Steps for Company Liquidation in the UAE

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Steps for Company Liquidationin the UAE

• HHS Lawyers and Legal Consultants

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Company liquidation

• Liquidation of a company is an activity in which
  all the companys operations are brought to an
  end because the company is shut down. There can
  be a lot of reasons behind shutting down of the
  company. Most of the times, when the cash flow of
  the company is not smooth and the company finds
  it difficult to cope up with all the stresses, it
  goes for liquidation.
• Company liquidation can also be referred to as
  the closing or cancellation of the company. It
  happens when the company is done providing its
  products services to its clients.

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• The procedure of license cancellation for the UAE
  based entities
• A particular procedure is to be followed for the
  cancellation of the companys license. When the
  company takes the decision of ending the
  provision of its products and services to the
  market or when the order of liquidation is
  imposed on it from external means, the company
  has to cancel its license. For license
  cancellation, the procedure is given below
• Companys dissolution notices and appointing a
  liquidator
• A meeting is conducted between all the
  shareholders of the company regarding the
  dissolution of the company.

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Resolution attestation

• For the attestation of, the resolution made by
  the company regarding its dissolution needs to be
  authorized first by the notary public UAE. This
  is necessary because it authenticates the
  document of resolution and ensures that all the
  shareholders agree on the decision of
  liquidation.
• In some cases, some of the shareholders of the
  company may happen to be out of the UAE. In such
  a case, the documents of the resolution may get
  attested as well as authorized from the embassy
  of UAE in the respective country. The documents
  can then be legalized from the ministry of
  foreign affairs (MOFA) and the ministry of
  justice (MoJ).
• Note that if the company is registered in any of
  the free zones in UAE, attestation from a notary
  public in UAE will not be needed.
• Appointing a court expert liquidator needs to be
  mentioned in the resolution as well with their
  name and the address.
• Note that for sole establishments, this step is
  not required.

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Documents needed for company liquidation in Dubai

• Here are the documents that are needed by the
  company for the process of liquidation.
• Copy of the license of the company
• Copy of memorandum of association (if there were
  any changes made in it, they should be there too)
• Power of attorney (if any)
• Resolution of the shareholders of the company
• Passport copies of all the shareholders
• Copy of the Emirates ID
• Application form for the deregistration of the
  company
• The notice period for the companys liquidation.

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• Pay the initial payments and then submit the
  required documents to the Department of Economic
  Development. After the submission of the
  documents, a liquidation certificate will be
  issued to the company. It will act as evidence of
  the document submission. This documentary
  evidence will then help in the process of
  liquidation of the company.
• After obtaining the liquidation certificate from
  the authorities, the company must go for
  advertising about its liquidation in the
  newspaper. For limited liability companies and
  some free zone companies, the requirement of
  putting the notice advertisement of liquidation
  is 45 days. Limited liability companies need to
  publish 4 advertisements and they should be in
  the Arabic language for sure.

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What should the company do during Notice Period?

• There are certain tasks that the company can
  complete during the notice period. These may
  include
• Clearance from the Department of Immigration
• Clearance from the Department of Labour
• Clearance letter from the Departments of
  Electricity and Water
• Clearance letter from the Telecom Authority
• Clearance letter from Landlord
• Letter of bank account closure

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Last step of liquidation

• Moving on towards the last step of the
  liquidation process, the company must submit all
  the following documents to the required
  authorities
• Copy of Liquidation report
• advertisement given in the Newspaper
• After the submission of the documents mentioned
  above, authorities will pay a review of the final
  payment and then approve it. After carrying out
  all the required procedures mentioned above, the
  company will be issued the final license
  cancellation certificate.
• The companies can hire the best liquidators and
  that is for their own good. During the
  liquidation process, companies are usually in a
  very unstable state and are not ready to handle
  another burden of the liquidation process along
  with the stress of liquidation of the company.
• HHS lawyers have the best liquidators in
  Dubai which may help you proceed with your
  license cancellation and all other liquidation
  processes very efficiently and appropriately. So,
  get in touch with our firm and make things easier
  for you to handle.

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