- Posted by: admin
- Category: Company
What is liquidation of company
Liquidation or winding up of a company is an activity whereby the operation of a company and its existence will come to an end.
The liquidation or winding up of a company is commonly known as closing of a company or cancellation of a company in the UAE.
What are the Steps & procedures for cancelling License of Entities in UAE
Notice of Companys Dissolution & Appointment of a Liquidator: As a first step the company has to pass a resolution for dissolution (closing) of the company in the shareholders meeting.
This resolution has to be attested by Notary Public in the case of Limited Liability companies registered in the UAE. If the shares holders are not available in the UAE, then the resolution has to be notarized and attested from the UAE embassy of that country and has to be attested and legalized from the Ministry of Foreign Affairs and Ministry of Justice in UAE. In the case of companies registered in most of the Free Zones attestation from Notary Public is not required.
In this statement of resolution, the appointment of liquidator should also be included with the name of the liquidator along with their address.
Further, in the case of sole establishments this step is not applicable.
What are the documents required initially for Liquation of Company in the UAE
- License Copy
- Memorandum of Association Copy with all the changes
- Power of Attorney if any
- Shareholders Resolution
- Shareholders passport Copy
- Emirates ID Copy
- Deregistration Application Form
- Notice Period for Liquidation of company.
Once the above documents are submitted and the initial payment is also done to the concerned Authority (Department of Economic Development), a liquidation certificate (primary) will be issued. It is documentary evidence from the Authority for the company to proceed with winding up of a company.
Once the liquidation certificate (primary) is obtained the company can proceed for advertisement in the newspaper. In the case of Limited Liability Companies and some of the Free zone companies such as Dubai Creative Cluster Authority, etc requires forty five (45) days notice of liquidation advertisement in the public newspaper. In the case of LLC companies four advertisements are to be published in Arabic language.
What are the actions to be taken during Notice Period
- Clearance from Immigration Department
- Clearance from Labor Department
- Clearance letter from Electricity and Water Departments
- Clearance letter from Telecom Authority (DU or Etisalat etc)
- Clearance letter from Landlord
- Bank account closure letter
Final Step for Liquidation of company:
Once the notice period is over the following documents are to be submitted along with the above-mentioned documents:
- Liquidation report
- Copy of Newspaper advertisement
Once the above documents are submitted, the authority will review and upon approval of the same final payment to the authority has to be done. Thereafter, the final certificate called License Cancellation Certificate will be issued by the concerned Authority.