Dubai Company Liquidation & Cancellation Support

Dubai Company Liquidation & Cancellation Support

To cancel a company in Dubai, you need to go through a formal liquidation process, which involves settling debts, canceling licenses and visas, and obtaining necessary clearances from relevant authorities. The process can vary slightly depending on whether the company is on the mainland or in a free zone.
Mainland Company Liquidation:
1. Prepare a resolution:
The company's board must pass a resolution to liquidate the company and appoint a liquidator.
2. Appoint a liquidator:
A registered liquidator must be appointed and their appointment officially documented.
3. Apply for cancellation:
Apply for the initial license cancellation with the Department of Economic Development (DED) or relevant authority.
4. Settle debts and obligations:
Pay all outstanding debts, including taxes and employee benefits.
5. Cancel licenses and visas:
Cancel the company's trade license, employee visas, and work permits.
6. Publish a notice:
Publish a notice of liquidation in two local newspapers to allow creditors to make claims.
7. Obtain clearances:
Obtain clearance certificates from relevant authorities like the Ministry of Labour and the General Directorate of Residency and Foreigners Affairs (GDRFA).
8. Prepare an audit report:
If the company has been operating for less than two years, an audit report may be required.
9. Close bank accounts:
Close all company bank accounts and settle any outstanding financial matters.
10. Finalize the process:
Once all clearances are obtained and the notice period expires, the liquidator will submit a final report, and the DED will issue a liquidation certificate.
Free Zone Company Liquidation:
Prepare a board resolution: Similar to mainland companies, a board resolution is needed to initiate the liquidation process.
Appoint a liquidator: A liquidator must be appointed and their appointment officially documented.
Submit required documents: Provide documents like the board resolution, audit report, and lease termination letter.
Settle debts and obligations: Pay all outstanding debts and fulfill all contractual obligations.
Cancel licenses and visas: Cancel the company's business license, employee visas, and work permits.
Obtain clearances: Obtain necessary clearances from the free zone authority and other relevant bodies.
Finalize the process: The liquidator will submit a final report, and the free zone authority will issue the final liquidation certificate.
Key Differences for Free Zones:
Documentation:
Free zones often require specific documents like a certificate of formation, share register, and memorandum of association.
Advertiserity:
The liquidation process is managed by the specific free zone authority, not the DED.
Important Considerations:
Legal Implications:
It's recommended to consult with legal professionals and liquidation experts to ensure a smooth and compliant process.
Timeframe:
The entire process can take several weeks, especially with the notice period for creditors.
Costs:
There are various fees associated with the process, including license cancellation fees, dissolution fees, and potential audit fees.