Liquidation of LLC company in UAE
When an individual decides to close a company in UAE, It’s important to cancel the business trade license and all the permits associated with it.
This way you will inform the government that your business is no longer available so that fines and penalties should not be piled up at the time of trade license renewal.
If the trade license is a limited liability company as a shareholder, it’s important to release your liabilities towards the creditor and the partner to protect the shares and interests.
Liquidating a trade license will be the best decision for near future if you again want to start a new business it creates a goodwill and business reputation.
Formalities for cancelling Limited Liability Company:
The LLC license liquidation is a long process as it requires liquidating the shares, Collecting the debts and paying the creditor before finalizing from DED “Dubai economic department”
The Liquidation process will start when shareholders decide to shut down the business activity a resolution must be passed to start with the liquidation process, and it is carried by a liquidator which must be appointed for a limited time period.
We will mention below step by step guide for company liquidation in UAE
- Prepare a notarized minute of the general assembly confirming the company liquidation and the appointment letter from the liquidator.
- Arrange an official letter from the registered liquidator accepting the duties.
- Fill in the cancellation letter required from DED or other approval channels.
- Liquidation certificate will be issued by DED.
- Publish the notification in Arabic as well as English newspapers for 45 days which will give a notice period to the debtor too clear the claims.
- A declaration letter from the liquidator and the partners indicating no objection from any other parties during the grace period and it must submit to DED.
- Collect required approvals of other government bodies for licence cancellation.
- Cancelling the firm card from the ministry of human resources and emiratisation.
- Visas for the foreign partners must be cancelled which are sponsored by the company at the respective General Directorate of Residency & Foreign Affairs.
- Final cancellation also needs an approval after submitting the above documents.
- Pay the charges or fees which will be determined by DED.
- Certification of Cancellation will be received upon paying the requested fees.
Want to liquidate your company please feel free to:
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