A company's liquidation, also known as winding up, is the process of ending a company's existence and distributing its assets among claimants.
The process of liquidation of a company implies that the business will cease to operate. Many factors could be why the company owners, directors and shareholders choose to shut down their businesses. However, the main reason a business person would instead decide to do a voluntary liquidation of his assets is due to trading insolvency, which is the inability of the Company to meet its obligations in terms of finances, reaches its fallowing and the outstripping of the liabilities to the assets.
When you decide to close your Company in the United Arab Emirates, you must cancel your business license and all related permits associated with it. If you own a shareholding firm, it's critical to discharge your liabilities towards creditors and partners and protect your interests and shares. The process is straightforward for enterprises and sole proprietorships because all you have to do is request cancellation through DED and get all essential clearances from:
If your Company's legal form is one of these, you'll need to appoint a liquidator:
Freezing a trade licence
What are the conditions for freezing a licence?
You need to provide:
To cancelling a private shareholding company, you should acquire permission from the Ministry of Economy.
To cancelling a public shareholding company, you need to acquire the decision of the Securities and Commodities Authority.
What are the conditions of private liquidation?
There are three sorts of closures, according to the DMCC website. They are as follows:
A method of winding-up of a DMCC Company in which the Director(s) declare(s) that the Company's affairs are capable of being finally wound-up within six (6) months from the start of the winding-up procedure.
A DMCC Company winding-up procedure in which the Directors declares that the affairs of the Company are capable of being finally wound-up within a year of the start of the winding-up process.
Insolvent voluntary winding-up
A method of winding-up of a DMCC Company in which the Company's creditors participate.
In JAFZA, you must inform the authorities three months in advance for office and warehouse facilities and six months prior for plot facility.
In all cases, you must revoke the workers' visas and work permits. According to the Dubai portal, this will necessitate collaboration with the Department of Naturalisation and Residency and the Ministry of Human Resources and Emiratisation.
According to UAE labour law, employers must provide their employees a two-month paid notice period before terminating their contracts. Employees can often keep their resident visas until the Company's trade license expires. The corporation must then remove utility and telecommunication services. Obtain a NOC from the utility provider before proceeding with the shutdown.
AMCA is a legal and registered liquidator and carries out company liquidation services for all Limited Liability Companies (LLC), free zone companies and offshore companies in UAE. We will be using our knowledge and expertise in liquidating a company and make sure to do its whole process professionally and efficiently.