UAE is always focused on building a robust business infrastructure to support business and drive economic growth.
Expats from all over the world continue to move to Dubai for a better life and better opportunities. There are immense opportunities in Dubai for business setup and to operate a successful business.
However, in the event of closing down your business or closing down and reopening a new business, etc., there are a few documentations, paperwork and legal proceedings to be initiated. It is to ensure the smooth closing of your establishment and not record any fines or late fees.
As closing the business in Dubai requires a lot of processes, documentation, attestations, and approvals from Government Authorities, it is best to initiate the closing of business in Dubai by taking the assistance of a well experienced Business Consultants to save time and effort.
Our expert team at Al Fursan Business Consultants will hand hold you throughout the company liquidation process to ensure you have a hassle-free company liquidation in Dubai.
The basic steps for closing down all types of legal forms of business in Dubai are almost the same with few variations depending on the type of business and the business jurisdictions – Mainland, Freezone, Offshore.
For companies with share, the process is longer because it requires liquidating the shares, collecting the debts and paying the creditors’ before finalizing with DED.
Companies which require a liquidator for closing the business in Dubai
The government authorities must be well informed that you are no longer in the business to avoid any accumulated fines and penalties on your existing license. Active Trade Licenses are to be renewed every year and defaulting that will yield fines.
For shareholding company, it is important to settle the liabilities with creditors, partners, and other stakeholders. It also helps in maintaining your goodwill, business reputation, and credibility if you want to start fresh by opening a new business.
There are three types of closures for Freezones companies
Closing company in Dubai is more than just ceasing the operations, it includes lot of processes to finally terminate the trade license. It is mandatory in UAE to notify the Freezone authority in advance as per their requirement.
In the DMCC Freezone, the business closing application must be submitted through the member portal.
The authorities, duties, and responsibilities of the Directors of the company will be terminated as part of the cancellation of business license.
The application will be reviewed and processed. This will be followed by an announcement in a local Arabic newspaper. DMCC authorities will then file the final termination of the company and issue termination letters.
In JAFZA the companies must notify the authorities 3 months’ prior for the office and warehouse facility and 6 months’ prior for plot facility.
In all cases, the employee has to cancel the visas and work permit. The employees have to be given a two-month paid notice period before terminating their contracts.
The company must ensure, they clear all the arrears, obtain the required clearances, notify the concerned government authorities, obtain the final License Cancellation Certificate and have a smooth closure to avoid any future legal violations.
For any assistance regarding company liquidation in the UAE, talk to our consultants right away!
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