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Liquidation of companies in Dubai, the UAE

Article image: Liquidation of companies in Dubai, the UAE

The procedure of the company liquidation in the UAE requires a qualified approach. You should understand that the current legislation regulates certain procedures, which precede liquidation of the legal entity. During the liquidation you will have to work closely with governmental and regulatory authorities and agencies. That’s why it will not be easy to complete individually the liquidation of the company in Dubai, the UAE. Let’s see the basic requirements of the regulatory authorities.

Requirements for liquidating a legal entity

The first and basic requirement of the public authorities to the companies is the absence of debts / liabilities. Company liquidation in Dubai, the UAE is possible only in the case of absence of debt obligations to government agencies or private persons.

The manager of the liquidated company must provide on the obligatory basis a declaration of the paying capacity of the company, and authenticate it in an appropriate way. This declaration should be approved by the appropriate government commission on the liquidation. Director of the company gives a positive conclusion on the balance at the moment of termination of the activity of a legal entity.

In addition, the first manager approves the liquidation plan with the obligatory indication of the following items:

  • Information about the reason of cessation of business;
  • Determination of the time period for liquidation of the company;
  • Personal data of the person who is authorized for liquidation, and etc.

Important:

In the case of untimely submission of the relevant documents on liquidation of the legal entity to the state register, the owner of the company can face penalties.

In general, the extent of the requirements to the liquidated companies depends largely on the type of business and the legal form of the legal entity. For example, the UAE companies, which are engaged in the international trade sector, have to submit a certificate of the absence of debts to the customs services of the Emirates, and etc.

Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:

Violation of the legislation on UAE company closure and consequences for the owners

If the shareholders of the company in the UAE have left the company without renewing the business license and without undergoing properly the procedure of its liquidation, they will be denied future access into the country. If such a founder would decide to visit the Emirates after a certain period time, the entrance to the country may be closed for him.

It will be possible to solve this problem only after the full repayment of the outstanding debts of the company and accumulated penalties. Moreover, the ban on entrance will apply both to the territory of the UAE and of the other Gulf states. Experts do not recommend to leave the companies, but to act only within the legal framework of the current legislation and close the company properly.

If you faced the requirement to liquidate the company in Dubai, the UAE, you can always use the assistance and support of the qualified professionals. Participation of the professionals excludes negative consequences for the owners of the company and ensures full compliance with the current legislation on companies liquidation.

Use the contact us form to get the advice on any questions you may have in respect of corporate law in Dubai and other Emirates of the UAE.

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