As a Liquidator, Our Projected Role Includes:

• Drafting the Board Resolution
• Publishing Advertisement in English and Arabic Newspapers
• Settling with Employees
• Settling with the Debtors/Suppliers
• Visa Cancellation
• Bank Account Closing
• Obtaining NOC from DEWA, NOC from Local Telecom Company
• Registered Tenancy Agreement Cancellation
• De-register with FTA
• Preparation of the Liquidator’s Report
• Submission of the Final Report to the Authority to Obtain the De-registration Certificate

Company Liquidation Process

In order to preserve compliance, it is critical for a company to execute all of the stages associated with company liquidation in Dubai. The formal process of company liquidation in the UAE is as follows:

• Preparation and Approval of Shareholders’ Resolution for Dissolution: The dissolution of the company resolution adopted by the shareholders must be drafted and approved. The resolution must be notarized by a Notary Public for Limited Liability Companies (LLCs) registered in the UAE.
• Appointment of a Liquidator: A liquidator must be appointed, and it is necessary to receive a formal acceptance letter from the liquidator.
• Submission of the Shareholders’ Resolution: The shareholders’ resolution must be delivered to the appropriate licensing authority along with all the required documents and fees.
• Publication of a Notice of Liquidation: Following the issuance of a provisional liquidation certificate, the business is required to publish a notice (in English and Arabic versions) of liquidation in a publication that is accessible to the general public.
• Notice Period: A notice period of up to 45 days could be required, depending on the registration jurisdiction.

After the notice time expires, the appointed liquidator will begin working on the Liquidation Report. The competent Authority must receive this report and all required supporting documents. The necessary cancellation fees must also be paid. After reviewing the application, the Authority will issue a “License Cancellation Certificate” if it is approved.

Company Evaluation Before Liquidation

Before a company undergoes liquidation, a comprehensive evaluation is necessary to assess its financial position. Evaluation is crucial for the following reasons:

• Determine Asset Value: A proper evaluation will help determine the market value of the company’s assets. This will ensure the business gets fair returns for its property, equipment, and intellectual property.
• Assess Liabilities: Evaluation also helps determine the company’s liabilities, which must be settled during the liquidation process. Knowing the full scope of liabilities is essential for prioritizing creditors and ensuring compliance with legal requirements.
• Decide on Profitability or Restructuring: In some cases, a business may opt for liquidation when it’s deemed no longer profitable or sustainable. Evaluation can provide insight into whether the company could be restructured or if there are other alternatives to closure, such as selling to a buyer or merging with another company.
• Ensure Fair Distribution: For companies with multiple shareholders or investors, evaluation ensures that the liquidation process is fair, with proper asset distribution. It helps prevent disputes among stakeholders regarding the fair value of the business’s assets.