Company Liquidation Services, Wind Up & Deregistration
Company liquidation, or winding up, or deregistration, involves the process of bringing your company to an end in terms of legal and formal procedures. Once a company is liquidated, the license is revoked, and the eligibility of the license is disabled for operating the business or providing services or products in the region. Liquidating a company in the United Arab Emirates (UAE) involves a complicated and time-consuming process and requires assistance from professionals in the liquidation field to carry out the process.
The legal expert at Gatestone Group, with a deep understanding of UAE laws and regulations, ensures a seamless and compliant liquidation process while navigating the legal complexities. Whether it is voluntary or compulsory, our tailored advisory services encompass every aspect, from asset distribution to regulatory compliance, facilitating a smooth transition and empowering businesses to conclude their operations responsibly and in accordance with the law.
What are the types of Liquidation in Dubai And The UAE?
There are two types of liquidation recognised by the UAE law:
1. Voluntary Liquidation
Voluntary liquidation happens when the shareholders of the company decide to liquidate the company of their own choice for several different reasons, such as paying its credits, the company being no longer profitable, or there being no intention to continue its operation.
2. Compulsory Liquidation
Compulsory liquidation happens when a company is mandated by the court to wind up the business due to a lack of funds to continue operation or its inability to pay the required debts within the set timeframe. In such a case, a shareholder or creditor may petition the court to force the company into liquidation.
What is the company liquidation process in the UAE?
The in-house lawyers and liquidators at Gatestone Group are ready to assist you with the liquidation process in the UAE, including:
Step 1: Preparation for liquidation:
Before starting the liquidation process, it is required to gather some required documentation and complete some procedures. This includes passing a board resolution, a financial audit, and settling debts.
Step 2: Appoint a liquidator:
Consult with a professional like Gatestone Group and assign them as the liquidator to oversee the liquidation process and the legal matters while keeping UAE laws in check.
Step 3: Submit shareholder resolution:
It is required to submit the shareholder resolution and specific required documents to the relevant licensing authority. The required documents include the company’s trade license, Memorandum of Association (MoA), Power of Attorney (PoA), copies of passports and Emirates IDs of the owners and shareholders, etc.
Step 4: Public announcement
The company is required to issue a public notice in a newspaper stating their intention of liquidating the company. The public announcement must be issued in English and Arabic.
Step 5: Cancellation Period
During the cancellation period, a few actions are to be considered to complete the process of liquidation, including:
- Cancellation of employee and partner visas and work permits
- Tax de-registration and tax clearance
- Obtain a clearance letter from labour and immigration department, the water and electricity department, the telecommunications company, the Road & Transport Authority (RTA) for any registered vehicles, the Federal Customs Authority (FCA), etc.
- Letter of corporate bank account closure
- Liquidation report
The liquidator is required to prepare a liquidation report with the required documents, submit it to the relevant authority, and pay the cancellation fees. Once approved, the authority will issue the license cancellation certificate.
How can Gatestone Group help you with company liquidation services in Dubai and the UAE?
Gatestone Group provides comprehensive legal advisory services for liquidating a company and assisting in the complex process of winding up a business in the UAE.
We follow a simplified process and provide the following services that make the liquidation of your UAE company seamless and efficient, including but not limited to:
1- Legal guidance and strategy
Providing step-by-step guidance throughout the liquidation process, ensuring that all legal aspects are addressed efficiently.
2. Asset evaluation and distribution
Supporting the fair distribution of assets to the company shareholders and credits, settling debts, and evaluating company assets.
3. Regulatory compliance expertise
Ensuring compliance with the legislation of the UAE, aiming to reduce the risk of legal implications or fines.
4. Dispute resolution
If conflicts arise during liquidation, our in-house legal advisors will strategise to resolve these issues in a timely and efficient manner.
Let Gatestone Group help you with company liquidation services in Dubai and the UAE.
Are you ready to navigate the complex process of company liquidation in the UAE, or do you require expert legal guidance for an ongoing liquidation? Contact our team of experienced legal advisors today. We are here to guide you through every step of the process, ensuring a successful and legally compliant liquidation.
FAQs
Legal advisory services are essential for ensuring a smooth and legally compliant company liquidation. They guide clients through the process, help with asset evaluation and distribution, ensure compliance with UAE regulations, and provide solutions for conflicts that may arise during liquidation.
Our company liquidation advisory services cater to a wide range of companies, including Limited Liability Companies (LLCs), free zone companies, and offshore entities. Whether you are a small business or a large corporation, we offer tailored solutions to meet your specific needs.
Compliance with UAE laws and regulations is crucial to avoid legal complications and liabilities during the liquidation process. Our legal advisors ensure that every step of the liquidation adheres to the legal framework in the UAE.
Asset assessment involves identifying and evaluating company assets, while debt settlement entails settling outstanding debts. Both processes are vital for ensuring a fair distribution of remaining assets to shareholders and creditors.
In many cases, the company liquidation process can be initiated remotely. However, the specific requirements may vary, and our legal team can guide you through the process based on your circumstances.