DIBN Business Service
Liquidation is the method by which a LLC company (or a part of a company), sole establishment, Dubai free zone company or institution closes its operation and therefore the assets and property of the corporate or institution is distributed to creditors and shareholders (owners) of the UAE registered Company. Liquidation is additionally known or noted as winding-up or dissolution, though dissolution theoretically refers to the ultimate steps of the liquidation process. The liquidation of company in Dubai, UAE becomes inevitable when a corporation don’t have liquid funds to hold on day to day transaction of the company, creditors aren’t being paid or company commits some serious offense, and a regulatory authority or agency in UAE of Free Zone Authority accountable for the relevant sector files a suit for the affecting the operations of the corporate.
There are bit differences between freezone company liquidation and Dubai main land as freezone companies has to pass the resolution from Board for liquidating the corporate and appointment of liquidator for the process whereas in dubai mainland companies required to pass and notarize Board Resolution to liquidate/cancel/ wind up operation of LLC company and appoint liquidators. In freezone all the dues has to clear and follow the process duly designated by the freezone with 45 days of newspaper advertisement for any objection in some freezone. Dubai main land have to get the letter from the auditor to agreed on liquidate the company also the clearances from govt department like DEWA , ETISALAT/DU , RTA, Bank , Department of Labor & Immigration etc.) and the same like some freezones closer advertisement in local newspapers with 45 days waiting period to obtain NOC and submit to the Department of economic development. The whole process takes a tentatively 70 to 80 days of process.