Company Liquidation in Dubai | License Cancellation

Types of Liquidation

Liquidation may either be compulsory (sometimes referred to as a creditors’ liquidation) or voluntary (sometimes referred to as a shareholders’ liquidation, although some voluntary liquidations are controlled by the creditors.

1. Voluntary Liquidation

In case of voluntary liquidation, the shareholders of a company will decide to wind up the company as they have no money to pay for creditors. In this type of liquidation, priority is given to the creditors.

2. Compulsory Liquidation

Compulsory liquidation is a type of company liquidation which is put forward by court order. Here, the assets of the company are distributed to the creditors and contributors based on the priority of claims.

Company Liquidation Process

Once it has been established that the liquidation will begin, the company’s board gathers in a special meeting that will outline the development of the liquidation procedure. A liquidator is appointed at this time and any requests from the company’s creditors will be fulfilled.

First of all, the company must present the official documents that verify that the decision to liquidate the company has been taken. This document will also include the name of the appointed liquidator. The original registration certificate must also be provided, along with the liquidator’s credentials. All these documents should be notarized. After the first steps of the liquidation have been accomplished, the business must also cancel any special permits or licenses it might have obtained to perform various economic activities in Dubai. Branches in Dubai will also need to provide original documents from the parent company.

Documents Required for Free Zone Company Liquidation

• Board resolution for liquidating the corporate and appointment of a liquidator
• Immigration and labor department’s clearance from free zone authority (FZA)
• All Visas ought to be canceled and cleared by Immigration and labor department.
• Submission of Liquidation letter
• Clearance Certificate from free zone authority
• Clearance Certificate (NOC) from Business Unite
• CLD Clearance Certificate from Government section
• Original free zone company license
• All fees and charges need to be settled with the free zone

Above mentioned procedures and document requirements are common in most of the free zones of UAE, However, requirements may differ due to continuous change in it may vary from the free zone.

Documents Required for LLC Company Liquidation

• Notarized Board Resolution to liquidate/ wind up of LLC Company and appointment of liquidators.
• A letter from the appointed liquidator who accepts his appointment as a company liquidator.
• Registration & Licensing Application (Form No. BR/1) from the Economic department of the Emirates.
• Company’s Original License and legal documents.
• Release letter from the property owner.
• NOC letters from the ministry of labor & immigration and RTA.
• No liability and Bank account closure certificate
• Resolutions by shareholders to dissolve the businesses from the Public Notary
• Letter of Company Dissolution by the Economic Development Department (DED)

Documents Required for Dissolution of Branch

• Notarized Resolution by the board of Parent Company for liquidation of the Branch office
• Original License
• Require NOC from the bank, ministry of labor & immigration and RTA

Documents Required for Cancellation of Industrial Unit

• Certificates issued within the different Emirates indicating the cancellation of license(s).
• Original copy of accounts liquidation approved by the partners and stamped by the legal liquidator.
• NOC regarding cancellation issued by the Ministry of Labour and Social Affairs.
• Visa Cancellation of the partner(s) if they are sponsored by their license.
• Copy of the notice of the company’s dissolution and appointment of liquidator to be printed in two local newspapers.
• Partner’s letters for the agreement of the liquidation of the corporate.