations with parties involved and other government agencies. De-registration is a very important aspect connected with the Company liquidation process. The term company liquidation is known by other names like cancellation of the company or dissolution of the company etc. Company liquidation in Dubai or UAE can be a time-consuming and tedious task if not managed in the most professional and dedicated manner.

Providing best company liquidation services in UAE, Kiltons undertakes the liquidation process of your business. Prior to the company liquidation processes such as trade license cancellation and business wind up, you are required to meet certain important tasks such as closing of bank accounts, settle down utility bills, get certificates from concerned Government authorities, prepare final audit reports, visa cancellation, etc. You can entrust Kiltons Business Setup Services LLC for company liquidation in Dubai to simplify the liquidation procedures and avoid extra expenses. We assist entrepreneurs in the liquidation of both mainland and freezone companies in UAE.

Get in touch with Kiltons for your company liquidation in UAE!

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  • Voluntary and Compulsory Liquidation in UAE
    “Liquidator” is the name assigned to the person or the individual who is in charge of the process of company liquidation. The process is classified into 2 types and they are Voluntary and compulsory liquidation.

    The company shareholders agree to initiate company liquidation when the creditors are left unpaid. This type of company liquidation is called voluntary liquidation. Here creditors are given precedence.

    In compulsory liquidation, the company liquidation process is initiated by the court and not by the shareholders of the company. The company’s assets are dispersed among the creditors and shareholders on precedence basis.

  • Step by step instructions for Mainland LLC liquidation

    It would take around 2 to 3 months to accomplish the Company liquidation formalities of a Limited Liability Company based in the UAE. 2 to 3 months’ time is the minimum duration provided the company is free of dues and devoid of any claims. An objection from someone or an external entity on any issue can delay the formalities.

    The company is obliged to conduct a meeting of the shareholders. In the meeting the shareholders should take the decision to close the company by approving a resolution.Attest the resolution from a notary. The attestation is not mandatory for most of the companies that are established in the free zone jurisdictions.

    Pay off the employee salaries and cancel all immigration visas. The company is required to obtain clearances from the concerned authorities.

    Pay off the remaining debts and settle all the dues.

    Next comes the role of a liquidator. A liquidator must be assigned to carry out the entire company liquidation process.

    Get ready with the entire documents and submit them to acquire the approval for initial liquidation.

    A company liquidation advertisement is published in the local daily. The advertisement is run for 45 days. Wait for any response in the form of objections.

    If the liquidator finds no objections, he shall issue the Liquidators report.

    Discontinuation of partner visas followed by document submission.

    Pay the fee involved for the cancellation of trade license at the Department of Economic Development (DED).

    Discontinue all corporate bank accounts owned by the company.

  • Documents Needed for Liquidation of Company in Dubai, UAE

    Both mainland and free zone company dissolution need the same set of documents. The documentation at times varies with the type of free zone jurisdictions. Here are the important documents required for the purpose of company liquidation.

    License (copy)

    Power of Attorney

    Shareholder passport (copies)

    Re-registration form

    Memorandum of Association (copy)

    Emirates ID (copy)

  • Company Liquidation of Freezone Companies

    The company liquidation formalities are almost the same for all free zone companies. But there are certain differences for some free zone jurisdictions.

    Board resolution for company liquidation.

    Assigning a liquidator.

    Liquidation letter

    Settlement of dues and fines with free zone

    Free zone authority clearance

    NOC from Business Unite

    CLD Government Section Clearance

    License (original)

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Company Liquidation Services in Dubai, UAE

The UAE is a magical land for investors. Many have achieved phenomenal success by establishing business ventures in the country. At the same time, it can also happen that the company may have to be closed down owing to various reasons. Due to either unsatisfactory performance and debts or fulfilling the requirement, which the company was intended for. Company liquidation in Dubai can be completed smoothly by pursuing the laid down procedure.

Hiring company liquidation services in Dubai is important for complying with the promulgated regulations. Liquidation is also referred to as winding-up, dissolution and closing. The liquidation process would include selling off the assets, products and raw materials. Any debt pending in Dubai would have to be settled before transferring the balance amount to the shareholders.

The authorities would cancel the business license on liquidation of the firm. Further, the registration of the firm with the Dubai Chamber of Commerce would be removed.  subsequent to liquidation. A painful process many a time, you would require a reliable company liquidation services in Dubai by your side. Proficient professionals would handle the entire process in a meticulous manner.

Company Liquidation services in Dubai, UAE

We understand how difficult it is for an entrepreneur to watch the dream melting away. Our wholehearted support would ensure that the owner is at ease while company liquidation in Dubai is happening.

The team would assist also in selling the assets remaining after company liquidation. Amount gained from the sale can be shared among the shareholders. Having a close association with the authorities, we have been offering optimal assistance in company liquidation.

Types of Liquidations

Most of the time company liquidation may be the only option left with the owner. In some cases, the authorities may direct the closing down of a debt-ridden entity. Two types of liquidations are there:

Voluntary Liquidation

The company owner, the board of directors or a joint resolution by the shareholders may decide upon winding down the business operations. This type of company liquidation in Dubai is called Voluntary Liquidation. The common reasons for voluntary liquidation are:

. Death of the owner or the primary shareholder of the firm and there are no successors

. Company facing heavy loss, making the business operations difficult

. No probability of success

. On fulfilment of the target

. Merger with another entity

Compulsory Liquidation

Compulsory liquidation in Dubai is done by the authorities. This means the authority will close down the company by force as and when necessary. The owner or shareholders cannot object to compulsory liquidation, as it is undertaken after a thorough study by the authority. The conditions in which compulsory liquidation occurs are:

. It is proven that the company violated the law of the land

. The company has become insolvent and the lenders have approached the authority requesting action

Compulsory liquidation is carried out with the help of an authorized company liquidation services in Dubai. The money acquired by selling the assets would be paid to the lenders.

Company Liquidation Process

The liquidation process commences with selecting an approved company for liquidation services in Dubai. The liquidator, the agency handling the closing down the process, would manage the process on behalf of the owner and shareholders. Selection and appointment of the liquidator are at the discretion of the company/ board members/ shareholders in the case of voluntary liquidation. In the case of compulsory liquidation, the authority or the court will appoint the liquidator.

The Company Board of Directors Meeting

Board directors' meeting may not be required if a single person owns the company. Otherwise, the majority of the board of directors has to decide upon the winding of the entity. All the board proceedings and final resolution has to be documented. An authorized public notary must attest to the document to make it authentic.

Application for Liquidation of Company in Dubai

The Department of Economic Development (DED) is the authority for all the business-related approvals in Dubai. A liquidation form signed by the authorised person has to be submitted to the DED for approval.

Publication of the Dissolution Decision

It is the responsibility of the entity to publicise the decision to close down. On receipt of approval for dissolution, the company must publish the decision to liquidate in a local Arabic newspaper, at least 45 days in advance from the date of liquidation. This will allow enough time for the moneylenders to stake their claims.

Liquidator Acceptance

The selected company liquidation services in Dubai must accept the offer from the company to undertake the liquidation process forward. All the approvals and orders have to be documented. The board should inform the liquidator in advance about the decision to appoint them. To avoid last-minute dilemmas.

Notice Period

The DED allows a 45-day notice period for company liquidation in Dubai.

Cancellation of Visa Associated with the Company to be liquidated

All the visas associated with the company have to be cancelled within the 45-day period provided by the DED. This includes visas of employees, shareholders, and family members. The Ministry of Labour as well as the Ministry of Immigration issue NOC subsequent to the cancellation of the visa.

Settlement of Dues to Departments

All the dues of the company to departments including the telecommunication department have to be paid. The department would issue a NOC on clearing the dues. This NOC is another mandatory requirement for company liquidation in Dubai.

Report Submitted by the Liquidator

The company liquidation services in Dubai or the liquidator submits an audit report which would affirm that there are no pending dues. All the debts, payments and loans must be paid in the given timeframe to avoid delays.

Certification of Liquidation of the Company in Dubai

After complying with the abovementioned formalities, like clearing of dues, cancellation of visas etc, the DED can be approached for issuance of a liquidation certificate. The DED would examine the conditions and confirm that everything has been complied, with before issuing the certificate.

After this, the company ceases to exist in any of the documents in Dubai. The owner is free to return to his or her country. Or to begin another business.

Documents required for Company Liquidation in Dubai

The company liquidation in Dubai necessitates a number of documents. The company liquidation services in Dubai can help you in obtaining most of the documents related to winding down.

·         Copy of business license of the company

·         Copy of MOA

·         Copies of passports of the owner/ shareholders

·         Copy of Emirates ID

·         Power of Attorney (POA) if required

·         Shareholders’ resolution

·         Application form (s)

Why Kiltons Business Setup services for Company Liquidation in Dubai?

Kiltons has been the leading business service provider in the UAE since 1999. Experienced in every aspect of business setting up, liquidation, renting of office space etc, we have been the right support for companies in the country.

With over two decades of experience, we understand your needs. We offer responsible company liquidation services in Dubai. To discuss your requirement, contact us now.