Company Liquidation Dubai UAE, Company Liquidation Process

Experienced Company Liquidation Services in Dubai, UAE

We understand how tough liquidation can be for companies and founders. We strive to minimize your woes so you can make a fresh start with peace of mind. Company liquidation in UAE is a very lengthy process. Closing a company in UAE can be time consuming and a complicated procedure but our experienced and influential liquidators in UAE can simplify all the legal procedures and assist you in the company liquidation process.

Liquidation can be a complicated and challenging process for companies facing financial crises. Also known as the cancellation or dissolution of a company, company liquidation in Dubai or UAE can be a tedious and time-consuming task if not managed properly. At Horizon Biz Consultancy, we understand the importance of a professional and dedicated approach to ensure a smooth and stress-free process for our clients in such difficult times. And that is why we offer end-to-end liquidation services for various business establishments in Dubai, UAE, such as LLCs, offshore establishments, and Free Zone companies. We manage it all right from the start to finish.

The process of company liquidation involves complex documentation and negotiations with involved parties and government agencies. De-registration is a crucial aspect of the process that requires attention. In addition, there are a plethora of important tasks – closing bank accounts, settling utility bills, obtaining certificates from government authorities, preparing final audit reports, and cancelling visas. Our team at Horizon Biz Consultancy will ensure all of these tasks are taken care of in a timely and efficient manner.

How to Liquidate Your Company in the UAE?

In the UAE, when a company is facing financial difficulties and is unable to pay its debts or continue operating, liquidation is needed. In such cases, liquidating the company is a legal process that allows for the orderly winding up of the company’s affairs and the distribution of its assets to its creditors and shareholders. It also helps to avoid legal action against the company and its directors and allows for a fresh start for the stakeholders involved.

The 7-step-process of company liquidation in the UAE generally involves the following steps:

Step 1: Board Resolution

A board meeting is held to propose the liquidation process and appoint a liquidator. The liquidator can either be appointed by the shareholders or the court, depending on the situation.

Step 2: Liquidator Appointment

A liquidator such as Horizon Biz Consultancy is appointed to manage the liquidation process. The liquidator is responsible for selling the company’s assets, settling its debts, and distributing any remaining proceeds to the shareholders.

Step 3: Public Announcement

A public announcement is made in two Arabic newspapers, one local and one national, about the company’s liquidation process.

Step 4: Cancellation of Licenses and Permits

The company must cancel all of its licenses and permits from the relevant authorities, such as the Dubai Chamber of Commerce and Industry and the Department of Economic Development. We are well-versed with this process and support your company

Cancellation of a Limited Liability Company (LLC) License

Cancellation of contracts of all the employees of the company.
Decision of the director or the board of directors for dissolution.
Appointment of a liquidator, authorized by a notary public.
Fees payment to the Department of Economic Development (DED) for the issuance of company liquidation certificate.
Advertisement of liquidation in two local Arabic newspapers for one day and wait for 45 days to check whether any client has financial claim against the company.
Present the original newspaper advertisement along with the audit report of the company to the Department of Economic Development (DED).
Clearance letter from Ministry of Labour, DEWA, Etisalat, Immigration and visa cancellation of all the partners.
Liquidation certificate and copy of Director Board resolution.

Cancellation of Sole Establishment Company

Cancellation of contracts of all the employees of the company.
Cancellation of Labour Establishment Card form from Tas’heel Center.
Get seal and authorized signature of the company on the application and submit at any of the Labour office branches. The Labour office will issue their NOC by putting a stamp on the application you submitted.
Then type the license cancellation form of the Department of Economic Development, get the signature of the owner and submit it to the DED.
Pay fees at the Department of Economic Development for cancellation.
The Economic Department will issue a file number and take it to the Department of Protective Systems to get clearance from the Police authority. If there are no violations in Police records, they will send clearance messages to DED electronically.

Step 5: Debt Settlement

The company must settle all of its outstanding debts with its creditors, including employees, suppliers, and banks. We calculate the proceeds and create a best way forward negotiating with suppliers, creditors and others along the way.

Step 6: Distributing Remaining Funds

Once all debts have been paid, any remaining funds are distributed to the company’s shareholders. Our liquidator assists you with this step with transparency and discretion.

Step 7: De-Registration

The final step is to apply for de-registration of the company with the relevant authorities, which thanks to our network, connections and on-ground knowledge is hassle-free for our clients.

How Horizon Biz Consulting Can Help

As expert liquidators and chartered accounting and auditing firm operational for 60+ years, we can assist you every step of the liquidation process. We can even help you sell your company’s assets to pay off outstanding debts.

When appointed, our liquidator shares a formal letter of acceptance. Once we wind everything up, you can expect an official statement of affairs and a liquidator’s report, necessary to complete the liquidation process.

Our liquidator will fulfill the following roles:

Evaluate your company’s assets and liabilities, and be accountable for any claims evaluations. We’ll also be responsible for distributing the remaining earnings from the sale of your company’s assets.
Provide information to your company’s creditors from time to time.
Supervise the collection and distribution of your business assets.
Prepare the final liquidator’s report and the statement of affairs.

Entrust your company liquidation in Dubai to Horizon Biz Consultancy to simplify the process and avoid unnecessary expenses. We offer liquidation services for both Free Zone and Offshore companies in the UAE.

Company Liquidation Services Dubai