What is company liquidation in Dubai?
Company liquidation in Dubai means closing company in Dubai. It is simply the process in which company closes its operation; and therefore the assets and capital of the company is distributed among the shareholders. Or another word it is the process of cancellation of the trade license in Dubai.
Why we need cancellation of trade license in Dubai
Cancellation of trade license in Dubai is very important part of company closing in Dubai. There are three situations where Cancellation of trade license in Dubai becomes a compulsory thing.
- First Companies need to close if they are not earning enough; or when they do not have enough funds; also we can say that if their business is not running properly to continue their daily operations. And they are in a situation where they can’t pay their employees or they are unable to cover their debt.
- Second company liquidation in Dubai also becomes unavoidable; when a company commits a serious offense; or also in case of fraud and Dubai authority starts investigating; and finds some violations of rule and regulations. In this case they will get a legal notice; that is for closing company in Dubai. So in this case their normal operation will disturb. So company needs it to be close.
- The third case is when a trade license is expired; then you need to renew the license. But if you do not want to renew it then you have to close that license. Otherwise you will receive a lot of fine.
And by closing a company in Dubai we mean to Cancellation of trade license in Dubai. But note that once a license is closes; the same one cannot be re-activated. For trade license cancellation, you need to submit several documents; and also get approvals from the different gov’t and federal authority; but it depend on the type of business license you are holding.
Closing resources before closing company in Dubai
- A large part of closing company in Dubai deals with final payment for employees. The owners need to cancel their employees’ visas as well as their work permits; before closing company in Dubai. The employee cancellation can be done from both labor and immigration. As per UAE labor law; the owner of the business need to give their employees a two month paid notice period. In many cases, employees can keep their residency visas until the company trade license runs out.
- The second most important thing which needs to be close is it is utilities. It is also necessary to cancel any utilities; like cancelling your account with DEWA and Etisalat or du; so that to retrieve your deposits.
- The 3rd most important thing you need to close is the bank account of the company. You will be required to close any bank account associated with the company; and get a clearance latter from the bank.
- Office or warehouse leases will also have to be close; before closing company in Dubai.
What we offer for DED license cancellation or company liquidation in Dubai
- Preparation of Company board resolutions
- Preparation of legal documents for DED license cancellation
- We assist in hiring a Liquidator
- A news adds for Company liquidation in Dubai
- DED license cancellation application as well as submission
- We also take clearance letter from Etisalat
- Clearance letter from Dubai Municipality
- Arrange clearance letter from Custom Dept.
- Arrange clearance letter from DEWA
- We also assist in Bank account closure and Bank NLC
- Audit for the financial statements for liquidation of company
- We also assist in employee visa cancellation
- Labor card cancellation as well as get the clearance certificates
- Immigration card cancellation as well as get the clearance certificate
- Liquidation report preparation as well as submission for DED license cancellation.
- Final cancellation letter
How to close LLC Company in Dubai; LLC license cancellation Dubai; LLC cancellation in Dubai
There are two main stages for llc cancellation in Dubai
- Cancellation of all the existing employees; If there is any
- Board of director resolution for dissolution and appointment of a liquidator; and it has to be attesting from Notary Public.
- A letter from the appointed liquidator along with their License Copy; Auditor registration certificate, Authorized signature certificate which is attest from a Notary Public.
- Payment of the fees at DED to issue company liquidation certificate.
- Liquidation advertisement in 2 local Arabic newspapers for one day; and then we will wait for 45 days; so that to check whether any one has any claim against the company.
- Present the original Ad and final audit report of the company to the DED.
- Confirmation of the Liquidator as well as Partners that there is no objection; or claim from the third party during the Ad period.
- Then it this stage we will cancel visa of the partners; that is if any valid visa is there on a company license. We will get clearance letter from Ministry of Labor; as well as Immigration, from DEWA also form Etisalat.
- Copy of Director Board resolution and copy of liquidation certificate..
- Pay fees at DED for DED license cancellation.