Business Liquidation in Abudhabi
Company liquidation is a legal insolvency operation which involves winding up the business operations of an entity. Business liquidation includes numerous procedures, the major ones being the appointment of a liquidator, notifying government authorities and cancelling the business license.
The liquidation procedure is dependent on the ownership structure, the method of liquidation and the registration in jurisdictions. LLCs formed in the UAE must get their resolution certified by Notary Public. Cases wherein shareholders are not present in the country, this can be done at the relevant UAE embassy. The attestation must be done at the UAE Ministry of Foreign Affairs and Ministry of Justice.
Abu Dhabi Business Liquidation Process
- Hire a liquidator which also involves getting an acceptance letter from the liquidator appointed
- Publish a liquidation notice in a public journal, in English as well as Arabic
- File the resolution of the shareholders to the licensing authority that is in charge, along with the required documentation and fee
- Prepare the liquidation report(by the liquidator) following the completion of the notice period(applicable in certain cases)
- Send the final report along with the documents and the fee to the authority concerned.
The final stage involves the examination of the application by the authority and granting he ‘license cancellation certificate’, provided all the required documents have been provided and are accurate.
Company liquidation in Abu Dhabi- Documents required
- Copy of the license
- Copy of the Memorandum of Association (MOA), with any changes
- Power of Attorney, if any
- Copies of all shareholders’ passports
- Copy of your Emirates identification
- Resolution of the shareholders
- De-registration application form
We provide liquidation services for all entities – limited liability companies, free zone companies and offshore companies across Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, and Sharjah. We also assist in the preparation of Board resolution, power of attorney, audit report, liquidator’s statement etc., which are mandatory documents required for liquidation.
Liquidation services include:
- Appointment as liquidator
- Administer the liquidation process
- Supervise asset disposals
- Direct payments to creditors
- Liaise with liquidation accountants
- Process third party liquidation costs
- File de-registrations and other formal notifications
- Administer the complete documentation
- Supervise the ongoing and liquidation specific accounting requirements
Company Liquidation in Free zone
There are several free zones in the UAE, and each of them has its own set of rules and processes. Each emirate’s local government controls the free zone businesses there.
Three types of company liquidations can be seen in UAE free zones.
- Company liquidation
Most businesses choose this option if they have no obligations or if they can pay off all of their debts within six months and start with a declaration of solvency.
- Creditors’ liquidation
Creditors winding up occurs when a company adopts a decision to cease operations and has a meeting with its creditors thereafter.
According to UAE Commercial Transactions Law No. 18 of 1993, the court can commence the procedure.
HLB Abu Dhabi to Assist!
HLB Abu Dhabi is a recognized company liquidator that you may use if you wish to liquidate your free zone company.
We can assist you with the entire liquidation process and all related processes without any hassles, and we can assure you that the business liquidation process complies fully with UAE Company Law requirements.