A business liquidation in Dubai requires a high level of professionalism and expertise to execute, a lot of tedious legal and financial process are involved which may take a very long time to complete, liquidation of a company should be a unanimous decision between the members of a company before the execution. The UAE commercial law regulates the liquidation of an LLC company in the following cases:
What is Company Liquidation
The company liquidation in Dubai is the process of closing an LLC company, canceling the trade license and distributing the company assets and properties. In order to cease operations and activities, the shareholders should agree to dissolve the LLC company, sign a board resolution, assign a legal auditor, cancel any visas on the company sponsorship, get clearances from the government authorities, pay any outstanding debts or fines on the license and cancel the bank and credit accounts.
How to Wind Up or Close an LLC
Closing an LLC company in Dubai takes between 60-80 days to complete, this is the shortest time considering the company has no fines and nobody submitted a claim or objection, a few obstacles may arise during the winding up process, our professional and deep experience can easily remove any problem and speed up the liquidation process, the LLC liquidation steps are:
Dubai DED License Cancellation
Closing a business and Canceling a trade license in Dubai mainland requires the approval of the Economic Department (DED), in case the company is LLC, the board resolution between the shareholders is signed in front of the Notary Public in Dubai, the DED will issue the initial and final liquidation approvals, any claim or objection is submitted to the DED, the final payment will include any fines on the license, if the trade license is expired, the DED will fine the company AED 200/- per day besides any fines from other government departments, the liquidation process ends by canceling the commercial trade register.
Many people confuse LLC company liquidation and professional license cancellation, canceling a sole establishment or a civil company does not require a legal liquidator, it takes less time, less paperwork and cost less money, the company owners are personally liable for any debts or fines on the license.
Closing or Canceling a Sole Establishment License
The steps to close a sole establishment or a branch of a sole establishment are:
Closing or Dissolving a Civil Company
Closing or Canceling A Branch of Foreign Company License
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Special Company Cancellation in Dubai
The economic department in Dubai offers a special type of license cancellation, this type is for the expired licenses for more than 2 years, the local partner should submit an undertaking letter, clear all visas and process the company cancellation, this is especially useful if the partner passed away or left the country without any contact.
Clearances Needed for Business Closing or LLC Liquidation in Dubai
The company liquidation in Dubai requires a careful and professional approach as lots of legal documents, governmental agencies and paperwork are involved, without the right guidance and follow up, the company liquidation may take several months to complete, selecting the appropriate kind of liquidation will help hasten the whole process and save cost, at Paso, we offer professional advice and better solutions to make your company liquidation easier in Dubai.