Skip to content Skip to footer
CassaCorpLogo
CASSA Services
Contact
CassaCorpLogo
CASSA Services
  • Phone
  • WhatsApp
  • Email
  • Linkedin
× Send
Close

Company Liquidation in Dubai

Company Liquidation in Dubai

A procedure wherein a limited liability company, a sole establishment, a free zone company, or an establishment terminates its operations and distributes its assets among its creditors and shareholders.
The term “liquidation” is often used interchangeably with “winding-up” or “dissolution of a business,” although technically, dissolution refers to the final stage of the liquidation process.
The primary goal of liquidation is to end the company’s existence and ensure a fair distribution of its remaining assets to creditors and shareholders.

Voluntary Liquidation

Voluntary Liquidation

This occurs when a company’s shareholders decide to dissolve it due to financial difficulties and inability to pay creditors.

In this case, creditors have priority in asset distribution.

Compulsory Liquidation

Compulsory Liquidation

Initiated by a court order, this involves the forced dissolution of a company. The assets are then distributed among creditors and contributors based on claim priority.

Creditors often initiate this type of liquidation when they cannot collect owed money through other means.

Company Liquidation Process

Company Liquidation Process

Step 1
Board Meeting
The board holds a special meeting to outline the process
Step 2
Liquidator Appointed
A Liquidator manages proceedings and adresses creditor requests
Step 3
Submit Documents
Submit decision and liquidator's appointment documents
Step 4
Cancel Permits
Cancel special permits or licenses in Dubai
Step 5
Branch Documents
Branches in Dubai need parent company documents

Company Liquidation Process

Company Liquidation in Dubai

Company Liquidation in Dubai

 

Before shutting down your company in Dubai, it is crucial to address several important tasks and requirements. These include canceling the company and business name, ensuring proper payment and benefits for employees, canceling all tax registrations, and complying with other legal obligations.

Simply selling the business may not always be the best solution to handle these responsibilities effectively.

Documents Required for Free Zone Company Liquidation

Documents Required for Free Zone Company Liquidation

  • Board resolution for liquidation and appointment of a liquidator
  • Clearance from the immigration and labor department of the free zone authority (FZA)
  • Cancellation and clearance of all visas by the immigration and labor department
  • Submission of a liquidation letter
  • Clearance certificate from the free zone authority
  • Clearance certificate (NOC) from the business unit
  • CLD clearance certificate from the government section
  • Original free zone company license
  • Settlement of all fees and charges with the free zone
* These requirements and procedures may vary slightly between free zones and are subject to change.

Documents Required for LLC Company Liquidation

For liquidating a limited liability company (LLC) in the UAE, the following documents are typically required:
  • Notarized board resolution for liquidation and appointment of liquidators
  • Letter of acceptance from the appointed liquidator
  • Registration and licensing application (Form No. BR/1) from the Economic department of the Emirates
  • Original license and legal documents of the company
  • Release letter from the property owner
  • No-objection certificates (NOCs) from the Ministry of Labor & Immigration and the Road and Transportation Authority (RTA)
  • Certificate of no liabilities and closure of bank account
  • Shareholders' resolutions to dissolve the business from the public notary
  • Letter of company dissolution from the Economic Development Department (DED)

Documents Required for Dissolution of Branch

Documents Required for Dissolution of Branch

  • Notarized resolution by the board of the parent company for liquidation of the branch office
  • Original license of the branch office
  • No-objection certificates (NOCs) from the bank, the Ministry of Labor & Immigration, and the Road and Transportation Authority (RTA)

Documents Required for Cancellation of Industrial Unit

Documents Required for Cancellation of Industrial Unit

The following certificates and documents are typically required to complete the liquidation of a company in the UAE:
  • Certificates indicating the cancellation of license(s) in the different Emirates
  • Approved and stamped original copy of the account's liquidation by the partners and the legal liquidator
  • No-objection certificate (NOC) regarding cancellation from the Ministry of Labour and Social Affairs
  • Cancellation of partner(s) visa if they are sponsored by their license
  • Notice of the company’s dissolution and appointment of liquidator printed in two local newspapers
  • Partner’s letters indicating their agreement for the liquidation of the company

Contact us

Book your free consultation

Book your free consultation

At CASSA, we know that liquidating a business can be stressful, so we’re here to help. Our expert team offers thorough guidance to reduce legal liabilities and financial losses during the license cancellation process in Dubai. We collaborate with relevant authorities to ensure a smooth and seamless liquidation process. We provide various business closure options, including winding up, statutory liquidation, or simple deregistration. Each option has its own legal and cost implications, which we will explain in detail. We can also assist in finding a third party to purchase the liquidating company and manage all related matters.

* We offer these services through our licensed agents and strategic partners, ensuring the highest level of professionalism and reliability.

When it comes to liquidating a business, we assist you in considering all important aspects, including:
  • Preparation for business liquidation
  • Owner Responsibilities
  • Cost of closing down
  • Insolvency and bankruptcy
  • A thorough review of all compliances