Liquidation of UAE Companies

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.

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.

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.