Liquidation De-Registration in Dubai

Liquidation/De-Registration

Liquidation Process: When winding up your business in UAE, it is always advisable to liquidate your business/license to notify the relevant parties of your conclusion of business officially. It also ensures that you discharge your duties towards your debtors, creditors, and partners and protect your interests and shares.

There is also an option to freeze your trade license, where companies may keep their trade licenses inactive for three years by paying a certain freezing fee. However, they cannot extend it beyond that specific period.

Liquidation Process: You can perform a voluntary liquidation if all shareholders agree to close the business, or you can do a mandatory liquidation if the court orders it.

• Appoint a liquidator if your company is any of the below:
  1. General Partnership
  2. Limited Liability Company
  3. Single Limited Partnership
  4. Public Joint Stock Company
  5. Private Joint Stock Company
• The process involves two stages:

  Stage 1:

  • Prepare notarised minutes of the general assembly confirming the company liquidation and the appointment of a liquidator.
  • Arrange an official letter by a registered liquidator accepting the duty.
  • Apply for cancellation by filling out the required form through DED or other approved channels.
  • DED will issue a liquidation certificate.
  • Publish the notice of liquidation in two local newspapers
  • The notice gives the debtors a grace period of 45 days from the issue date to submit their claims.

  Stage 2:

  • Submit a declaration letter from the liquidator and the partners to DED indicating no objection from any other parties during the grace period.
  • Collect required approvals of other government bodies to cancel a license.
  • Cancel the firm card at the Ministry of Human Resources and Emiratisation.
  • Cancel the foreign partners' visas sponsored by the company at the respective General Directorate of Residency & Foreigners Affairs
  • Submit all the above documents to get the approval for final cancellation.
  • DED will determine the fees.
  • You can receive the deregistration certificate (cancellation) after paying the requested fees.

Liquidation Report: Liquidation Report: Also known as Liquidator’s Report, will contain all necessary analyses of a company’s assets, liabilities, and financial and other aspects of the company at the time of liquidation, prepared by the liquidator appointed. In addition, it will contain the information related to distribution between parties as per the company’s obligations and other relevant data related to events leading to the closure/winding up of the business.

It will include the findings of the liquidation officer as a result of investigations conducted in the following matters:

• Any possible offenses committed by the company director or any potential recoverable rescindable dealings.
• Related to customer monies held by a business
• Any other creditors and their likely distribution
• Other financial aspects of the company might need the attention of the users.