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Liquidation

Guide to Liquidating a Company in Meydan Free Zone

Complying with the relevant regulations as laid out in Federal Law No. (2) of 2015 on Commercial Companies even when terminating a company in Meydan Free Zone or any jurisdiction in the United Arab Emirates is necessary. Mandatory or voluntary company liquidation must be carried out in accordance with the Commercial Companies Law of UAE unless the company Memorandum or Articles of Association specify special provisions which are contrary to the applicable legislation.

Conditions for Company Liquidation in Meydan Free Zone

We constantly get questions on how to quickly close a company in Meydan Free Zone and how to have hassle-free company liquidation services in MFZ. Meeting the conditions listed below can help ensure quick and hassle-free deregistration in Meydan Free Zone, which is applicable to all company structures registered in the free zone.

  • The company to be closed must not have outstanding liabilities. If it has debts that it is unable to settle, the process of closing the insolvent company will be done by proper courts under Commercial Transactions Law (No 18) of 1993.
  • The existing visas sponsored by the company to be closed have to be canceled.
  • The existing bank accounts of the company have to be closed permanently.
  • Assets must be transferred onto a third party or to the shareholders during the Meydan company liquidation process.
  • Outstanding fees and charges from Meydan Free Zone must all be cleared.
  • A company resolution has to be prepared, stating the intention of the Board to liquidate the company and appoint a liquidator in carrying out the entire procedure.
  • An appointed liquidator has to send a confirmation that there are no longer liabilities or obligations left unsettled. The confirmation has to be in the form of a Liquidation Letter or Audit Report.

Read More : Company Liquidation in JAFZA (Jebel Ali Free Zone).

Required Documents for Company Liquidation in Meydan Free Zone

Required documents to accomplish the deregistration of a company in Meydan Free Zone are as follows (subject to change at the discretion of the free zone authority):

  • Clearance certificate issued by Meydan Free Zone authority
  • Clearance from the landlord/business unit of the company
  • Utility provider clearance
  • Clearance certificate from related authorities, depending on the company’s regulated business activities
  • Customs clearance

Requirements for Company Liquidation in Meydan Free Zone

The general requirements to close a Company Liquidation in Meydan Free Zone are listed below. The free zone authority may require additional documents, depending on the nature of the business and specific circumstances.

1. Declaration of Solvency

This is for solvent companies wanting to go through the process of voluntary company liquidation. The declaration has to be signed by all the company directors. This document doesn’t need to be signed within the free zone or attested and notarized. Only the original document signed by the company directors should be submitted.

2. Parent Company or Corporate Shareholder’s Board Resolution

Applies only to companies with branches and corporate shareholders. It is required that the document be notarized and legalized with the UAE Embassy or Consulate where the document was executed.

3. Parent Company or Corporate Shareholder’s Certificate of Incumbency

Applicable only to companies with branches or a corporate shareholder. The Certificate of Incumbency should be issued recently or not more than 365 days and notarized and legalized with the UAE Embassy or Consulate of the place of certificate issuance.

4. Shareholder’s Resolution

The shareholder’s resolution must be signed either in person in Meydan Free Zone or notarized. This requirement for company liquidation in Meydan Free Zone only applies to companies that have individual shareholders.

5. Joint Shareholder’s Resolution

This is for a Joint Venture company. The resolution has to be signed in the free zone by the shareholders themselves or authorized representatives of the shareholders. Notarization is necessary and the joint shareholder’s resolution must be submitted together with the required Resolution from every single Corporate Shareholder.

6. Power of Attorney

This is only if it is applicable; otherwise, the requirement can be disregarded. For a Power of Attorney that was issued in the country, the validity needs confirmation through Dubai/UAE court portal. It also has to be notarized and legalized with the UAE Embassy or with the Consulate where it was issued. The original copy of the Power of Attorney has to be presented during the verification process. Lastly, it has to specifically state that the agent, attorney-in-fact, or Power of Attorney holder has authority in winding up the company in Meydan Free Zone or removing a branch.

7. Passport of the Power of Attorney holder

The original passport must be presented to the Meydan Free Zone authority. If not applicable, disregard this particular requirement.

8. Official Appointment of a Meydan Free Zone liquidator

This is applicable to all companies in the free zone. The liquidator should be from an audit firm or an auditing firm that is licensed and registered by a UAE competent authority.

9. Confirmation of the Appointment Liquidator

The original document is required. Must be submitted only after the appointment of a liquidator for the company winding-up process.

10. Parent Company’s Undertaking Letter

Only applicable to a branch of a parent company. The Undertaking Letter must be signed by the parent company’s director. There is no need to undergo notarization and legalization for this specific document. Only the original document signed by the company director is necessary.

11. Appointment of a Committee for Company Wind-Up

This is only for companies registered in the free zone and for those that are insolvent and undergoing the winding-up process. The creditors of the business must appoint the members of the committee. The Liquidation Committee has to consist of at least three members.

12. Customs Clearance

This is only for a company in the free zone issued with an industrial and trading license.

13. No Objection Certificate from Third Party Regulator

This is only applicable to the company that has regulated business activities.

14. Company Articles of Association and Memorandum of Association

The issued AOA and MOA are both required for submission to the authority. Original copies are necessary.

15. Issued Certificate of Registration

The original copy of the Certificate of Registration is required. This is only for those who have been with the certificate. If no registration was issued by Meydan Free Zone, disregard the requirement.

16. Share Certificate

This applies to the company that has undergone the issuance of the Original Share Certificate. If no e-share certificates were issued, ignore the requirement. Take note: all the originals that are issued to the shareholders must be submitted.

17. Personnel Secondment Agreement

Only if applicable or if the company has issued a Personnel Secondment Agreement.

18. Visa, permits, and access cancellation

The cancellation of visas, permits, and access must be carried out by the appointed company liquidator.

19. Liquidation Report

This only applies to companies. The Liquidation Report has to be from the appointed Meydan liquidator of the Board. The required document is the original copy of the Liquidation Report. If the document comes with a financial statement from the last financial year, the company director or shareholder must sign the financial statement.

If you don’t have both the knowledge and experience in the implementation of existing procedures on how to close a company in the Meydan Free Zone, it’s advised to seek the expert guidance of Meydan liquidators such as Farahat & Co. Contact us today for more tailored advice on company liquidation in Dubai!

Read More : Company Liquidation in Dubai Silicon Oasis.