Company Formation Dubai

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Company Liquidation in Dubai

Updated on Wednesday 29th June 2016

Rate this article
5 5 1
based on 0 reviews


Company-liquidaiton-in-DubaiWith Dubai and Abu Dhabi at the forefront, the UAE has become a regional business center. However, in certain cases companies can face difficult financial situations or the shareholders decide to take their business elsewhere. This calls for the company liquidation proceedings to be initiated. This procedure will depend on the company’s financial status at the moment of the commencement of the process. Company liquidation in Dubai can also be referred to as trade license cancellation in case the owners decide to shut down their operation in the Emirate.

Types of company liquidation in Dubai

As mentioned above, a Dubai company can be dissolved voluntarily or when it can no longer pay its debts. The Company Law provides for two types of company dissolution procedures in Dubai:

  • -          voluntary liquidation;
  • -          compulsory liquidation.

Our company formation agents in Dubai can offer more information about company liquidation procedures under the Commercial Law.

The company dissolution procedure in Dubai

Voluntary or compulsory company liquidation can be requested by the shareholders or the creditors in Dubai. The shareholders will hold a meeting during which a resolution must be passed for the procedure to begin, in the case of voluntary dissolution. During the same meeting a liquidator must be appointed. In the case of compulsory liquidation, the procedure will begin by court order.

The company’s legal representatives will be required to file the following documents with the Dubai Trade Register:

  • -          the document stating the dissolution of the company and the appointment of the liquidator;
  • -          a certified copy with the signatures of the company’s directors and liquidator attesting to the liquidation;
  • -          the company’s certificate of registration and its trade license;
  • -          a copy after the liquidator’s license accompanied by a letter stating the approval of the liquidation.

A key aspect no matter the type of company liquidation procedure is that the Dubai company must append the terms ‘in liquidation’ to its trade name.

Trade license cancellation in Dubai

Once the company winding up process is begun, the business must also be erased from the Dubai Trade Register and have its commercial license revoked. The following documents will be filed in order to complete this process:

  • -          the final account related to the assets liquidated during the process approved by the shareholders or by the liquidator;
  • -          a no-objection letter stating the approval of the cancellation of the license issued by the Ministry of Labor;
  • -          the statement on the company dissolution and nomination of the liquidator;
  • -          a visa revocation for foreign partners, in case they were sponsored by an UAE national.

For assistance with the company liquidation procedure, do not hesitate to contact our representatives in Dubai.

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Dubai

Call us now at 0031765870401 to set up an appointment with our specialists in company formation in Dubai,  United Arab Emirates.

UAE free zones.png

24h.png

free evaluation.png

 

Tax Calculator

tax-calculator-dubai

Testimonials

Francesco-Dagnino.jpg

Bridgewest international network takes great care of selecting its affiliates worldwide and their local partners from Dubai are no exception.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

Client Reviews

Excellent Services! Finally understood the differences between the types of Free Zones and offshore companies in UAE. Recommend! See more reviews Add your review!

We recommend ClientPedia

This website is marketed by ClientPedia

banner Clientpedia.jpg