How to liquidate a company in Dubai?
Company liquidation in UAE means closing down a business entity and its operations in a legal way. The process consists of the discharge of debts and distribution of the company’s assets, cancellation of the trade license, and finally, company de-registration by the relevant authority.
At FAR Consulting Middle East, we provide professional company liquidation services in Dubai and across the UAE. The liquidation process is carried out by our qualified, licensed liquidators, which includes drafting resolutions, settlement of outstanding debts, notice publication, and final deregistration.
It’s important for businesses to comply with laws related to closing any mainland LLC, free zone company, or offshore entity. Ensures compliance with all UAE laws, including Federal Decree-Law No. 32 of 2021 and No. 51 of 2023. At FAR Consulting Middle East, we make business closure simple, compliant, and, above all, stress-free.
Request A Proposal What Takes Place When a Company Enters Liquidation?
When a company enters liquidation, its operations are wound up, its assets are sold, and its debts are paid off. Through the process, it is possible to pay off the creditors and deregister the company with Dubai authorities officially.
What are the Steps Involved in Company Liquidation in Dubai?
The key steps involve appointment of the authorized liquidator, notifying the concerned authorities, discharge of the liabilities, selling the assets, obtaining approvals, and deregistration of the company with Department of Economic Development (DED) or the concerned free zone authority.
How Do I Liquidate a Company in Dubai?
In order to liquidate a company in Dubai, you must follow the process by law: appoint a licensed liquidator, settle all liabilities and debts, file required documents with the DED or free zone authority, and obtain a liquidation certificate as proof of the company’s closure.
Do I Need to Inform Employees During Liquidation?
Yes, the employees have to be informed about the liquidation of the company. Employees are entitled to payment of all salary entitlements, end-of-service gratuities, and other benefits under UAE labor law.
What Happens if the Company Has Outstanding Debts?
Outstanding loans are to be settled before the legal liquidation of the company. The liquidator will give priority to the creditors and settle all the debts or negotiate them accordingly under Dubai company liquidation services.
Can a Shareholder Object to the Liquidation Process?
Shareholders can object if they feel liquidation of company procedure is not fair or against the articles of association of the company. But court actions may be required to settle such issues.
What is a Liquidation Certificate?
A liquidation certificate is a legal certificate issued by the relevant authority, which states that the company has completed the process of liquidation, all dues are cleared, and the company is de-registered officially.
How Much Does Liquidation Cost in Dubai?
The cost of liquidation in Dubai depends on different factors, like company nature, outstanding debts, and charges of the authorized liquidator. Expert consultancy will provide correct estimation as per your company situations.
How Long Does the Liquidation Process Take?
Liquidation in Dubai typically lasts 3–6 months, depending on the accounts’ complexity, debts, and asset liquidation. The free zone companies might have a slightly different timing.
What Are the Major Causes of Liquidation in the UAE?
Financial insolvency, business strategic considerations, failure to comply with regulation, or loss of purpose are typical causes of liquidation. Understanding the reason for it makes the process more comfortable to manage.
How Long Can a Company Stay in Liquidation?
A company remains in liquidation until all its debts are paid, assets sold, and final approvals issued by concerned authorities. Payment or documentation delay can extend this.
What Happens if a Company is Not Deregistered Properly?
Failure to comply with the due deregistration of a company can result in fines, litigation, and ongoing liability for the shareholders and directors. Company liquidation services in Dubai effectively see to it that the closure of the company is legally compliant and the company is protected from future claims.
Are the Procedures Different for Free Zone Companies?
Yes, although the overall liquidation of company process is almost identical, each Dubai free zone has its own requirements, fees, and processing times. There is a need to comply with the rules of the concerned free zone authority.
How Can FAR Consultancy Middle East Help with Company Liquidation Services in Dubai, UAE?
FAR Consultancy Middle East provides company liquidation services in Dubai, assisting businesses in compliance, debt settlement, asset sale, and documentation for your stress-free and seamless company liquidation.
