Types of Company Liquidation:

1. Voluntary Liquidation: This is initiated by the shareholders of a company. Common reasons include the expiration of a fixed-term, the achievement of the company’s purpose, continuous business losses, or the inability to pay debts. Shareholders choose to dissolve the company to avoid further losses.

2. Compulsory Liquidation: This occurs when authorities force a company to liquidate due to legal violations or insolvency. Creditors may also file complaints, prompting regulatory authorities to initiate the liquidation process to recover debts.

How to Liquidate a Company in Dubai and the UAE

Liquidating a company requires hiring an approved liquidator. AARMAK, as a certified liquidator, can manage the liquidation process according to UAE company laws. Hiring a registered liquidator ensures compliance and helps avoid penalties.

Procedure for Liquidating a Limited Liability Company (LLC) in the UAE:

1. Board of Directors (BoD) Meeting: Draft minutes announcing the liquidation and appointment of a liquidator. This must be notarized.
2. Official Letter from the Liquidator: A letter from the liquidator accepting responsibility for the liquidation.
3. Application for Liquidation: Submission of a liquidation form and fees to the Department of Economic Development (DED).
4. Newspaper Advertisement: Announce the company’s dissolution in an Arabic newspaper.
5. 45-Day Notice Period: The DED provides a grace period for creditors to file claims.
6. Final Liquidator’s Report: Submission of the final audit report, confirming no claims from creditors.
7. Visa Cancellation: Cancel employee and partner visas and obtain clearance from the Ministry of Labour, Immigration, DEWA, and telecom providers.
8. Final Liquidation Certificate: After completing the above steps, DED will issue the final liquidation certificate.

Procedure for Liquidating a Free Zone Company (FZE) in the UAE:

1. BoD Meeting: Draft minutes announcing the liquidation and liquidator appointment. Notarization required.
2. Official Letter from the Liquidator: Confirmation from the liquidator.
3. Application for Liquidation: Submit the liquidation form and fees to the relevant Free Zone authority.
4. Newspaper Advertisement: Announce the company’s dissolution in an Arabic newspaper.
5. 45-Day Notice Period: Wait for creditors to claim during the grace period.
6. Final Liquidator’s Report: Submit the final audit report and confirm no claims from creditors.
7. Clearance Certificates: Obtain certificates from the Free Zone authority and related departments.
8. Visa Cancellation: Cancel visas and obtain clearance from relevant authorities.
9. Final Liquidation Certificate: Issued by the Free Zone authority upon completion.

Popular Free Zones We Serve:

• Dubai International Financial Center (DIFC)
• Dubai Multi Commodities Center (DMCC)
• Jebel Ali Free Zone (JAFZA)
• Abu Dhabi Twofour54 Free Zone
• Ajman Free Zone
• And more

DIFC-Approved Liquidators

AARMAK is recognized as one of the top liquidators in DIFC. Our experienced team manages the entire liquidation process, including document preparation, utility cancellations, obtaining clearance certificates, bank account closure, and filing the final liquidation report.

If your company is facing financial difficulties or insolvency, AARMAK’s expert liquidation services will ensure a hassle-free closure, protecting your interests and complying with all legal requirements.