The liquidation of a company in the UAE involves closing down operations, settling financial obligations, and ensuring compliance with local laws. Whether due to business restructuring, financial difficulties, or strategic decisions, the liquidation process requires careful planning, adherence to regulations, and expert guidance. Our liquidation services in the UAE are designed to ensure a smooth, hassle-free process, helping businesses meet their legal obligations while minimizing risk.

Company liquidation refers to the legal process of closing down a business and distributing its assets to settle debts and liabilities. Once a company is liquidated, it ceases to exist, and its registration is officially canceled. In the UAE, companies may undergo voluntary or compulsory liquidation depending on the circumstances, and each type requires different procedures to be followed.

1. Voluntary Liquidation

• Shareholders' Decision: In voluntary liquidation, the company’s shareholders or owners decide to close the business, usually when it is solvent but no longer needed.
• Orderly Wind Down: Voluntary liquidation involves settling outstanding debts, selling off assets, and distributing the remaining funds to shareholders in an organized manner.
• Compliance with Local Laws: The process includes notifying relevant UAE authorities, canceling licenses, and deregistering the business from governmental bodies like the Ministry of Economy, Municipality, and Tax Authority.

2. Compulsory Liquidation

• Court-Ordered Liquidation: Compulsory liquidation occurs when a court orders the dissolution of a company, usually initiated by creditors when a company is unable to pay its debts.
• Debt Recovery Process: In this case, the company’s assets are sold off to pay creditors, and the company is forced to shut down. This process involves close legal supervision and more complex regulatory procedures.
• Legal and Financial Obligations The process must comply with UAE regulations regarding creditor notification, debt settlements, and legal filings.

1. Liquidator Appointment and Representation

• Official Liquidator Services: We serve as your appointed liquidator, managing the entire liquidation process from start to finish in accordance with UAE regulations.
• Legal Representation: We represent your company before regulatory bodies, creditors, and any relevant authorities during the liquidation process.
• Liaison with Authorities: Manage communication with government bodies such as the Department of Economic Development (DED), free zone authorities, tax departments, and other relevant parties.

2. Financial and Legal Closure

• Final Audits and Financial Statements: We assist in preparing final audited financial statements and ensuring all outstanding financial obligations are met before the company is dissolved.
• Settlement of Liabilities: Facilitate the settlement of debts, outstanding invoices, employee salaries, and end-of-service benefits.
• Asset Distribution: Manage the sale of company assets and ensure proper distribution to creditors, shareholders, or stakeholders as per legal requirements.

3. Compliance with Legal Requirements

• License Cancellation: Assist with the cancellation of business licenses and permits across free zones, mainland, or offshore jurisdictions.
• VAT and Tax Deregistration: Ensure the company is deregistered from the Federal Tax Authority (FTA) and all VAT filings are complete.
• Regulatory Filings and Notifications: Handle all mandatory regulatory filings and notifications, including company deregistration with government departments.

4. Employee Settlements and Termination

• Employee Visa Cancellation: : Manage the process of cancelling employee visas, labour contracts, and ensuring employees are compensated as per UAE labour laws.
• End of Service Benefits: Ensure that all outstanding wages, benefits, and dues to employees are paid before the final closure of the company.
• Staff Settlements: : Facilitate smooth settlements with staff, ensuring compliance with the UAE Ministry of Human Resources and Emiratisation (MOHRE) requirements.

5. Winding Down and Record Keeping

• Business Wind-Down Management: Provide guidance on closing bank accounts, utility connections, and other business-related services.
• Final Records and Reports: Ensure all final reports and documentation are properly submitted and archived, meeting all legal obligations for company closure.