Company liquidation in UAE Free zone

Company Liquidation in UAE Free Zones

Company Liquidation in UAE Free Zone is a structured process that the entrepreneur must follow in the event of closing down their business. For the smooth company liquidation and winding up of the business, assign all the process to a consultant or an expert in the field.

Company Liquidation is the process where the business completely closes down all of its operations. Then, liquidates all the assets and properties of the company, and distributes any outstanding payments to its creditors and shareholders.

It is also known as de-registration of the company. Aurion will help to complete the company liquidation process in all of the free zones in the UAE.

Requirements for the termination of company may vary from free zone to free zone but most of them will remain the same in each free zone.

Company Liquidation Procedures in UAE

Depending on the business jurisdiction -the Free Zone & Mainland, the company liquidation procedures in UAE vary. In general, following are the company liquidation steps.

Company must prepare the board resolution stating the license cancellation and reason for closing down.

Obtain all the clearances from the relevant authorities (Such as Free Zones, telephone, Emirates Post, and Banks).

Cancel the employee and clear all the dues for processing the trade license cancellation request.

Similarly, clear all outstanding dues to suppliers and prepare the audit report.

Publish advertisement or notice in two local daily (One in Arabic) newspapers for 45 days.

Cancellation of the Memorandum of Associate of the company with the business jurisdiction.

After all, documents are submitted and reviewed, the authority will issue the license cancellation certificate confirming the liquidation of the company and cancellation of the trade license

Free Zone Company Liquidation in Dubai – Requirements

Depending on the business jurisdiction, the Free Zone company liquidation process in Dubai consists following steps that the entrepreneur must follow to ensure hassle-free company liquidation in the UAE.

Clear all fees and charges concerning the Free zone authority

Immigration clearance from Free Zone Authority

The company must prepare a resolution to liquidate and appoint a licensed liquidator to carry out the procedure

The liquidator must approve the order of action for the company’s liquidation and send confirmation that the company has no assets or obligations/liabilities by preparing a final Audit Report/Liquidation Letter

The company must not have any liabilities

Cancel all active visas

Close all corporate Bank Accounts

Any assets at time of liquidation must be transferred to the shareholders or a third party

Required Clearances

Following clearance certificates are necessary for the liquidation of a UAE company:-

1

Clearance certificate from relevant free zone authority

2

Clearance certificate from business unit

3

Clearance certificate from all utilities

4

Clearance certificate from any related authorities as per the regulated activity

5

Clearance for customs

Company Liquidation in Dubai

Company liquidation in Dubai is a straightforward process of winding up a company due to any financial distress, unprecedented events, not enough funds to sustain daily business operations, etc. Entrepreneurs can get assistance for company liquidation in Dubai from expert Business Consultants. Hence, It will help in reducing the complexity of the process as well as the investors would feel more comfortable and secured to carry out the company liquidation process in Dubai.

To know more, read: Company Closing in Dubai

Aurion being the Registered Company Liquidators in the UAE will guide the entrepreneurs in closing Free Zone Company or liquidating Mainland Company. Depending on the business jurisdiction, our team will assist the entrepreneur with the right set of company liquidation procedures and ensure the company closing is 100% compliant with the regulations of UAE Company Law. For entrepreneurs to avoid any penalty or entry ban in the future, the company closing must be carried out right away by complying with the legal regulations of UAE Free Zone jurisdictions.

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COMPANY LIQUIDATION IN UAE FREE ZONE