How do I voluntarily close, liquidate or wind up an LLC Company in the UAE?
The Directors of a company may determine that voluntary liquidation is in the best interests of the company or larger group and can commence voluntary liquidation procedures independent of a court to wind up and close a company.
A voluntary liquidation of a UAE LLC is the orderly wind down of a Limited Liability Company - ensuring that all creditors are settled, all staff visas are cancelled against the licence and all UAE government licences are closed.
Below we detail the steps required to close down an LLC in UAE – this process covers the procedure for the liquidation of an LLC in Abu Dhabi or Dubai mainland, as well as Freezone companies.
Voluntary liquidation process in accordance with the Companies Memorandum of Association (MOA)
To close an LLC in the UAE , you must firstly ensure that either the shareholders of the company or or their Power of Attorney ,who is approved and attested to sign the Shareholder Resolution to close the company, are available in the UAE A Board Resolution or Shareholder Resolution is to be passed by all shareholders of the company in a general meeting in which the decision to liquidate the company is agreed and a liquidator is appointed (please refer to our article here on engaging a liquidator). A board resolution will need to be drafted and notarised by a UAE Notary Public.
The company will then be required to apply for cancellation of the trade licences through the Department of Economic Development (DED). Following application for cancellation at DED, the following steps must be taken:
- Clearance from the Labour & Immigration Department - All work permits and visas for all of the company’s employees and partners must be cancelled. Then the Labour and Immigration files and eChannel (Abu Dhabi) / eDNRD (Dubai) systems can also be closed for the LLC.
- Third Party clearances - All licenses must be closed and final closure letters obtained, including Telecom Authority (DU or Etisalat) Electricity and Water Departments, as well as the lease agreement with your Landlord and the Municipality clearance for your office space - Ejari (Dubai) or Tawtheeq (Abu Dhabi).
- Bank account closure - All UAE bank accounts must be closed and final closure letter obtained for each bank.
- Copy of newspaper report - You must advertise the liquidation in at least 2 Arabic newspapers / gazette. This requires a 45-day advertisement period in Abu Dhabi. The gazette liquidation process is submitted through the DED system in both Dubai and Abu Dhabi.
- Liquidator report - Audited accounts will need to be prepared during this period with the liquidator and submitted to the DED as part of the closure. Any creditors will need to be dealt with and settled during this period.
- Licence Cancellation certificate - Once all final closure documents are submitted to the DED and approved, the Closure Certificate can be obtained.
More information regarding the practical information on the steps required to deregister a branch in the UAE can be found here.
For information regarding restructuring debt and liquidation in the UAE, please refer to our article here.
How can PRO Partner Group help?
PRO Partner Group can assist you with the practical steps, procedures and PRO work required to undertake all the relevant applications to close down and voluntarily liquidate an LLC Company in Dubai, Abu Dhabi and across the UAE.
We can work closely with your legal counsel and appointed liquidator if required to coordinate the timely wind down of the business and closure of all visas and licences to ensure an orderly and cost effective process.
If you need assistance on this or any other related company set up, restructuring or local partner matters in Abu Dhabi, Dubai, the wider UAE, Oman or Qatar then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at email@example.com or complete the contact form below and we will be delighted to assist you.