Company Liquidation in Dubai, UAE in 2022

company liquidation in Dubai

This article will significantly look at Company Liquidation in Dubai with DDA (Dubai Development Authority).

Dubai Development Authority is a central authority that plays a vital role in developing Dubai’s economy because the authority sets global standards for real estate building, urban planning, and business services.

DDA Dubai is committed to developing an environment that is business-friendly and helps companies grow exponentially. DDA takes care of all Freezone company set up in Dubai and the following are the processes:

  1. Firstly, planning of real estate and growth
  2. Secondly, issuing licenses for the services by which the authority governs the projects and industries coming under its jurisdiction.
  3. Lastly, the development of industries

Company Liquidation in Dubai with DDA

The process of Company Liquidation with DDA (Dubai Development Authority) is as under:

1) Sending a Notice to the Dubai Development Authority:

Before closing the company, you must submit a notice to the Dubai Development Authority. The notice must contain the reason for the closure of your company. Furthermore, you must provide the notice one month before the company liquidation in Dubai; otherwise, the penalty will be applied as per the lease agreement.

2) Attesting the Board Resolution:

In case there are multiple shareholders, the company needs to present a board resolution for the company’s deregistration. It must be attested in front of executives of a free zone. If the shareholder is not residing in UAE, then the resolution should be notarized from the UAE embassy of the country where the shareholders belong. The Ministry of Foreign Affairs must also attest to it, UAE.

3) Submitting Back the Office Key:

The company must submit the office keys to the Dubai Development Authority as they won’t be allowed to use the office space. The lease agreement for the office is also canceled.

4) Announcement of Company Liquidation in Dubai:

The company needs to provide the word about the company liquidation in Dubai by announcing it through two local newspapers. Consider printing the news in both English and Arabic.

5) Submission of Original Documents:

The original documents such as license, company formation certificate, lease agreement, additional activities license, permits, etc., must be submitted back to the Dubai Development Authority. These documents will no longer be valid after you submit the liquidation request.

6) Clearance from Authorities:

Before the completion of the LLC Company formation in Dubai and the liquidation process, it is necessary to pass clearance from the following authorities:

  1. Dubai Customs Department
  2. DDA Finance Department
  3. Etisalat Clearance. (If Required)
  4. DDA IT Section
  5. DDA Government Services Department
  6. Facilities Management Clearance

Further, the authorities check the company for dues and frauds. Only after these authorities provide clearance closure of the company is possible.

7) Liquidation Report:

In particular, an integral part of company liquidation in Dubai is a liquidation report. As per the Dubai Development Authority’s regulations, you need to prepare a liquidation report that has information related to the company’s finances at the time of closure. Therefore, a registered auditor must conduct this exercise.

The process is easy to comprehend and understand if understood by Companies having expertise in business setup services in Dubai. Such services can be easily rendered from us at NR Doshi & Partners. We also have our Accounting & Auditing expertise in LLC Company formation in Dubai.

FAQs of Company Liquidation in Dubai

1. What is liquidation?

When a company wishes to wind up the business due to certain factors, the complete closing down process is known as company liquidation. In the process, one needs to sell out its assets to pay the debts as well as share of the shareholders. The business setup services in Dubai may differ, depending on the company structure.

2. How many days will it take for the complete liquidation of the company present in the Dubai Development Authority?

It will certainly take around 10-12 days for the initial approval and 2-3 days to get the company deregistration certificate.

3. What steps do companies need to take before the liquidation process in Dubai with DDA?

The companies must take the following steps before performing the liquidation process:
1) Paying all the remaining utility bills
2) Settling down the telecommunication bills
3) Closing of the bank accounts
4) Preparation of the financial audit report
5) Lastly, visa cancellation under the license

4. What are the basic requirements for company liquidation in Dubai with DDA?

Following are the basic requirements for company liquidation in Dubai Development Authority:
1) The board’s resolution approving the company liquidation.
2) Employee visas must be canceled
3) A liquidation letter is required to be submitted to DDA approved auditors
4) One needs to obtain a clearance certificate from the free zone authority
5) No objection certificate from the parent unit of the company
6) Lastly, one needs to obtain a clearance certificate from the Commercial Licensing Division Government section

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