Voluntary company liquidation in the UAE is a formal procedure by which the operations of a company are brought to an end. The Abu Dhabi Global Market (ADGM) is a premium financial free zone in Abu Dhabi that allows companies to exit operations through voluntary liquidation.
However, you can wind up a company in ADGM only by appointing ADGM-approved liquidators.
Closing down a company in the UAE is not an easy decision for business owners. However, one has to diligently follow all the ADGM liquidation requirements and navigate its complexities in order to avoid additional penalties.
This is where hiring the best company liquidation services in the UAE becomes significant for businesses. Mr Jitendra Gianchandani and Ms Divya Gianchandani, both qualified chartered accountants and founders of Jitendra Chartered Accountants (JCA), are officially registered with ADGM as a company liquidator.
JCA, an audit firm based in Dubai, UAE, has been offering its exceptional services since 2001. We can help you wind up a company in ADGM as per the free zone authority’s rules and regulations.
Reasons for Company Liquidation in ADGM
A company registered with ADGM may opt for voluntary liquidation for a multitude of reasons. Some of the common reasons for closing down a company in ADGM include debt, financial crisis, adverse market situation, low demand for products or services, recession etc. However, a company may also exit operations when it stops being viable; the founder dies without any successor or upon achieving its desired objective.
Who can Act as a Liquidator in ADGM?
ADGM keeps a registry of company liquidators in the UAE that are approved by the free zone authority. A company operating in ADGM is required to hire liquidators in the UAE that are registered with and approved by the ADGM authority. ADGM-listed company liquidators will help the business owners shut down their companies as per the free zone’s rules and regulations.
What is the Process of Company Liquidation in ADGM?
The ADGM Authority has put in place a clearly delineated process for winding up the companies operating under its license. Business owners need to abide by the procedure to wind up their ADGM companies without any delay or headache. The following are the key steps in the process of closing down a company in ADGM:
- Make a Declaration of Solvency; get it signed by all shareholders; submit it to ADGM authority
- Pass a resolution to wind up the company; submit it to the ADGM authority
- Appoint an ADGM-approved liquidator
- Submit the liquidator’s acceptance letter to the ADGM authority
- Terminate the lease
- Cancel all the visas issued under the company’s sponsorship
- Cancel the company’s establishment card
- Return original documents such as the company’s trade license, Memorandum of Association (MoA), Certificate of Registration, Share Certificates, etc.
- Submit a bank account closure letter.
- Submit NOCs/clearance letters from Abu Dhabi Customs, Abu Dhabi Distribution Co (ADDC), and Etisalat/Du.
- The company must publish an advertisement in an English newspaper for three consecutive days with wide circulation. There will be a notice period of 21 days after the advertisement, during which the creditors or any interested parties can raise any claim.
- Submit the final liquidation audit report to the ADGM authority
- ADGM registrar strikes off the company’s name from the register
- ADGM authority cancels the company’s trade license
Compliance Requirements to Meet in an ADGM Liquidation
The process of voluntary company liquidation in ADGM can become more complex if you ignore the following compliance requirements:
- Apply for VAT Deregistration if the company is a VAT registrant
- Hand over the Real Beneficiary Register and Partners and Shareholders Register within thirty days from the date of the liquidator’s appointment
- Ensure the liquidator or administrator is maintaining those Registers for a period of at least five years from the date of liquidation
- If the company is within the scope of Economic Substance Regulation (ESR), make sure all ESR-related obligations are met
Services offered by ADGM-Approved Liquidators
By hiring JCA’s company liquidation services in Abu Dhabi, you can get assistance with the following requirements:
- Drafting the Board Resolution / Shareholder’s Resolution
- Legalizing documents required for liquidating a company registered with ADGM free zone
- Drafting the Power of Attorney (As applicable)
- Auditing the financial statements for liquidating the ADGM company
- Preparing the liquidation Report of the ADGM free zone entity
- Publishing the liquidation advertisement in local newspapers
- Cancelling the company’s Establishment Card
- Cancelling the Labour Card of the company
- Cancelling the company’s visas and work permits
- Securing the Final Liquidation Certificate for the ADGM company
Hire ADGM-Approved Company Liquidators
The process of voluntary company liquidation in ADGM involves complex steps and requirements. However, hiring the best ADGM-listed liquidators can make the process simple. When it comes to company liquidation services in the UAE, look no further than Jitendra Chartered Accountants (JCA). We are listed with ADGM and can execute the liquidation process seamlessly and in compliance with the existing regulations. We have liquidated both mainland and free zone companies across the UAE. JCA’s experience and learning curve will allow you to complete the process fairly quickly.