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Company Liquidation – Procedure with Dubai Development Authority

The centre of interest of the Dubai Development Authority, as well as its main goal, are the following:

  • Development of industries;
  • Providing licensing services and regulations governing strategic industries and projects that are in the authority’s area;
  • Development control and real estate planning

As most already know, Dubai Development Authority has a major role in the progress as well as the economical evolution of the entire country. It’s set a benchmark in the maintenance of global standards for real estate development, urban planning, and business and municipal services.

The government authority entitles a comfortable business industry and leads it towards excellence, benefits stakeholders as well as the DDA’s strategic partners and real estate developers. The department contributes towards the economical evolution of the emirate and the entire country. It emphasizes in providing the highest quality of services, values, and strategies in transforming the UAE and excelling globally.

Find out more: Liquidation Process for A Company with No Assets

Steps for Company Liquidation with DDA

If you wish to liquidate your company with the DDA, the authority may be able to help you. Here are the steps that are involved in the liquidation process:

  1. provide notice to Dubai Development Authority

The company that is to liquidate is to submit a formal notice to the Dubai Development Authority mentioning the intent to undergo liquidation of company in UAE. Also, the reason for the closure should be stated. It is important to submit the notice a month or two prior to the company liquidation, otherwise, there will be fines in the cancellation of the outstanding lease agreement(s).

  1. Pass a board resolution

A board resolution for the deregistration is to be drafted, then attested in the presence of authorities. If the shareholders won’t be able to be physically present as they are outside of the country, then the board resolution should be notarized then attested by the UAE embassy in the country that the business owners are in. The same will then need to undergo legalization with the UAE Department of Foreign Affairs.

  1. Give back the office keys

The company that intends to liquidate is to return the keys and transponders.

  1. Have the liquidation announced in newspapers

The company to liquidate is to provide a copy to the authorities of a newspaper advertisement regarding the company’s liquidation. One should be in English, while another is required to be in Arabic.

  1. Submit the original documents required by the DDA

The original documents that will be requested by the DDA for submission include the DED license (must be original and issued through the DDA, lease agreement, share certificates and certificate of formation or incorporation, and company’s original licenses and permits.

  1. Get clearance from the authorities

There are clearances that have to be secured by the company that intends to liquidate and that includes the clearance from the Dubai Customs Department. Other clearances required are from DDA Finance Department, Government Services Dept of the DDA, DDA IT Section, Etisalat clearance, and Facilities Management Clearance.

  1. File a Liquidation report

The liquidation report should be one that is prepared by Dubai Registered Auditors

You may want to know: Company liquidation value calculation

What’s a company liquidation?

Company liquidation is the process in which the business decides in winding up the operations of the company as it no longer wishes to continue. When a company chooses to undergo liquidation, it is to sell its assets in order to pay back liabilities, obligations, and debts of the company. The amount that’s collected following the sale of the assets will be used in settling debts and distributed to shareholders.

There are different types of businesses in the UAE, including sole establishment, free zone company, and limited liability company. When a business is liquidated in the country, most especially in Dubai, the properties and assets of the business will be distributed to creditors as well as the shareholders of the business, as mentioned earlier. However, it is important to take note that the sale fo the assets and property of the business is to be done by the appointed liquidator of the business. Company liquidation in the UAE is also referred to us company winding up.

The things that a company have to do prior to the finalization of the liquidation include settling all utility bills, paying off all telecommunication bills, preparing final audit reports, closure of all bank accounts, cancellation of visas that are under the company license, and more.

It is understandable for a business that wishes to undergo liquidation to have doubts with regards to the process and whether they are able to complete it successfully. Any mistake in the process may result in fines and penalties. In order to avoid such and make sure the company is liquidated in the correct manner, it is necessary to hire a company liquidator in UAE. If you wish to speak to an expert, call us.

Find more: What are the Roles and Duties of a Liquidator in 2020

Mohamed Ali Farahat has worked on various forensic accounting assignments, which include operational and financial audits, reconstruction of accounting statements, financial information analysis, and investigation of fraud and financial distress. Read more