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Company Liquidation in the UAE – Simply Solved

Company liquidation in the UAE mainland is a structured process that requires strict adherence to legal procedures. This guide provides a detailed overview of company liquidation services for Limited Liability Companies (LLCs) in Dubai mainland, including the steps involved, necessary documentation, and timelines.

What is Company Liquidation?

Company liquidation is the formal process of closing down a business, where all its assets are sold to settle liabilities. This process ends with the dissolution of the company's legal identity.

Steps for Liquidating an LLC in Dubai Mainland

1. Passing a Resolution for Dissolution

The first step in liquidating a company is for all partners to pass a resolution of dissolution. Here's what this entails:

  • Partner Agreement: All partners must attend a notary public and agree to the liquidation by signing the resolution. If partners are unavailable in the UAE:
    • Power of Attorney (POA): The absent partner(s) must create a POA in their home country.
    • Attestations: The POA must be attested by the UAE Embassy in their country, followed by the Ministry of Foreign Affairs (MOFA) in the UAE. It should then undergo legal translation to Arabic and be attested by the Ministry of Justice.

Once this is complete, the POA holder and the available partners can sign the resolution at the notary public.

2. Document Submission to the Economic Department

After the resolution is notarized, several documents must be prepared and submitted to the Department of Economic Development (DED):

  • Notarized resolution of dissolution.
  • Trade license copy (all pages).
  • Passport copies of all partners.
  • Liquidator appointment letter.

These documents are then forwarded to the legal department by the DED. If there are no legal liabilities, a liquidation certificate is issued.

3. Public Notice of Liquidation

The next step involves announcing the liquidation in two local newspapers. Key details include:

  • Notice Period: A 45-day notice period is mandated, allowing creditors or parties with claims against the company to come forward.

During this period, the company must complete additional legal formalities.

Clearances Required for Liquidation

1. Employee and Labor Clearance

  • Ensure that all employee contracts are cleared and canceled with the Ministry of Human Resources and Emiratisation (MOHRE).

2. Immigration Clearance

  • Cancel the company’s immigration file and any associated visas.

3. Tenancy Clearance

  • Obtain clearance from the landlord by resolving any pending obligations in the tenancy contract.

4. Bank Account Closure

  • Clear all liabilities with the bank and officially close the company’s account.

5. Customs Clearance

  • If applicable, ensure there are no outstanding customs-related liabilities.

6. Vehicle Clearance

  • Cancel or transfer ownership of vehicles registered under the company and get clearance from the Roads and Transport Authority (RTA).

7. VAT Deregistration

  • Apply for VAT deregistration with the Federal Tax Authority (FTA) and settle any pending taxes.

Final Submission to the Economic Department

Once all clearances are obtained, the following documents must be submitted to the DED:

  • Original resolution.
  • Newspaper advertisement proof.
  • Labor and immigration clearances.
  • Liquidator’s final report.
  • All other clearance letters.

The DED reviews the documents and issues a final cancellation certificate, removing the company’s name from the commercial register.

Timeline for Liquidation

The entire process typically takes 60 working days, broken down as follows:

  • 45 days for newspaper advertisement.
  • 15 days for documentation and submission processes.

Why Choose Professional Assistance?

The liquidation process involves multiple legal, administrative, and procedural steps. Errors or omissions can delay the process significantly. Partnering with experienced service providers, like Simply Solved, ensures:

  • Compliance with UAE regulations.
  • Hassle-free handling of documentation.
  • Timely completion of all formalities.

Conclusion

Liquidating an LLC in Dubai mainland requires meticulous planning, legal expertise, and adherence to regulatory requirements. By understanding the process and seeking professional support, you can ensure a smooth and efficient closure of your business.

 


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