What is Liquidation process in Dubai, UAE (winding up operations, license cancellation in Dubai, finishing up business in UAE) a Company in Dubai,UAE
Liquidation is the method by that a LLC company (or a part of a company), sole establishment, Dubai free zone company or institution closes its operation and therefore the assets and property of the corporate or institution is distributed to creditors and shareholders (owners) of the UAE registered Company. Liquidation is additionally known or noted as winding-up or dissolution, though dissolution theoretically refers to the ultimate steps of liquidation method. The liquidation of company in Dubai, UAE becomes inevitable when a corporation don’t have liquid funds to hold on day to day transaction of the corporate, creditors aren't being paid or company commits some serious offense, and a regulatory authority or agency in a very country accountable for the relevant sector files a suit for the effecting the operations of the corporate
Liquidation could either be compulsory (sometimes noted as a creditors' liquidation) or voluntary (sometimes noted as a shareholders' liquidation, though some voluntary liquidations are controlled by the creditors).
Following are procedures and documents details that are required and presented to Dubai Economic Department or Economic Departments in other emirates or Free Zones Authorities in Dubai.
Requirements of Cancellation for corporations in Free Zones like JAFZA, DMCC, JLT, TECOM, DAFZA, Hamriyah, RAK, DSO, Dubai SME,
- Resolution from Board for liquidating the corporate and appointment of liquidator
- Immigration and labour departments clearance from free zone authority. All Visas ought to be cancelled and cleared.
- Liquidation letter by registered auditor for FZE & FZCO solely to be submitted
- All fees and charges are to be settled with the free zone.
- Clearance Certificate from free zone authority (For corporations transferred from free zone) to be submitted.
- Clearance Certificate from Business Unite (NOC).
- Clearance Certificate from CLD Government section
- Original License
Above mentioned procedures and necessities are common in the majority the free zones of UAE, However, necessities are continuously changing and might vary from one free zone to the opposite.
- Get Registration & Licensing Application type (Form No. BR/1) from Economic department of the Emirate.
- Bring Company’s Original License and different legal documents.
- Letter (Release letter) from the owner in favor of the licensees apart from GCC nationals.
- Apply and find No-objection letters from (Bank, DEWA, FEWA, DU/ETISALATE, ministry of labor & immigration and RTA)
- Shareholders resolution to dissolve the businesses from the P-public Notary (for L.L.C companies)
- Company Dissolution letter from the house owners.
- Get NOC letter from Parent Company
- Bring with you Original License.
- Bring Original Certificate of Registration within the industrial Register (if the pinnacle workplace is registered in Dubai).
- Apply and find No-objection letter from (Bank, DEWA, FEWA, DU/ETISALATE, ministry of labor & immigration and RTA)
- Notice of company’s dissolution & Appointment of company’s legal liquidators (Approval from Legal Department)
- Get Registration & Licensing Application type from Economic Department of the Emirate within which company is registered
- Copies of official documents showing dissolution of the corporate and correct appointment of a legal liquidator and mentioning his/her name and determining the strategy of liquidation. this could either be by a resolution of the company’s shareholders or board of shareholders duly notarized or by court order.
- Certified copies of the signatures of company director(s), and therefore the company’s appointed legal liquidator, because the case could also be, legitimated by the Notary Public.
- Original Certificate of Registration within the industrial Register + the first trade license.
- Copies of the skilled license of the liquidator and Certificate of No liability by auditor and letter from the liquidator approving the liquidation of the corporate.
- Certificates issued within the different Emirates indicating cancellation of license(s) (if any).
- Original copy of the ultimate accounts of liquidation approved by the partners or general assembly and stamped by the legal liquidator.
- No-objection letter regarding cancellation issued by the Ministry of Labour & Social Affairs.
- Visa Cancellation of the partner(s) in case they're sponsored by their license.
- Copy of the notice of the company’s dissolution & appointment of a liquidator to be printed in 2 of the native newspapers.
- Letters from the partners for the agreement of the liquidation of the corporate.
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