Company Liquidation Dubai, UAE
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Company Liquidation in Dubai
To close down a company in Dubai or anywhere else in the United Arab Emirates, you need to first appoint a liquidation firm. According to UAE Company Law, only approved liquidators or liquidation firms can be hired to oversee the process of de-registering a company.
A company can be dissolved by its owners or it can be forced to close down when it can no longer meet its debt obligations to its creditors. Accordingly, there are two types of company liquidation in Dubai.
There may be multiple reasons why a company is liquidated of its own accord. This may be due to the death of the owner / primary shareholder and the absence of a succession plan, shareholders liquidating the company because it has achieved its business objectives or because the original purpose for which the company was set up is no longer in existence, its merger with another company, financial losses which make it difficult for the company to continue business operations, or other reasons.
Sometimes, a company is forcefully closed down by the authorities because it has violated the laws of the UAE, or because it is insolvent, ie. it no longer has any money to continue and cannot meet its existing debt obligations to its creditors. In case of the latter, it is to be remembered that the authorities take cognizance only following complaints from creditors and not of their own accord. With the help of an approved liquidation firm, the assets are liquidated and the creditors paid back as much as possible.
How to Wind Up a Legally Limited Company (LLC)
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Board of Directors meeting
The Board of Directors must unanimously decide to close down the company. All Directors must agree to this, the document which specifies this must be attested by a Notary Public. At the meeting, the decision to appoint an approved liquidator must also be taken, and too must be mentioned in the legal document. -
Submission of Application for Liquidation
A Liquidation Form needs to be filled in and duly submitted to the Department of Economic Development in the emirate where the company has been registered. For company liquidation in Dubai, there is the Department of Economic Development, while in Sharjah, the corresponding authority is the Sharjah Economic Development Department. -
Publication of the Dissolution Decision
The decision to dissolve the company must be published in a local Arabic paper, so that all existing creditors are notified and can lodge their claims with the company. This must be published at least 45 days prior to winding up the company, so that creditors have sufficient to make their full and final claims upon the company. -
Liquidator Acceptance
The approved liquidator or liquidation firm must agree to take on the responsibility of liquidating the company and its assets. This must be given to the company in writing, so at the time of taking the decision to wind up the company, the liquidator must be kept informed that he/she is being appointed as the official liquidator to oversee the process of closing down. -
Notice Period
The Department of Economic Development in the emirate where the company is registered, such as the Department of Economic Development – Abu Dhabi for firms registered in Abu Dhabi or the Department of Economic Development of Ras Al-Khaimah for companies incorporated in Ras Al Khaimah, mandates a 45 day notice period for all companies that have decided to close down. -
Visa Cancellation & Settlement of Dues
During the 45-day grace period granted by the Department of Economic Development, all company-related visas must be cancelled. This includes both the work visas of employees / partners as well as the residence visas of their spouses and children, if any. A No Objection Certificate must subsequently be obtained from the Ministry of Labour and Ministry of Immigration.
All outstanding utilities and communications bills must be settled and NOCs obtained from the utilities provider, such as DEWA for Dubai and communications provider, such as Etisalat / du. -
Liquidator Report
The Government approved liquidator submits a Final Audit report stating that all outstanding dues owed to creditors have been settled and there are no pending claims upon the company after the end of the 45-day grace period. To prevent any further delays, it is always recommended that dues owed to creditors, clients, or other third parties are settled before the decision to close down the company is taken. -
Liquidation Certificate
Once the Department of Economic Development where the company is located, such as the Fujairah Department of Industry and Economy for companies registered in Fujairah, or the Ajman Department of Economic Development for companies based in Ajman, is satisfied that the company has met its creditors' claims and all other outstanding dues upon the company, it issues a Final Liquidation Certificate stating that the process has been completed successfully.
This is the final step in the process. Once the Certificate has been issued, the company ceases to legally and officially exist.
Why Choose Us For Company Liquidation?
We are a Government-approved liquidator and have experience with company liquidation in Dubai and elsewhere in the United Arab Emirates. Our expertise ranges from Sole Establishment / Sole Proprietorship to Legally Limited Company (LLC) to Legally Limited Partnership (LLP) to Civil Company. Whether it is located on the mainland, in a free zone FZE, or offshore (such as in the Jebel Ali Free Zone, abbreviated as JAFZA; or Ras Al Khaimah International Corporate Centre, abbreviated as RAKICC or RAK Offshore), we can be of assistance. We have assisted in the liquidation of over 100 companies and possess years of experience in the field. So choose us.
With the right liquidation firm in your corner, it can be a smooth affair. Contact us to know more.
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To date we are providing Accounting Services for more than 250 clients across the UAE in Trading, Construction, Real estate, Healthcare, Logistics and other services.
Accounting Services – Frequently Asked Questions
FAQ’s
Here are some common questions about Accounting Service.
As an team of chartered accountants in Dubai, we take pride in keeping the financial transactions and records up–to–date and accurate, allowing key decision makers to rely on management reports that bring cost reduction, consolidated accounting processes, and improvement of efficiency and compliance; enabling stakeholders to focus on where it matters.
Our Expertise
- Accounting and Bookkeeping Services
- Online Accounting/Onsite Accounting
- Backlog Accounting
- Accounting Documentation and Compliance
- Accounting System Set–Up and Training
- Budgeting and Forecasting
- Financial Statement Preparation
- Customized MIS Reports
- Vat Compliance and Return Filling
- We think of our clients as our partners, we collaborate with them not as an external firm but as an extended team, adding value to their businesses.
- We currently provide accounting support to more than 250 clients in trading, construction, real estate, healthcare, logistics, and other services.
- Traditionally, it was common for business owners to hire bookkeeping professionals
- To survive in today’s era of competitive markets and industries, a successful business needs to evolve its processes regularly and save or minimize costs and expenses while maintaining product quality. Now, you can outsource such an appalling task: accounts payable processing and focus on running the business. Our competent team of accountants is highly capable to provide accounts payable processing services periodically depending on your needs. Also, trust that the crucial data of your creditors are perfectly safe.
- pers to work in-house but with modern technology, maintaining a local accountant is often unnecessary. For a business, outsourcing is a logical way to cut costs associated with maintaining personnel. This frees up time and money for business owners to focus on increasing their profit margins, rather than getting occupied with the details of managing people and paperwork. Furthermore, outsourcing removes many of the stresses associated with operating a small business – such as meeting tax, invoice, and billing deadlines. In a nutshell, outsourcing your accounting allows for a sense of freedom and flexibility that is not allotted by most traditionally managed businesses.
- Save staffing and payroll costs
- Access a pool of experts and resources
- More time to focus on your business
- Enjoy a stress-free tax season
- Take advantage of the latest technology
- Scale your books with your business
- Reduce the likelihood of errors
- Guaranteed privacy and confidentiality
- Our Expertise:
- Chart of account review and set–up.
- Data entry, including daily transaction recording.
- Frequency of visits will be determined based on the requirement. We can provide daily, weekly, monthly, and quarterly visits.
- Accounts payable and receivables processing.
- Bank Reconciliations
- VAT Compliant Procedures
- Generating MIS Reports
- ● You do not have to take this everyday challenge, so you can focus on where it matters. We will take the extra mile to understand your business, delivering tailor-made solutions if you are looking for bookkeeping firms in Dubai.
- One of the most important facets of an organization is how well the accounts and finance of the company are managed; your financial statements represent your financial performance throughout the year and predict future performance. Important decisions are made based on these financial statements including banks and financial institutions’ lent loans.
- How can we help?
- We design a financial system including drafting a system for accounting procedures and processes – recording of entries, documentation of all transactions, segregation of duties, and bookkeeping.
- We shall set up the accounting procedures and software to carry out all the financial activities appropriately.
- We shall take up the data entry task and update all your accounts regularly depending on the frequency of your transactions.
- Our team will supervise and check from time to time whether the process is being followed accurately. Inefficiencies will be rectified during this procedure.
- Finally we shall prepare your income statement, balance sheet, cash flow statement, and statement of equity. All your reports will be prepared quarterly and annually for regular analysis of your financial performance.
- One of the most important facets of an organization is how well the accounts and finance of the company are managed; your financial statements represent your financial performance throughout the year and predict future performance. Important decisions are made based on these financial statements including banks and financial institutions’ lent loans.
- How can we help?
- We design a financial system including drafting a system for accounting procedures and processes – recording of entries, documentation of all transactions, segregation of duties, and bookkeeping.
- We shall set up the accounting procedures and software to carry out all the financial activities appropriately.
- We shall take up the data entry task and update all your accounts regularly depending on the frequency of your transactions.
- Our team will supervise and check from time to time whether the process is being followed accurately. Inefficiencies will be rectified during this procedure.
- Finally we shall prepare your income statement, balance sheet, cash flow statement, and statement of equity. All your reports will be prepared quarterly and annually for regular analysis of your financial performance.
- The solution is easy; opt for our Accounting Supervision Service. There are several means of committing and hiding a strategically planned fraud in an organization. Taking precautions is the best you can do to avoid incurring huge losses, or even bankruptcy, in the future. One could never know if one of your most trusted members could be cooking your books for personal gain. To avoid losing your life’s hard work and all the efforts you and your team have put into the business, our team will conduct a regular check of your entity. Since we are a third-party firm, no self-interest or self-review threats could cloud our judgment. You can fully trust us to ensure that the entries of your daily transactions, bookkeeping, and financial reporting are being performed honestly and truthfully.
- Don’t despair; sign up for our Updating Backlog Accounts Service. Maintaining proper books of accounts is a real challenge for small & medium enterprises. If your business is registered under commercial company law in UAE, it is compulsory for you to maintain all your financial transaction records in the prescribed format. Our team will help you to prepare books of account from the date of incorporation of business till the current date; as you provide all the necessary supporting documents; consisting of all the original purchase and sales invoices, payment and receipt vouchers, bank statements from the start of business and record of all the checkbooks used during the period. Our team of experts will update all the records in your company’s accounting software. You will be provided with the following financial reports:
- Balance Sheet or Statement of Financial Position
- Statement of Cash Flow
- Details of the Company’s Accounts Receivable
- Details of the Company’s Accounts Payable
- Efficiency Reports
- Calculation of Variances and Output Analysis
- Calculation of Financial Ratios and Analysis
- Calculation of the Break-even Point for the Company
We certainly can. The strongest pillar of your business is your employees; the best way to inspire their productivity is to ensure a healthy working environment that includes salaries being paid on time. Payroll management can become complex if not properly handled as it involves several perquisites and benefits instead of only wage calculation e.g. leave, vacation expense, insurance, medical benefits, etc. Focus where it matters; instead of wasting time researching salaries and wages laws and regulations, sign up with us for Payroll Services.

