Liquidation in Dubai Mainland

Liquidation Services in Dubai Mainland

Voluntary liquidation is the formal process where a mainland company in Dubai is closed down. It involves canceling the company’s trade license, visas, and permits, and requires the appointment of an approved liquidator in the UAE.

A company operating in the Dubai mainland can only be liquidated through the appointment of a qualified liquidator. AARMAK, a trusted audit and accounting firm, provides professional company liquidation services in compliance with UAE laws, ensuring a smooth process for business owners.

Why Choose AARMAK as Your Liquidator?

At AARMAK, we understand the complexities of closing down a business. With 20 years of experience, our team is well-versed in UAE regulations and offers expert guidance to help clients wind up their companies efficiently and without hassle. AARMAK is licensed and approved by Dubai’s mainland authorities, making us the ideal partner for your company liquidation needs.

Key Steps in Dubai Mainland Company Liquidation

The liquidation process in Dubai follows these essential steps:

  1. Board Resolution: Shareholders must pass and attest a resolution to liquidate the company.
  2. Appoint a Liquidator: An AARMAK-approved liquidator is appointed, and a letter of acceptance is provided.
  3. Initial Approval: Submit the liquidation resolution and obtain initial approval from the Department of Economy and Tourism (DET), formerly DED.
  4. Public Announcement: Publish a notice of liquidation in two local Arabic newspapers, allowing a 45-day period for third-party claims.
  5. Declaration of No Objection: Shareholders provide a statement confirming no objections have been raised.
  6. Final Liquidation Report: The liquidator prepares the final report and liquidation certificate, which is submitted to DET.
  7. License Cancellation: Secure the required approvals to cancel the trade license.
  8. Visa and Establishment Card Cancellation: Officially cancel the company’s establishment card and visas.

AARMAK’s Company Liquidation Services

AARMAK’s liquidation services ensure compliance with the necessary regulations and requirements. Our services include:

  • Drafting all liquidation-related documents
  • Preparing the board resolution and liquidator’s acceptance letter
  • Submitting the liquidation application to the DET
  • Publishing liquidation notices in local newspapers
  • Assisting with clearance letters (e.g., Dewa, Etisalat/Du, rent, PO Box)
  • Auditing financial statements for liquidation purposes
  • Preparing the final liquidation audit report

Additional Documents Required

  • Bank Closure Letter: Including a bank statement showing transactions until closure.
  • Clearance Letters: From Dewa, Etisalat/Du, rent provider, PO Box, etc.
  • Customs No Objection Certificate: If the company was involved in trading.
  • Trial Balance and Supporting Documents: For all transactions audited.
  • NIL Assets and Liabilities: Ensuring the company holds no remaining assets or liabilities.

Compliance Requirements for Liquidation

When liquidating a Dubai mainland company, shareholders must meet the following compliance requirements:

  • VAT Deregistration: File the final VAT return and apply for deregistration.
  • Corporate Tax Compliance: Submit the final tax return and complete deregistration.
  • Economic Substance Regulation (ESR): Ensure all ESR obligations are fulfilled.
  • Ultimate Beneficial Owner (UBO) Requirement: Adhere to UBO-related regulations.
What is voluntary liquidation?
Voluntary liquidation is when a company’s shareholders decide to close down the business and appoint a liquidator to manage the process.
What are the reasons for liquidation?
Companies often liquidate due to financial distress, unfeasible operations, market conditions, the departure of founders, or after achieving business objectives.
What are the different types of liquidation?
There are two types of liquidation in the UAE:
1. Voluntary Liquidation: Initiated by shareholders.
2. Compulsory Liquidation: Ordered by the court following a creditor's petition.
Is a liquidator mandatory for liquidation?
Yes, UAE regulations require the appointment of a licensed company liquidator to oversee the process.
AARMAK, with 20 years in Dubai, offers expert auditing, accounting, taxation, AML consulting, trademark registration, and business setup services. We ensure compliance and drive efficient business growth.

Need Any Help? Or Looking For an Auditing Service

© 2024 AARMAK. All Rights Reserved.