UAE Free Zone Company Liquidation Requirements

Key requirements for free zone company liquidation include:

• Shareholders must prepare a board resolution to appoint a licensed liquidator.
• The company must have no liabilities or assets.
• All employee salaries and benefits must be settled.
• Visas issued under the company’s name must be cancelled.
• The company’s bank account must be closed.
• Any outstanding fees owed to the free zone authority must be cleared.
• Obtain the necessary clearances from relevant authorities.
• Newspaper advertisements must be placed if required by the free zone.
• The liquidator must confirm no remaining assets or liabilities and issue a final liquidation report.

Clearances for UAE Free Zone Company Liquidation

Before initiating the liquidation process, the following clearances must be obtained:

• Free Zone Authority Clearance Certificate
• Clearance Certificates from utility providers (e.g., DEWA, Etisalat, Du)
• Immigration Clearance
• Customs Department Clearance
• Clearance from Regulatory Authorities overseeing any specific activities
• Bank Account Closure Letter

Process of Free Zone Company Liquidation in the UAE

The steps involved in free zone company liquidation are as follows:

1. Board Resolution: Shareholders pass a resolution to liquidate the company and appoint an approved liquidator.
2. Liquidator Appointment: The liquidator sends a letter to the free zone authority accepting the responsibility for the liquidation.
3. Newspaper Advertisement: A public notice of the liquidation is placed in a newspaper (if required by the free zone).
4. Notice Period: A lock-in period follows the public announcement, allowing creditors or other parties to raise claims.
5. Clearance Submission: All necessary clearance certificates are submitted to the free zone authority.
6. Close Books of Accounts: The company's financial books are closed, showing zero assets and liabilities, and presented to the liquidator.
7. Compliance Requirements: De-register from taxes such as VAT, Excise, and Corporate Tax. Ensure compliance with AML regulations and final ESR submissions.
8. Final Liquidation Report: The liquidator submits the final report to the free zone authority.
9. License Cancellation: The free zone authority cancels the company’s trade license and removes its name from the register.
10. Maintain UBO Register: The Ultimate Beneficial Owner (UBO) register must be kept for five years post-cancellation.

AARMAK’s Free Zone Liquidation Services in the UAE

AARMAK offers comprehensive liquidation services for free zone companies, including:

• Drafting required documents
• Assisting in preparing board resolutions
• Drafting the liquidator’s acceptance letter
• Submitting liquidation applications to the free zone authority
• Placing liquidation notices in newspapers
• Assisting in obtaining clearance letters
• Auditing financial statements for liquidation purposes
• Preparing the final liquidation report

Documents Required for Free Zone Company Liquidation

• Bank Closure Letter and final bank statement
• Clearance Letters from Dewa, Etisalat/Du, rent provider, PO Box, etc.
• Trial Balance and supporting transaction documents
• NIL Assets and NIL Liabilities confirmation
• Customs No Objection Letter (for trading companies)

Why Hire AARMAK for Free Zone Company Liquidation?

• Extensive experience in the UAE liquidation process
• Deep understanding of UAE laws and free zone regulations
• Independent and impartial services
• Approved by all UAE free zones
• Over 20 years of experience in auditing and liquidation