Process of Company Liquidation in ADGM

The ADGM authority outlines a clear process for liquidating companies. Business owners must follow these steps to ensure smooth closure:

1. Declaration of Solvency: Signed by shareholders and submitted to ADGM.
2. Board Resolution: Pass a resolution to liquidate the company and submit it.
3. Appoint Liquidator: Select an ADGM-approved liquidator and submit their acceptance letter.
4. Terminate Lease: End any active leases.
5. Visa Cancellations: Cancel all visas under the company’s sponsorship.
6. Establishment Card: Cancel the company’s establishment card.
7. Return Original Documents: Return licenses, registration certificates, Memorandum of Association (MoA), and share certificates.
8. Bank Account Closure: Submit a closure letter.
9. Clearance Letters: Obtain No Objection Certificates (NOCs) from Abu Dhabi Customs, Abu Dhabi Distribution Co (ADDC), and Etisalat/Du.
10. Advertisement: Publish a notice in an English newspaper for three days. Allow a 21-day notice period for creditors to file claims.
11. Final Liquidation Report: Submit the report to ADGM.
12. Company Strike-Off: ADGM registrar removes the company from the register.
13. Trade License Cancellation: ADGM cancels the trade license.

Compliance Requirements for ADGM Liquidation

Voluntary liquidation in ADGM can become more complex if the following compliance requirements are not met:

• VAT Deregistration: Apply for deregistration if the company is VAT-registered.
• Beneficiary Register: Submit the Real Beneficiary and Shareholder Registers within 30 days of the liquidator's appointment.
• Record Maintenance: Ensure that the liquidator maintains company registers for five years post-liquidation.
• Economic Substance Regulation (ESR): Ensure that ESR obligations are fulfilled.

Services Offered by ADGM-Approved Liquidators

AARMAK provides comprehensive services for ADGM company liquidation, including:

• Drafting Board Resolutions and Shareholder Resolutions.
• Legalizing documents required for liquidation.
• Drafting Powers of Attorney, as needed.
• Auditing financial statements for liquidation.
• Preparing the liquidation report for ADGM companies.
• Publishing liquidation advertisements.
• Cancelling the company’s establishment and labor cards.
• Cancelling visas and work permits.
• Securing the final liquidation certificate.

Hire ADGM-Approved Company Liquidators

The voluntary liquidation process in ADGM can be intricate, but hiring ADGM-listed liquidators simplifies the task. AARMAK, recognized as one of the top ADGM liquidators, ensures a smooth and compliant liquidation process. With extensive experience in liquidating both mainland and free zone companies across the UAE, AARMAK can help you complete your company’s liquidation quickly and efficiently.