Liquidating a firm refers to doing so or planning to do so. Liquidating a firm refers to doing so or planning to do so. The assets of a firm are divided among the shareholders when it decides to discontinue operating or carrying out certain projects in a certain location. The trade licence of a firm must also be revoked due to its liquidation. You can always take assistance from a licensed provider for company liquidation in Dubai.
Liquidation occurs if a registered company lacks the money to carry out daily operations, pay creditors, or if it has deliberately or unknowingly committed a significant infraction and a relevant lawsuit has been filed by any regulatory government authority or agency in that nation. This liquidation may be required or even decided upon voluntarily by the shareholders.
One must apply for licence cancellation at any Dubai Economic Department (DED) certified office in order to close a solitary establishment there.
Important conditions for closing the Sole Establishment in Dubai Mainland
Here are the prerequisites:
- You must first fill out an application for registration and licencing.
- You will also need a copy of your business licence.
- After that, you must ensure that the Ministry of Human Resources and Emiratisation has cancelled your labour cards.
- If the licensee is a non-GCC national, the resident visa must be cancelled, or documentation demonstrating that the revoked licence does not support the visa must be provided.
- Next, you need to arrange to advertise in local newspapers to share the news of liquidation within the waiting period, preferably in an Arabic national newspaper.
- Transaction fees of 1020(including advertisement) to be paid to DED.
How to Close Down A Professional Company in Dubai
You need to create a resolution board urging all partners to dissolve the business. The resolution must be validated by court procedures. The process will cost about 800 AED and take a day.
1) A liquidator must be chosen by the board and must be stated in the resolution.
2) Apply to the Department of Economic Department for a preliminary or initial licence cancellation which will cost around AED 2010 in total.
3) Visas, establishment cards, labour cards, and other documents should be cancelled.
4) If the business has been operating for less than two years, you need to create an audit report.
5) Ads in newspapers will cost around AED 1500.
6) You also need to ensure the clearing and closing of bank accounts.
What Happens If The Company Is Not Closed?
If you don't actually work for the firm in Dubai, there may be a number of good reasons to liquidate it. There are ethical and legal requirements associated with this. The difficulties that could occur when you leave the country without terminating your business. These are what they are:
Liquidation of Dubai's free zone company
However, the free zone businesses are independently based in Dubai's mainland, and their information systems are connected to those of the departments of immigration and other government agencies as well as other outside parties. The Security Department and CID under Immigration will often receive your Personal Information for analysis of your personal background. The nation's strong national motto is "national development in a clean environment." The candidate may be accepted or rejected at any time by the Immigration Security Department. You can start a business in Dubai's free zone if the security agency gives its approval. Your security file might be impacted if the legal processes are unsuccessfully completed by you. That’s why the experts recommended liquidating your business.
Liquidation of Offshore businesses
Since these companies would become a doormat from the active list of registered firms, offshore company dissolution is not required if you don't want to run a business. The offshore corporation, in contrast to other legal bodies, follows the identical closing procedures whether it is located in Dubai or another emirate.
The procedures needed to close offshore businesses-
1)Partners should draft the Board resolution.
2)Show the audit report
3)Application and resolution of the registered agent
4)Make Payment.
Final Words
Get in touch with one of our expert consultants to proceed with the appropriate company liquidation services in Dubai or in the UAE. We help businesses in the UAE in both Mainland and free zones.
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