Following the passing of Law No. (10) of 2018, the Dubai Development Authority (DDA), formerly known as the Dubai Creative Clusters Authority (DCCA).
The Authority has been given the Authority to play a significant part in Dubai’s economic expansion in the future and to establish international benchmarks for municipal and commercial services, real estate development, and urban planning. For all of its stakeholders, including real estate developers and all other crucial strategic partners that support Dubai’s economy, the Authority is dedicated to becoming the facilitator of business-friendly settings that create business excellence.
Three key delivery streams are the Authority’s primary areas of focus:
Company liquidation is the process through which a company decides to cease operations because it can no longer sustain itself. When a corporation goes through liquidation, it sells its assets to pay off its debts or liabilities. The proceeds from the sale of assets are divided among the company’s shareholders.
Continue reading to learn about the requirements and criteria to Liquidate Companies under Dubai Development Authority (DDA):
The shareholders of a DDA-licensed company submit to the Authority a liquidation notice to start the process of the company’s liquidation. The notice should include the justification for the decision to liquidate the business.
The company’s shareholders should approve a board resolution to dissolve the business in a meeting. The Company Liquidator in Dubai who supervise the winding-up process should also be identified by name and address in the Resolution. The company’s letterhead must have the shareholder resolution to dissolve the business in DDA.
The Resolution must be notarized, confirmed by the UAE embassy of the country where the shareholders are located, and approved by the Ministry of Foreign Affairs of the United Arab Emirates if the company’s owner is a foreign corporation or if the shareholders are located outside of the nation. The Resolution must be sent to the DDA and signed with the necessary liquidation payments.
A letter confirming the appointment should be sent from the Company Liquidator in Dubai to the DDA. Any audit company with a current permit to do business in the UAE may act as the liquidator in Dubai.
The liquidation announcement should be made through newspaper ads published in both English and Arabic newspapers. Any interested person may claim the corporation within 45 days of the advertising’s publication, as stated in the advertisement. After 45 days, the free zone authority will not consider objections or claims.
The Dubai Development Authority must receive the original copies of all papers, including licenses, firm formation certificates, leasing agreements, extra activity licenses, permits, etc. After you file the liquidation request, these papers will no longer be valid.
The corporation that plans to liquidate must get specific permissions, including clearance from the Dubai Customs Department. The DDA Finance Department, DDA Government Services Department, DDA IT Section, Etisalat clearance, and Facilities Management clearance are additional clearances that are needed. The corporation can only be closed after receiving approval from these authorities.
A liquidation report, in particular, is a crucial component of corporate liquidation in Dubai. You are required by the Dubai Development Authority to provide a liquidation report that includes details on the company’s financial situation at the time of closure. A registered auditor must thus carry out this task.
If companies with experience in Dubai company setup services understand the procedure, it is simple to grasp and understand. We can provide these services with ease. In Dubai, LLC, company creation is another area where we have accounting and auditing knowledge.
While the procedure of liquidating a corporation in the UAE is a step-by-step one that takes time progressively, there might be many obstacles encountered.
To liquidate your business in the UAE, you will need to follow all legal requirements, which we will help you with:
You may contact our team for initial advice on proceeding according to the most suitable approach since we have a specialized expert team for company liquidation services.