Jebel Ali Free Zone Authority (JAFZA) is the only option for investors seeking to open an offshore company in Dubai. Directors or shareholders of a Dubai-based JAFZA offshore company can wind up its operations by opting for the voluntary liquidation process.
Jitendra Chartered Accountants (JCA) is a company liquidator approved by the JAFZA Authority in Dubai. We have years of experience in liquidating offshore companies incorporated in JAFZA.
JAFZA Approved Liquidators
The appointment of a liquidator is a mandatory requirement for winding up an offshore company in JAFZA. An audit firm licensed to carry out company liquidations in the UAE can be appointed as a liquidator for your JAFZA offshore entity. JCA is an audit firm and company liquidator, approved by all the offshore authorities including JAFZA.
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Process of JAFZA Offshore Liquidation
Resolution for Liquidation & Appointment of Liquidator: A board resolution must be passed by the shareholders or directors to wind up the company and appoint a liquidator. The resolution must be signed by all the directors and must be submitted to the Registrar through your registered Tax Agent.
Liquidator’s Letter of Confirmation: The appointed liquidator must send a letter to the Registrar confirming his willingness to function as the liquidator for the client.
Maintenance of Real Beneficiary Register: Before liquidation, the JAFZA offshore companies must hand over their Real Beneficiary Register (RBR), Partners and Shareholders Register (PSR) to the Registrar within 30 days from the date of the liquidator’s appointment.
The liquidators must also maintain those Registers for at least five years from the date of liquidation. Violations of these requirements are subject to hefty penalties.
Economic Substance Filing Requirements: A JAFZA offshore company under liquidation must fulfil its Economic Substance Regulation (ESR) obligations such as:
- Filing ESR Notification
- Filing ESR Report
- Meeting the ESR Test
Corporate Tax Obligations: A final corporate tax return must be filed and a deregistration application must be submitted
Transfer of Business Assets / Intellectual Property: If the company has any Business Assets / intellectual property assets including real estate property, transfer them to relevant persons before applying for the liquidation process.
Closing of Bank Account: Companies holding any bank account must close it and submit the account closure letter while liquidating the company.
Newspaper Advertisement: An advertisement for the company’s liquidation will be done by the JAFZA after the submission of the liquidator’s report.
Completion of Voluntary Liquidation: When the liquidation is completed, your liquidator will submit the final liquidation report to the Registrar
Removal of Name: Upon receiving the final liquidation report of the JAFZA offshore company, the Registrar will remove its name from the Register.
Our Role in JAFZA Offshore Company Winding Up
JCA’s Offshore company liquidation services include:
- Drafting of documents
- Preparation of board resolution
- Drafting the liquidator’s letter of acceptance
- Assistance for obtaining necessary clearances
- Audit of financial statements for liquidation
- Maintenance of RBR and PSR
- Preparation of the final liquidation report
Documents required for Offshore Company liquidation
- Bank account closure letter
- Clearance letter from the JAFZA Authority
- NIL Assets and NIL liabilities to ensure
- RBR & PSR handover to ensure
Why Hire JCA’s Offshore Company Liquidation Services?
- Experience in UAE company liquidation
- Expertise in liquidation rules and regulations
- Knowledge of JAFZA rules and regulations
- Independence and impartiality
- Approved by all the free zones and mainland authorities in the UAE
- More than two decades of practice in the UAE
Frequently Asked Questions
What are the major causes of liquidation in the UAE?
Some of the reasons for company liquidation include economic downturn, increasing competition, a change in consumer behaviour, mismanagement, death of the founder, the company achieving its objective etc.
What are the different types of company liquidation?
- Voluntary Liquidation: The shareholders or directors decide to close the company through a board resolution
- Compulsory Liquidation: Liquidation of a company in the UAE through a court order