COMPANY CLOSING PROCEDURE IN THE UAE

The procedures for closing a company in the UAE depend on its place of registration. These procedures can vary across the Free Zones and the Mainland of the UAE. At Pro Consultancy UAE, we specialize in assisting you with the smooth liquidation of your company in the UAE. Our team of expert professionals ensures that the company closing process is conducted in full compliance with the legal requirements of the respective business jurisdiction where your company is registered. Rest assured, we strive to make the entire process hassle-free for you.

PROCEDURES OF CLOSING DOWN OF AN LLC COMPANY IN DUBAI

Below are the key steps involved in the liquidation or closure procedures for LLC companies in the UAE. These steps ensure a smooth process while maintaining the integrity of the original content.

1. APPOINTMENT OF CONSULTANT / LIQUIDATORS

To initiate the process of closing a company in Dubai, it is imperative for the company to designate a legally authorized Company Liquidator. At Pro Consultancy, we collaborate closely with you to ensure a seamless and hassle-free closure of your company, adhering to all necessary procedures.

2. BOARD RESOLUTION FOR LIQUIDATION

To initiate the liquidation process, it is necessary to draft, sign, and have the board of directors of the company attest to a Board Resolution. This resolution serves as a formal document outlining the decision to wind down the company’s affairs.

3. CLEARANCE FROM MINISTRY OF LABOUR & IMMIGRATION

Before the final submission of the supporting documents, the company needs to acquire a clearance certificate from the Ministry of Labor & Immigration. It is crucial to optimize word choice, structure, readability, and eloquence while preserving the original meaning.

4. BANK CLOSURE LETTERS

The company needs to initiate closure procedures and obtain official Bank Account Closure letters from all affiliated banks.

5. FINANCIAL LIABILITY CLEARANCE

The company is responsible for resolving all financial obligations, including payments to creditors, clients, partners, suppliers, and employee settlements.

6. NEWSPAPER ADVERTISEMENT

The company liquidator has to publish in the local UAE newspaper about the company liquidation and get a No Objection from all the stakeholders.

7. NON-LIABILITY CERTIFICATE & LICENSE CANCELLATION CERTIFICATE

The auditors are responsible for performing a financial audit and issuing a Non-Liability Certificate. Subsequently, the company needs to contact the relevant authority (such as the Free Zone or the Department of Economic Development) where it is registered in order to obtain a License Cancellation Certificate.

DOCUMENTS REQUIRED

Closing a company in the UAE involves a well-defined procedure that includes several steps, along with the preparation of supporting documents, reports, and obtaining necessary clearances. After submitting and reviewing all the required documents, the concerned authority will issue a License Cancellation Certificate to the company.

DOCUMENTS REQUIRED INITIALLY FOR LIQUIDATION OF COMPANY IN UAE

The liquidation of a company requires certain documents to be submitted. Following are the important documents required for the liquidation of a company in the UAE.

•   Business License Copy
•   Memorandum of Association
•   Power of Attorney (if any)
•   Shareholders Resolution
•   Shareholders Passport Copy
•   Emirates ID Copy
•   De-registration Application Form

DOCUMENTS REQUIRED TO OBTAIN THE FINAL LICENSE CANCELLATION CERTIFICATE

•   All the above documents
•   Company Liquidation Audit report
•   Newspaper copy of Company Closing Advertisement

CLEARANCE TO BE RECEIVED FROM THE CONCERNED GOVERNMENT AUTHORITIES

•   Immigration Department
•   Labour Department
•   Electricity and Water Departments
•   Telecom Authority ( DU or Etisalat)
•   NOC letter from Landlord
•   Bank Account Closure letter

Closing an LLC company in Dubai typically takes around 60-65 days. During this process, there is a 45-day notice period after the publication of the company closure in local UAE newspapers to allow for third-party objections. Simultaneously, all necessary documentation and clearances must be obtained. The next step involves preparing an audit report, which can be done by legal firms or registered auditing agencies. This report is then submitted to the relevant authorities for review.

Once the notice period ends and all documents are in order, along with the audit report (also known as the Company Liquidation Report) and a copy of the newspaper publication, they must be submitted for review. Upon approval and payment of the license cancellation fees, the authority will issue the final License Cancellation Certificate.

COMPANY CLOSING IN THE UAE FREE ZONES

Closing procedures for companies in Free Zones vary depending on the relevant authorities where the company is registered. Unlike other jurisdictions, Free Zones do not require the appointment of a company liquidator for initiating the closing procedures. Instead, companies can directly reach out to the Free Zone Authority or seek assistance from business consultants to ensure a smooth and proper process.

To close a Free Zone company, the cancellation of employee visas and work permits is necessary. Additionally, employees must be provided with a two-month paid notice period before their contracts are terminated. Subsequently, the company should proceed with canceling all utilities and telecommunication services, while obtaining the necessary NOCs (No Objection Certificates). Finally, the company closure application can be processed.

Pro Consultancy UAE, serving as the registered agent for major Free Zones in the UAE, specializes in providing comprehensive company closure services. Our team of expert business consultants will guide you through the end-to-end company closing process in the UAE, ensuring full compliance with legal requirements and a seamless experience.

Talk to our company liquidation experts to know more!

HOW Pro Consultancy UAE WILL HELP YOU?

Pro Consultancy UAE offers comprehensive assistance in the company liquidation process. From preparing the necessary documentation to obtaining clearances and audit reports, we ensure a seamless closure for your business in the UAE. Our cost-effective company closing package includes obtaining the license cancellation certificate. Experience a hassle-free company closure in the UAE with Pro Consultancy UAE. If you would like to learn more about company closing in the UAE, don’t hesitate to reach out to our Company Liquidation Experts today!