Company Liquidation is a procedure where an organization takes a choice to wrap up its operation as it can no longer proceed with the business activities. When a business goes through liquidation, they sell their resources so they can take care of their obligations/liabilities/commitments. The sum that is gathered in the wake of selling the resources is shared by the investors of the organization. To end free zone companies in UAE below mentioned steps must be followed:
Shareholder or Board Resolution
A board or shareholder resolution where all partners decided to close the business is mandatory. All authority & duties of the company directors will be finished upon submission of the liquidation of the company.
Official Notification to the Freezone Authority
The freezone authority should be informed in regards to the wish to drop the business, the freezone will give you a cancellation form & the signed board resolution should be submitted alongside the cancellation notification. After this, the freezone will accept the wish to liquidate the organization by sending a termination invoice of freezone. When the cancellation installment has been made, the freezone will begin the legal procedures of dissolving the organization.
NOC’s & Clearance
All telecommunication & utility services under the organization name should be dropped & a clearance letter received, this likewise is needed for any business space under the organization name.
Workers & Sponsorship
All visas and work licenses for workers & dependents under the organization name should be released. In any case, you should remember that as per the UAE Labor Law, an organization should give a worker a two-month paid notification in the case of organization liquidation before their agreements are ended.
Official Announcement of Liquidation
After all the required documents are in place, the application for company liquidation will be reviewed & processed. You will also want to publish an official announcement stating that the firm is under closing in an Arabic newspaper or gazette for 15 days & bring a confirmation company to the registrar. Ie. If no claims are made or are settled, evidence of settlement should be given to the freezone authority for a termination confirmation to be released.
Termination Confirmation
When all the previously mentioned steps are finished, the Freezone authority will deliver the organization’s closing declaration. You should remember that the entire cycle of liquidation process of freezone companies in the UAE can commonly require 2 months.
Corporate Bank Accounts & Visa Cancellation
When the company termination letter has been delivered, this can be submitted to the bank to cancel the corporate bank account. Any leftover bank balance will be shared between the previous company partners except otherwise specified in the board resolution. Also, all the visas of workers must be canceled & cleared while liquidating a company in a free zone.
To ensure hassle-free company liquidation in the UAE following clearance certificates must be required:
- >Â Clearance certificate from related free zone authority
- >Â Clearance certificate from business unit
- >Â Clearance certificate from all utility service providers
- >Â Clearance certificate from any associated authorities according to the regulated activity
- >Â Clearance for customs
The company liquidation process is a bit difficult, so it is wise that the business entrepreneurs can take the help for the best company liquidation services from the expert business consultants in UAE. This will certainly aid in decreasing the complexity of the liquidation process as well as the shareholders would feel more relaxed & protected to carry out the company liquidation process in Dubai.
Hire the Best Registered Company Liquidators in the UAE
If you are planning to officially close your Freezone Company in UAE, then you can select ARC Associates, the reputed company liquidator in UAE. We can assist you with this entire liquidation process and all the relevant steps above in a hassle-free manner & to ensure the company liquidation process is 100% compliant with the regulations of UAE Company Law. We have years of experience in delivering error-free company liquidation services in the UAE. Our highly skilled & experienced liquidators will take care of all the required documents, clearance certificates, utility cancellations, visa cancellations, etc to make the liquidation process is smooth. Get in touch with our team for an initial consultation to proceed with hassle-free company liquidation services.