If a person decides to close a business in the UAE, it is important to cancel the business trade licence and all associated permits. By doing so, the government will be notified that your business is no longer available, preventing fines and penalties from piling up when it comes time to renew your trade licence.
As a shareholder in a limited liability company, you should release your liabilities towards creditors and partners to protect share and interest ownership.When you want to start a new business in the near future, liquidating your trade licence is the best option since it creates goodwill and enhances your business reputation.
Limited Liability Company cancellation formalities:
Before finalizing the LLC licence liquidation from Dubai Economic Department (DED), shares have to be liquidated, debts collected, and creditors paid.
In order to initiate the liquidation process, a shareholder resolution must be passed, and it must be carried out by a liquidator appointed for a limited time.
Here is a step-by-step guide for liquidating a company in the UAE
Step 1: Whether you are a Private Joint Stock Company, General Partnership, Public Joint Stock Company, Limited Liability Company, or Simple Limited Partnership, you need a liquidator who will handle the liquidation process and represent you in court.
Step 2: The business licence must be submitted along with all cancellation forms. A certificate of liquidation will be issued to the company at this point by the Department of Economic Development. In the following 45 days, the company must publish a notice of liquidation and the debtors must submit their claims.
Step 3: In addition to canceling the business, firm cards, partnerships, and visas sponsored by the company must also be canceled. For a deregistration certificate, all pending utility and telecommunication bills must be paid off, a bank account closure letter must be obtained, a resolution by shareholders in agreement to dissolve the business must be witnessed by a public notary, and any DED fees must be paid.
You’ll find various groups of entities in Dubai, such as simple limited partnerships, public and private joint stock companies, limited liability companies, and partnerships. All of these processes have to be completed in case of liquidation requirements, such as publishing news of liquidation, formalities in company insolvency, clearance certificates from all stakeholders and DED, or even visa cancellation if necessary.
How much does liquidation of a company approximately cost?
Registrars charge fees ranging from AED 1500 to AED 50,000 for liquidations and deregistrations. Some of these are negotiable. If you choose to use a company liquidation service in Dubai, it will depend on what you are looking for.
Are liquidation services needed for LLCs?
All types of companies can liquidate. In order to liquidate an LLC company, arrange for a registered liquidator to issue an official letter accepting the duties. By completing the required form, you can request cancellation through DED or other approved channels. The DED will issue a liquidation certificate. The liquidation notice should be published in two newspapers in two different locations.
Are you looking for services for Liquidation of an LLC in DMCC?
If you have decided to wind up your company in Dubai, you’ve to make sure you hire an efficient company for the liquidation of an LLC in DMCC. Probity is one of the most reliable, trustworthy service providers that not only deals in company formation, but also in the services for liquidation of an LLC in DMCC.
Looking for a reputable and reliable company to help you liquidate your LLC in DMCC? Contact us today!