Company Liquidation in Dubai with Full Legal Compliance
Backed by 10 years of experience, we handle complex company liquidations in Dubai with precision, preparing audits, securing clearances, and delivering compliant exits across mainland, free zone and offshore structures. Speak with our specialists to make your business closure smooth and risk free.
Guiding Companies Through Smooth and Compliant Liquidations
At Capital Plus Auditing of Accounts, we help businesses exit the UAE market with confidence and clarity. With a team of 15 experienced professionals, over 100 successful liquidations, and coverage across more than 20 free zones, we provide trusted support where precision and compliance are critical.
Liquidating a company involves more than shutting down operations. It requires final audits, VAT deregistration, employee settlements, and clearances from government entities including labor, immigration, and licensing authorities. We handle every step with focus and care, giving business owners the freedom to move forward without unnecessary delays or legal complications.
Company Liquidation Process in Dubai
The liquidation process varies between mainland and free zone companies, each with its own specific requirements. Here’s a concise overview of the key steps involved.
Shareholders’ Resolution
For Free Zone companies:
the resolution must be drafted, approved by stakeholders, and submitted to the respective authority (e.g., JAFZA, RAKEZ).For Mainland companies:
the resolution must be notarized by the UAE sponsor. If shareholders are abroad, it requires attestation from the UAE Embassy and Ministry of Foreign Affairs.Appointment of a liquidator
Free zone companies:
Keep in mind that the relevant UAE free zone authorities must approve the liquidator for the free zone.Mainland companies
Appoint the liquidator and submit his formal acceptance letter to the relevant authorities.Publication of Notice
Free Zone companies,
For Free Zone companies, the respective authority decides the publication method, whether in an official journal or local media.Mainland companies
For Mainland companies, a notice must be published in two local newspapers (one Arabic, one English), allowing creditors 40 days to submit claims.Settling Liabilities and Debts
Mainland companies:
must clear all debts, settle with suppliers, and cancel active contracts.Free Zone companies:
must comply with specific regulations (e.g., DIFC laws), including final settlements and notice periods for employees.Cancellation of Employee Visas and Work Permits
Mainland companies:
must cancel residency visas through immigration, revoke MOHRE labor cards, and settle end-of-service dues.Free Zone companies:
handle visa cancellations through the free zone authority, along with obtaining No Objection Certificates confirming all employee obligations are cleared.VAT Deregistration and Tax Clearance
Mainland companies:
must apply for VAT deregistration with the FTA, clear all dues, and obtain a Tax Clearance Certificate.Free Zone companies:
must follow specific zone regulations to complete the VAT deregistration and receive clearance.Government Authority Clearances
Mainland companies:
must obtain clearances from utility providers and the RTA for company vehicles.Free Zone companies :
may need additional NOCs from internal authorities, such as customs.Final Liquidation Report
Mainland companies :
must submit the liquidator’s final report to the Department of Economic Development (DED).Free Zone companies:
submit the report to their respective authority (e.g., RAKEZ, JAFZA, DIFC) for verification and closure.License Cancellation and Clearance Certificate
Mainland companies:
receive a clearance certificate confirming the company’s official liquidation.Free Zone companies:
have their license cancelled by the respective authority, marking the end of the liquidation process and removal from UAE records.Documents Required for the Liquidation of a Company in Dubai
General Company Documents
Trade license. Memorandum of Association (MOA) and Articles of Association (AOA). Certificate of Incorporation or Formation. Shareholder resolution approving liquidation (notarized and attested if applicable). Power of Attorney (if applicable).
Financial Documents
- Audited financial statements (up to the liquidation date).
- Bank closure statement or certificate confirming account closure.
Tax and Clearance Certificates
- VAT & CT deregistration certificate from the Federal Tax Authority (FTA).
- Clearance certificates from utilities and other service providers.
Employment and Visa-Related Documents
- Employee visa cancellation proof (for all employees under the company).
- Labor and immigration clearance certificates.
Free Zone-Specific Documents (if applicable):
- Clearance certificates from the respective free zone authority.
- Lease cancellation confirmation from the free zone.
Liquidator-Related Documents
- Liquidator’s appointment letter.
- Liquidation report prepared by the appointed liquidator.
Miscellaneous Documents
- Proof of settlement of outstanding debts or obligations.
- NOC (No Objection Certificate) from relevant authorities or stakeholders, if required. Company stamp (for cancellation).
Why Is Liquidation in Dubai Critical When Closing a Business?
Hiring and liquidating a business is necessary to avoid future regulatory and legal complications. By seeking professional help from liquidating firms, you can reduce the risk and make the process efficient.
Legal consequences result in noncompliance penalties
Regulatory authorities may impose fines when a company disregards the legal procedures.
Unresolved Financial Obligations Lead to Debt Accumulation
Without the proper debt settlements, liabilities could continue to grow and impact the business credits.Further unpaid salaries can lead to disputes and legal claims.
Assets lose their value if not managed properly.
If the assets of a company do not liquidate in an organized manner, they may lose their value. This could potentially result in disagreements among the involved parties.
Delayed Business Closure
Improper liquidation can cause delays in deregistration while finalizing the closure process with relevant authorities. Further lingering business operations may result in an accumulation of rent, utility bills, and license renewal fees.
Types of liquidation
Compulsory liquidation
The court typically orders compulsory liquidation when a creditor doesn't receive payment. It occurs when the company is insolvent and unable to pay off its debts.
Voluntary Liquidation
The company's shareholders or directors typically initiate voluntary liquidation for various reasons. It depends on the wishes of owners to liquidate a company.
Company Liquidation Process in Dubai
The liquidation process differs significantly between companies located in free zones and those located on the mainland. Both types of liquidation come with their own specific requirements. Here is the detailed overview of the process of liquidation.
Shareholder’s resolution
Free zone companies
All the stakeholders would draft and approve the resolution in a meeting. For the free zone companies, the resolution must be submitted to the authorities of the free zone, such as JAFZA or RAKEZ authorities.
Mainland companies
The UAE national sponsor or agent must notarize the resolution for the mainland. If the shareholder is not present in the country, the UAE embassy and the ministry of foreign affairs must attest the document.
Appointment of a liquidator
The UAE laws mandate the appointment of a liquidator for a company’s liquidation.
Free zone companies
Keep in mind that the relevant UAE free zone authorities must approve the liquidator for the free zone.
Mainland companies
Appoint the liquidator and submit his formal acceptance letter to the relevant authorities.
Publication of the notice
Free zone companies
The specific authority of the free zone determines the publication of notices for companies operating within its boundaries. For instance, the free zone authority determines whether to publish notices in an official journal or in the local media.
Mainland companies
For mainland companies, the liquidation requires publishing a notice in two local newspapers, one Arabic and one English. The purpose of this notice is to notify the creditors that they have 40 days to present their claims.
Settling liabilities and clearing debts
In free zone companies
In free zones such as Dubai International Financial Centers (DIFC), the companies must follow the DIFC employment laws that include the final settlement and notice periods.
In mainland companies
For mainland companies, they must settle all their outstanding debts to creditors and suppliers. Additionally, it is mandatory to cancel any ongoing contracts.
Responsibilities of a liquidator
Identification of a company's assets:
The liquidator identifies the assets, such as property, equipment, and intellectual property.
Sale of the assets
These assets will then be sold to raise the funds for the debt settlements. The liquidator will ensure that these debts are paid in accordance with the importance of payment.
Clearance of Employee Dues
Liquidators are responsible for ensuring that all the employee dues are cleared before the company is officially dissolved.
Audit Report
The audit report is then prepared by the auditor detailing the liquidation process, such as asset sale, debt settlement, and clearance.
Our Service Areas in Dubai
Free Zone Areas
Our expertise covers Dubai’s major free zones, including:
- Dubai Airport Free Zone (DAFZ)
- Jebel Ali Free Zone (JAFZA)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Dubai International Financial Centre (DIFC)
- Dubai Healthcare City (DHCC)
- Dubai Internet City (DIC)
- Dubai Media City (DMC)
- Dubai Design District (d3)
- Dubai Production City (DPC)
- Dubai Science Park (DSP
Mainland Areas
Our expertise covers Dubai’s major mainland areas, including:
- Business Bay
- Deira
- Bur Dubai
- Sheikh Zayed Road
- Al Quoz
- Jumeirah
- Al Karama
- Dubai Marina
- Al Barsha
- Ras Al Khor
- Al Qusais
The top-rated Business Setup Consultancy in the UAE
Frequently Asked Questions
During liquidation the company ceased its operation and was no longer allowed to continue functioning.
Regarding the company debt during the liquidation process, the liquidators sell off assets to pay outstanding debt. If there are insufficient funds, some debt may remain unpaid, and creditors may not receive the full amount.
For the employee during the liquidation process, the company must settle all the employee dues; that includes salaries and end-of-service benefits.
The liquidation certificate is a final step indicating that the legal, financial, and operational matters have been handled.
If you are a creditor, you can file for the company liquidation in Dubai by taking legal actions through Dubai courts. In case of insolvency, the court will appoint a liquidator to handle the process.
There is no reverse to the liquidation process; you would need to go through the entire company formation process.
