Company Liquidation Services in UAE

Liquidation is a process by which a company closes its operations and obtains a deregistration certificate from the authority where it is registered. In most cases, a company can be liquidated either due to the shareholders deciding to move on, or the company going into losses in the current times. The Liquidation could be of various types. However, Liquidation is broadly categorised as Voluntary and Involuntary Liquidation. In cases where shareholders of a company decide to close its business operations, then the company may choose to go ahead with a Voluntary Liquidation process in accordance with the UAE Commercial Company Law (Federal Law No. 02 of 2015) which is applicable to companies that are registered in the UAE Mainland. In the case of Free Zone Companies, each Free Zone has its own regulation in place, which defines the requirement and process for Liquidation of a company in the said Free Zone. For the above to be successfully concluded, the below processes are required to be set up and followed by the company: • In cases where the shareholders of a company want to liquidate the company, they need to pass a Resolution to that effect • The company would be required to appoint liquidators who would initiate the process at the relevant authorities. • Newspaper advertisements would be required to be published in the local newspapers.

• The VAT, Excise and Customs Registration would be required to be cancelled. • The Company would be required to settle all dues to the creditors, vendors and all other third parties such as Banks etc., settle all outstanding litigations, terminate lease/tenancy agreements, pay the employees’ salaries and benefits, and cancel the employees’ visas and immigration cards. • The company’s bank accounts and other accounts with the Water & Electricity department, Municipality, Immigration, Labour department etc., would have to be closed. • After settling their debts and receiving the required No Objection Certificates (NOCs), the company would be able to initiate the process of closing down the company, and the Statement of Affairs & Liquidation Report can then be prepared by the liquidators. • Upon submission of the required documents, the authority would then be able to issue the deregistration certificate, striking out the name of the Company from its register and records. How MBC Can Help? MBC can act as a Liquidator and conduct the complete company liquidation process. We have a team of Legal consultants and Auditors who all specialise in conducting liquidation processes in Mainland and Free Zone Companies in the UAE, as per the applicable regulations in the respective zones.