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DMCC Company Liquidation

DMCC Liquidation Services in Dubai

The Emirate of Dubai has several Free Zones, and the Dubai Multi Commodities Center is one of the fastest-growing Free Zones in the UAE. Setting up a company compels businesses to adhere to government statutes and regulations; nevertheless, it is equally vital to comply with all the legal channels when dissolving a company in the UAE.

Company liquidation in Dubai involves several government protocols that business owners ought to abide by before winding up a business. Farahat and Co. is a registered DMCC Auditor and Company Liquidator. we have a proven track record of efficiently carrying out company liquidation and winding up businesses.


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What Are the Types of DMCC Company Winding Up?

Winding-Up TypeWhat It MeansWhen It Applies
Summary Winding-UpThe directors declare that the company’s affairs are capable of being
finally wound up within six months from commencement of the winding-up process.		Where the company can complete its affairs within the applicable
summary winding-up period.
Solvent Winding-UpThe directors declare that the company’s affairs are capable of being
finally wound up within 12 months from commencement of the process.		Where the company is being voluntarily wound up and meets the applicable
solvency requirements.
Insolvent Voluntary Winding-UpA voluntary winding-up procedure involving participation by the
company’s creditors.		Where the company is insolvent and the applicable creditor procedures
are required.
Involuntary Winding-UpA compulsory winding-up procedure involving the competent Court under
the applicable DMCC Company Regulations.		Where the circumstances meet the requirements for an involuntary
winding-up process.

Which DMCC winding-up procedure applies to your company?
The appropriate route depends on the company’s financial position, circumstances and ability to complete its affairs within the applicable period. Summary, solvent, insolvent voluntary and involuntary winding-up are different procedures and should not be treated as interchangeable.

The Scope and Types of DMCC Company Liquidation

The Scope and Types of DMCC Company Liquidation?

Primarily, liquidation is undertaken when a company cannot meet its financial obligations and can no longer run its operations. The company’s assets are often sold to meet its immediate commitments based on priority. Moreover, several reasons influence company liquidation, in this instance, it is highly essential to hire approved and reputable DMCC Liquidators to thoroughly audit the business’s financials.

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The Liquidation Procedure for Companies in DMCC

The Liquidation Procedure for Companies in DMCC

  • A formal online application has to be filled out on the DMCC online portal. The company chooses the mode of winding up the company and submits the resolution. The company will receive a notification once the application is presented on the portal.
  • The DMCC authority verifies the application and contacts the shareholder of the company. After careful consideration, it will be decided if the company can retain its business under DMCC or if it must wind up.
  • All the relevant documents must be uploaded on the DMCC Portal. The letter of appointing a liquidator and the acceptance letter from the liquidator have to proceed with the liquidator’s services for the company.
  • DMCC entities ought to submit all original documents to the DMCC Client Service Center and apply for the cancellation of the visas of active employees, their access cards, and permits. The DMCC authority will
    initiate the cancellation of the visas and put out a publication of the company winding up for 14 consecutive days.


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How to De-Register Your Company in the DIFC?

Essential Requirements for DMCC Approved Auditor to Complete the Audit Report

  • Previous years Audited company financials.
  • Assist the company in getting clearance from third-party service providers and authorities.
  • Clearance from the landlord & NOC from customs
  • Successful closure of the active employee’s visas and access cards
  • A shareholder’s resolution for winding up the company

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Avail Top DIFC Company Liquidation Services

Avail Expert Liquidation Services from Approved Liquidators in DMCC.

The liquidation procedure for companies in DMCC is often burdensome for business. Thus, availing the assistance of approved Liquidators in UAE is highly vital, Farahat & Co. is a reliable and trusted point of conduct for DMCC liquidation procedures.

We have a proven track record of efficiently assisting companies in deregistering trade licenses and we wholly undertake our procedures in full compliance to the set standards, laws and regulations. Contact us today and we shall be happy to assist you!


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FAQs About DMCC Company Liquidation

What is DMCC company liquidation?

DMCC company liquidation is the formal process of winding up and closing a company registered with the Dubai Multi Commodities Centre (DMCC). The process can involve appointing a liquidator, dealing with the company’s assets and liabilities, completing employee and visa procedures, satisfying applicable creditor requirements, submitting the required documents, terminating the licence, and completing final deregistration.

What are the types of DMCC company winding up?

DMCC provides different winding-up routes depending on the company’s financial position and circumstances. These include summary winding up, solvent winding up, insolvent voluntary winding up, and involuntary winding up by the competent Court. The appropriate procedure depends on the company’s ability to settle its affairs and the circumstances leading to closure.

What is summary winding up in DMCC?

Summary winding up is a form of winding up in which the directors declare that the company’s affairs are capable of being finally wound up within six months from the commencement of the winding-up process, subject to the applicable DMCC requirements.

What is solvent winding up in DMCC?

Solvent winding up applies where the relevant solvency requirements are satisfied and the directors declare that the company’s affairs are capable of being finally wound up within 12 months from the commencement of the winding-up process, subject to applicable DMCC requirements.

What is insolvent voluntary winding up in DMCC?

Insolvent voluntary winding up applies where a company is unable to complete its closure as a solvent company and the applicable winding-up process involves its creditors. The procedure for dealing with assets, liabilities and creditor claims differs from a solvent winding up.

What is the difference between DMCC company winding up and company deregistration?

DMCC company winding up is the liquidation and closure process for a company and includes company deregistration and licence termination as part of the applicable procedure. DMCC’s separate company deregistration service applies to a company that was registered but never issued a licence. The correct service therefore depends on the company’s registration and licensing status.

Does a DMCC company need a liquidator?

A liquidator is required where the applicable DMCC winding-up procedure requires one. The liquidator manages the relevant liquidation responsibilities, which can include dealing with the company’s affairs, assets and liabilities, creditor matters, required reports, and documents needed to complete the winding-up process.

What are the main steps in DMCC company liquidation?

The exact process depends on the type of winding up and the company’s circumstances. It can include approving the winding up, appointing a liquidator where required, submitting the applicable resolutions and documents, cancelling employee visas and permits, dealing with assets and liabilities, completing creditor and notice requirements, obtaining applicable clearances, terminating the licence, submitting the liquidator’s documents, and completing final deregistration.

What documents are required for DMCC company liquidation?

The required documents depend on the type of winding up and the company’s circumstances. They can include shareholder or board resolutions, liquidator appointment and acceptance documents, company registration and licence records, financial information, employee and visa cancellation records, applicable clearances, creditor-related documents, and the liquidator’s final reports or declarations required for closure.

How long does DMCC company liquidation take?

There is no single timeframe that applies to every DMCC company liquidation. The duration depends on the type of winding up, the company’s assets and liabilities, employee and visa cancellations, creditor matters, notice periods, required clearances, documentation, and whether there are outstanding disputes or obligations.

How much does DMCC company liquidation cost?

DMCC currently lists a Company Winding Up charge of AED 4,015 per request. This is the DMCC authority charge and should not be treated as the total cost of liquidation. Liquidator fees, professional fees, employee and visa cancellation costs, outstanding liabilities, clearances, and other applicable expenses may increase the overall cost. DMCC fees are subject to change, so the current schedule should be checked before starting the process.

How much does DMCC company deregistration cost?

DMCC currently lists Company De-registration at AED 2,015. According to DMCC’s schedule of charges, this service applies to a company that was registered but never issued a licence. Companies that have been licensed and need to close should determine the applicable winding-up and licence termination procedure instead. DMCC fees are subject to change.

What happens to employees and visas when a DMCC company is liquidated?

A DMCC company with employees must address applicable employment, visa, permit and sponsorship matters during the closure process. Employee residence visas and other applicable permits may need to be cancelled or otherwise resolved before the company can complete the relevant winding-up and deregistration requirements.

What happens to outstanding debts during DMCC liquidation?

Outstanding liabilities and creditor claims must be addressed as part of the winding-up process. How they are handled depends on whether the company is solvent or insolvent, its available assets, creditor claims, and the applicable winding-up procedure. Debts should not simply be ignored when the company stops operating.

Can an insolvent DMCC company be liquidated?

Yes. DMCC provides an insolvent voluntary winding-up route, and involuntary winding up may also apply in relevant circumstances. The appropriate procedure depends on the company’s financial position, assets, liabilities, creditor claims, and applicable legal requirements.

Is a public notice required for DMCC company liquidation?

Notice and publication requirements can apply during the DMCC winding-up process. The exact requirement and timing depend on the applicable procedure and the company’s circumstances. Businesses should follow the current DMCC winding-up requirements rather than relying on a general UAE liquidation procedure.

What happens to a DMCC company's bank account during liquidation?

The company’s banking arrangements need to be addressed as part of the closure process. Outstanding transactions, liabilities and other banking requirements may need to be completed before the corporate bank account is closed. The bank may also request liquidation or company closure documents according to its own procedures.

Can a DMCC company simply cancel its licence instead of liquidating the company?

Licence termination and company winding up should not be treated as the same procedure. DMCC states that where a company itself is to be closed, the Company Winding Up process should be followed. Licence termination may apply separately in circumstances such as terminating an additional active licence without closing the company.

Can a DMCC company remain dormant instead of being liquidated?

DMCC provides a voluntary suspension of licence, or dormancy, service subject to applicable eligibility requirements and permitted periods. Dormancy does not close or liquidate the company; it temporarily suspends the licence. Businesses should therefore decide whether they intend to pause operations or permanently close the company.

How can FAR Consulting Middle East help with DMCC company liquidation?

FAR Consulting Middle East provides professional DMCC company liquidation support, including assistance with the applicable winding-up procedure, liquidation documentation, liquidator requirements, authority coordination, employee and visa matters, creditor-related procedures, licence termination, and final deregistration. The required services depend on the company’s financial position, structure, and circumstances.

Talk to Our Approved DMCC Liquidators Dubai: WhatsApp Text Message Only: +971 55 8377872 | Phone Call Only: +971 50 7869887 | Tel: +971 4 2500251 | E-mail: [email protected]
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