There is a plethora of Free Zones in the UAE that are highly significant for the economy surges. Running a business operation in UAE Free Zones is an immense opportunity for businesses to thrive, however, Free Zones in the UAE is no exception to business liquidation. There are multi circumstances that can drive businesses to deregister. The reasons might include, bankruptcy or the decision of the shareholders to step back and shut down the business completely (liquidation). This article will thoroughly discuss the procedure, documentation, and essential requisites of company deregistration in the Free Zone.
Documents Required to Deregister a Company in UAE Free Zone
For company liquidation in Free Zone, the following essential requirements are to be fulfilled:
- Finance Clearance: From the financial authorities of the Free Zone, where the company is domiciled. You need to obtain clearance to justify that you have paid all of your outstanding dues.
- Clearance for Visas: You will have to cancel all visas that have been sponsored by your Free Zone company and receive clearance from the relevant government body, that you have successfully canceled all visas.
- Customs Clearance: You will need to obtain a clearance letter or outstanding report from Dubai customs.
- Deregistration Fee Submission: You will need to submit the fees for company license cancellation of your Free Zone company which can be up to 6,500 dirhams. Obtain the receipt of fee submission.
- Fine Submission (if applicable): If your company’s trade license has long expired then you will have to pay a 1,000 dirham fine for each month after license expiration. Obtain the receipt of the fine submission.
- News Advertisement: You will need to advertise the news that you are closing your free zone company so that debtors can claim (if any).
More documentation requirements, such as, in some cases.
- You have to attend a customer relations exit interview for the process of closing your free zone company and giving away the building in the free zone.
- You need to complete the deregistration form required for company termination. At the registration section, the company owner has to sign the form and return all the certificates of the company to the registration section i.e., audit reports, certificates of share, formation certificates, etc.
- The registration section will also require a liquidation report that you will need to obtain from your officially hired auditors or approved liquidators in UAE.
- For the license and lease section, the company owner needs to submit the lease termination form and the deregistration form along with the keys to the company building.
- If you are the owner of restaurants, shops, LIU, plots, or warehouses, then you will need to obtain a payment receipt or final clearance from Dubai Electricity and Water Authority (DEWA).
- You will also need to obtain clearances from RTA (Road and Transport Authority).
- Clearances or outstanding reports will also need to be obtained from Etisalat for your trade license cancellation in UAE free zone.
What Happens if a Company Loses a Certificate I.e., Audit Reports, Certificates of Share, Formation Certificates, Etc.?
Since it is mandatory to submit all the valid certificates of the company back to the registration section, it is imperative that the company owner keeps these certificates safe. In case the company owner happens to lose any of these certificates, a letter has to be sent to the registration section to inform them of the lost certificates. The authority will address the Dubai Police Station in an attempt to find the lost certificates and submit them back to the registration section.
Is It Possible to Freeze a Company’s Business License in a Free Zone?
Yes, it is completely permissible in the UAE to freeze or temporarily stop the business functions of a company. This allows the business to take a break from taxation and other compliance regulations. However, this break can be of no more than 3 years and no less than 1 year. You have to choose between 3 years, 2 years, or 1 year since these are the only hard and fast options available for companies in the UAE.
What Happens if a Free Zone Business Loses the Building Key?
Since there is a requirement of submitting back the building keys to the license and lease section, the company owner should have them at hand. In case if the keys are somehow lost, the owner needs to inform the license and lease section of the situation.
Hire Best Approved Liquidators in UAE
The process of canceling a trade license in Dubai is often complex since it is shrouded with complex legal formalities and protocols. It is highly advised that you consult qualified liquidators to ensure a seamless liquidation process. Our procedures are certified, trusted, and top-notch. So, contact us today and we shall be happy to assist you.