including the notice period,
it may take 50-60 days to
liquidate a company in
the UAE (depending on
the type of company)
A company must cancel all
visas and get clearance letter
from Immigration Departments
to complete the liquidation
It is mandatory to publish
liquidation notice in 2
any Arabic newspapers
No matter what type of business you own in UAE, it is required to cancel the business license and all related permits associated with it when you have made the decision to liquidate the business.
When a company is being liquidated in the UAE, its assets and properties are distributed to the creditors and shareholders of the company. Below is a basic checklist for liquidating a company in the UAE:
- Settling down all utility bills
- Paying off Telecommunication Bills
- Closure of Bank Accounts
- Preparing the Final Audit Report (required for LLC’s only)
- Cancellation of all the visas under the business license
Why is company liquidation required in the UAE?
There are two principal reasons why the liquidation of a company may be necessary in the UAE:
- The original purpose for setting up of the company is fulfilled and the entity is no longer required;
- The company is considered to be insolvent
Types of company liquidation:
- Voluntary Liquidations
Shareholders of a company may choose to liquidate a solvent company or the directors of an insolvent company may choose to cease further trading and liquidate its assets in order to pay its creditors.
- Compulsory Liquidations
If a company’s debts are not paid on time, creditors may request the courts to liquidate the company in order for them to collect their dues. The courts may decide to force a company to liquidate and sell its assets in order to pay outstanding debt.
Closing down a business in UAE requires a lot of steps, processes and documentation, attestations and approvals from Government Authorities. To save time and effort, requesting the assistance of a well experienced business consultant is best when you decide the close a business in Dubai.
Our team at BIZZMOSIS has the expertise and experience and will accompany you safely and easily throughout the company liquidation process to ensure you have a hassle-free company closure in Dubai.