How To Wind Up a Company In UAE (Liquidation)
Wind up the Company (Liquidation)
There are freezone, offshore and mainland companies available. There are multiple ways to close the company although it become inactive over a period of time. We recommend to wind up the company if it is not in use for avoiding complications in the future.
When to close the company?
The company can close any time but it will not be waived from fee’s to government. If company holds any visa, it is required to cancel in order to complete the process of cancellation or liquidation of the company. We recommend to cancel or renew the company on its expiry if the company has visas linked in it, to avoid legal proceedings by the government. This is purely part of social security measures.
Who can cancel the company?
Preferably an experienced business consultant can liquidate or wind up the company. A consultant will normally appoint a registered liquidator to finalize the formalities followed by the news paper advertisement.
What is the fee of a liquidator?
The fee of the liquidator is decided on the volume of the works to be executed. A free zone company will have minimum requirements of an auditor but a company in the mainland has got vast requirements and additional fee to be charged. However, it can be negotiated and Danburite has a division to take care of your liquidation matters.
What is the duration of a company liquidation?
The maximum it takes 45 to 50 days if other requirements and formalities are executed on time. A freezone will have one window solution to close the company whereas the mainland company have its clearances from multiple departments which are in various locations.
Also Read: Formalities For Free Zone Company Liquidation
Does an offshore company require to close, if not active?
The offshore company automatically gets strike off from the system if it is inactive over a period of time. Since the visas are not linked with the company it is not important to bother about this solution.
What is the fee of winding up the company?
Dubai DED charges 5030 AED as the cancellation fee. Sharjah Airport Freezone charges 5800 AED, Dubai South Freezone charges 8600 AED etc.