A mainland company in Dubai can be closed down through a process called voluntary liquidation. Liquidation is the process by which a company is formally shut down through an appointed company liquidator in the UAE.
The Dubai mainland company liquidation process requires you to cancel the trade license, visas, and other permits before winding up the operations.
The process of winding up a mainland company in Dubai requires you to appoint a company liquidator (This is mandatory and not optional). Jitendra Chartered Accountants (JCA) is one of the best company liquidators in the UAE who can help you wind up your company without any hassle.
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The Best Company Liquidators in Dubai
JCA offers the best company liquidation services in the UAE and our chief goal is to help our clients close their companies in peace of mind. Closing down a company in the UAE requires you to appoint a liquidator.
A liquidator can be an audit firm with a valid license to carry out its operations in the UAE. JCA is an audit firm with more than two decades of experience and is approved by mainland and most free zone authorities in the UAE.
Stages of Company Liquidation in Dubai Mainland
The mainland liquidation process in Dubai involves certain critical steps:
- Preparation of board resolution by shareholders and attestation from courts
- Appointment of liquidator
- Obtaining a letter from the liquidator, accepting the responsibility
- Obtain initial approval from Dubai Economy and Tourism (DET, formerly DED)
- Announce the liquidation decision via a notice in two local Arabic newspapers after obtaining initial approval. It gives a 45-day lock-in period for other parties to make claims
- Obtain a declaration letter from shareholders stating the absence of objections
- Get the final liquidation report and liquidation certificate from the liquidator in Arabic for submission to DET.
- Submit the letter to the DET
- Get approvals for license cancellation
- Cancel the establishment card and visas
Our Company Liquidation Services in Dubai
JCA’s services allow you to complete the liquidation process in line with the regulations. Our liquidation services include:
- Drafting of relevant documents related to liquidation
- Preparation board resolution
- Drafting the liquidator’s acceptance letter
- Drafting the application for liquidation and submitting it to the authority
- Newspaper advertisement for liquidation
- Assistance in obtaining clearance letters
- Audit the financial statements for liquidation of the company
- Preparing the Liquidation audit report
Major Documents required for liquidation apart from the above:
- Bank Closure letter with bank statement up to closure
- Clearances from Dewa, Etisalat, Du, Rent, PO Box, etc.
- Trial balance and Documents to support all the transactions (as required in the audit)
- NIL Assets and NIL liabilities to ensure
- If trading company then Customs No Objection Letter is a must.
Compliance Requirements to Meet
While liquidating a Dubai mainland company, the shareholders must check whether they have met all the mandatory compliance requirements such as,
- VAT deregistration
- Corporate Tax Final Return and Deregistration
- Economic Substance Regulation (ESR) obligations
- Ultimate Beneficial Owner (UBO) requirement
Frequently Asked Questions (FAQs):
What is voluntary liquidation?
Liquidation is the process by which the shareholders of a company decide to close down a company.
What are the common reasons for liquidation?
Business owners often decide to liquidate their company due to reasons such as debt, unfeasible operations, departure of the company founder, financial distress, adverse market conditions, loss of large contract or customer, company achieving its objective etc.
What are the different types of liquidation?
There are two types of liquidation in the UAE: voluntary liquidation and compulsory liquidation. Voluntary liquidation is initiated by the shareholders of the company. However, compulsory liquidation happens when a court issues an order to close down a company following a petition filed by a creditor.
Can I liquidate a company without a liquidator?
No. As per the UAE regulations, you need to appoint a company liquidator to wind up your company.
