Running a company is quite a tough task but the actual problem arises when you are required to dissolve the company. The reason behind the hassle is because the rules of company liquidation in Dubai are quite strict. But, if you are looking for a way to get your company dissolved, then you can hire a professional as they can offer a great aid.
Also, in this article we are going to talk about the procedure of company liquidation in Dubai both for an LLP and a Sole Establishment. But first, let us understand what a dissolution is in a brief.
What is Company liquidation in Dubai?
In common terms, Liquidation or dissolution of a company is a term given to the process where the establishment sells all of its assets and pay off all of its liabilities. For a UAE registered company, the following basic factors remain the same and when a company ends its operation, they are required to clear out the amount of all the creditors. This process is also known as Winding-up.
How should you proceed with company liquidation in Dubai?
As we mentioned earlier, there are two types of dissolution, or we can say that both Limited Liability Company license and Sole Establishment companies have their own set of rules and regulations which makes the liquidation approach for both of them rather different from each other. So, without further ado, let’s start with the factor of liquidating a LLP or Limited Liability Company.
- Liquidation of Limited Liability Company in Dubai
Step 1: Firstly, all the existing employees should be paid off entirely
Step 2: Appointing a liquidator and attesting the Resolution of BOD regarding dissolution from Public Notary.
Step 3: Getting attested Liquidator’s letter, License copy, Authorized signature certificate and Auditor’s Registration certificate from Public Notary.
Step 4: Issue of Liquidation certificate by paying the fee at Dept. of Economic development.
Step 5: Public notice in two local Arabic Newspapers regarding the liquidation of the company and waiting for 45 days so that any person can raise claims in the time period.
Step 6: Presenting a copy of Newspaper ad and Final Audit Report to Dept. of Economic development
Step 7: Confirmation of no claims from all the partners and liquidator
Step 8: Visa cancellation of Partners and getting letter of clearance from Ministry of Labour and Immigration, Etisalat, DEWA
Step 9: Submitting the fees of liquidation with a copy of BOD’s resolution and Liquidation certificate to Dept. of Economic Development
- Liquidation of Sole Establishment Company
Step 1: Firstly, all the existing employees should be paid off entirely (If any)
Step 2: Submission of the Labour Establishment card cancellation form with authorized signature and seal at Labour Office Branch.
Step 3: Receiving NOC with stamp on the application form from the Labour office.
Step 4: Filling up the license cancellation form with owner’s signature and submitting it in Dept. of Economic Development with cancellation fees.
Step 5: Receiving Clearance from Dept. of Protective System regarding no violations records and Receiving Cancellation Certificate from DED by paying required Fee.
Step 6: Lastly, presenting the cancellation certificate, request letter and original immigration establishment card to Immigration Head Office, Jaffiya.
So, following are the entire procedure of liquidating all kinds of company in Dubai. Also, as all this can be quite overwhelming, hiring a professional company to work beside you liquidator.
