One Stop Company Liqudation Solution in UAE

• Voluntary Liquidations – Shareholders of a company may elect to liquidate a solvent company or the directors of an insolvent company may choose to cease further trading and liquidate its assets in order to pay its creditors.
• Compulsory Liquidations: If a company’s debts are not paid on time, creditors may request the courts to liquidate the company in order for them to collect their dues. The courts may decide to force a company to liquidate and sell its assets in order to pay outstanding debt.

Even if there are no debts to be paid to creditors, it is highly advisable to formally liquidate a company rather than simply allowing your trade license to expire. There are many procedures to be completed when formally liquidating a company. Ignoring these may attract various penalties and could also result in the ‘blacklisting’ of company, as well as its directors and shareholders, by government authorities in UAE. This may impact on their involvement in other businesses or damage their ability to set up another company in future.

A liquidator is a UAE-registered agent or a firm, typically a Chartered accountancy or audit firm that is assigned to act on behalf of the company to sell its assets in order to generate cash to discharge any outstanding liabilities. A liquidator may be appointed by shareholders via resolution or may be appointed by the courts in the case of compulsory liquidation. Once appointed, the liquidator will issue an official letter of acceptance at the initial stage. Once all its duties are completed, they will prepare a statement of affairs and the liquidator’s report, which are essential to finalise the liquidation process.

• The type of ownership
• The type of liquidation.
• The jurisdiction of registration, whether mainland Emirates or free trade zone.
• Appointment of Liquidator
• Notification & Registration
• Settlement of Debts and Liabilities
• Selling Off Assets

• The liquidator must obtain clearance certificates from:
• Ministry of Finance (tax clearance, if applicable)
• Ministry of Labour (employee clearance)
• Immigration Department (cancel visas, labor cards)
• Municipality and other relevant bodies.

The liquidation process generally takes 3 to 12 months, depending on the company’s size, debts, and clearance procedures.

Free Zone Companies
have specific liquidation procedures governed by the respective Free Zone Authority.
Bank Account Closure
requires completion of liquidation and clearance certificates.
Sponsorship and Visa Cancelation
is an integral part of liquidation for companies with employees on sponsorship. Outstanding tax or debt obligations must be settled before final deregistration
VAT & VAT deregistration process