Company liquidation services in Dubai

Company liquidation services in Dubai

When liquidating or selling a company, it is essential that the proper steps are taken to appropritely close or handover the business. With PRO Partner Group's company liquidation services in Dubai, the appointing of a liquidator, a key step in the process, can be done to determine the assets and liabilities of the company in order to settle the business.

About company liquidation services in Dubai

A key step in the process of winding up a limited liability company in the UAE is the appointment of a liquidator. Winding up or ‘liquidation’ of an LLC company may be compulsory (court ordered) or voluntary (in accordance with the constitutional document of the company and the Commercial Companies Law 2020).

In both instances, the appointment of a liquidator is mandatory to determine the assets and liabilities of the company and settle liabilities in accordance with the process determined by the court or by the Commercial Companies Law 2020.

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.

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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.


Dubai Company Liquidation - FAQs
What specific approvals are needed for cancelling a private shareholding company?

You should obtain approval from the Ministry of Economy to cancel a private shareholding company in Dubai.

What are the procedures and documents required to cancel a sole proprietorship licence?

You require a no objection letter from Ministry of Human Resources and Emiratisation, in addition to a residence cancellation proof for non-Gulf nationals.

Can the dissolution of a company be cancelled before the issuance of the payment voucher?

Yes, upon approval of the Legal Affairs Department in the DED.

How can an individual liquidate a company in Dubai?

To dissolve a company in the UAE, registered and approved liquidators must be hired.

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