Closing of a Company in Dubai
As closing the business in Dubai requires a lot of processes, documentation, attestations, and approvals from Government Authorities. It is best to initiate the closing of business in Dubai by taking the assistance of a well experienced Business Consultants to save time and effort.
Our expert team at Aurion Business Consultants will hand hold you throughout the company liquidation process to ensure you have a hassle-free company liquidation in Dubai.
For companies with share, the process is longer because it requires liquidating the shares, collecting the debts and paying the creditors’ before finalizing with DED.
The government authorities must be well informed that you are no longer in the business to avoid any accumulated fines and penalties on your existing license. It is mandatory to renew trade license every year and defaulting that will yield fines.
For shareholding company, it is important to settle the liabilities with creditors, partners, and other stakeholders. It also helps in maintaining your goodwill, business reputation, and credibility if you want to start fresh by opening a new business.
There are three types of closures for Freezones companies
In the DMCC Freezone, the business closing applications are accepting through the member portal.
The cancellation of the business license terminates the authorities, duties, and responsibilities of the Directors of the company.
The Free Zone authority will review and process the application after 15 days from the date of publication of notification in the local Arabic and English newspaper. DMCC authorities will then file the final termination of the company and issue termination letters.
In JAFZA the companies must notify the authorities 3 months’ prior for the office and warehouse facility and 6 months’ prior for plot facility.
In all cases, the employee has to cancel the visas and work permit. The employees have to be given a two-month paid notice period before terminating their contracts.
The company must ensure, they clear all the arrears, obtain the required clearances, notify the concerned government authorities, obtain the final License Cancellation Certificate and have a smooth closure to avoid any future legal violations.
For any assistance regarding company liquidation in UAE, talk to our consultants right away!
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