A firm's directors may decide that voluntary liquidation is in the best interests of the company or a bigger group and may initiate voluntary liquidation processes to wind up and terminate a corporation without the intervention of a court
A voluntary liquidation of a UAE LLC is the orderly winding down of a Limited Liability Company, ensuring that all creditors are satisfied, all employee visas against the licence are cancelled, and all UAE government licences are ter
minated.
The processes necessary to liquidate an LLC in the UAE are detailed below - this process includes the procedure for the liquidation of an LLC in Abu Dhabi or Dubai mainland, as well as Free zone firms.
Process of voluntary liquidation in line with the Companies Memorandum of Association (MOA)
To shut an LLC in the UAE, you must first confirm that either the business's shareholders or their Power of Attorney, who has been authorised and certified to sign the Shareholder Resolution to close the company, are present in the
UAE. A Board Resolution or Shareholder Resolution must be approved by all shareholders of the business at a general meeting in order to agree on the decision to liquidate the firm and a liquidator to be appointed (please refer to our article here on engaging a liquidator). A board resolution must be written and notarized by a Notary Publi
c in the UAE.
The corporation will subsequently be forced to apply to the Department of Economic Development to terminate the trade licences (DED). Following the filing of a cancellation request with DED, the following actions must be taken:
Clearance from the Labour and Immigration Departmen
t - All work permits and visas for all workers and partners of the firm must be terminated. After that, the Labor and Immigration files, as well as the eChannel (Abu Dhabi) / eDNRD (Dubai) systems, may be closed for the LLC.
Third-party clearances - All licences, including Telecom Authority (DU or Etisalat), Electricity and Water Departments, as well as the lease agreement with your Landlord and Municipality clearance for your office space - Ejari (Dubai) or Tawtheeq, must be closed and final closure letters received (Abu Dhabi).
Bank account closure - All UAE bank accounts must be closed, and each bank must acquire a final closure letter.
Copy of newspaper report - The liquidation must be advertised in at least two Arabic newspapers or gazettes. This necessitates a 45-day advertising term in Abu Dhabi. In both Dubai and Abu Dhabi, the gazette liquidation procedure is filed using the DED system.
Liquidator report - Audited accounts must be produced with the liquidator during this time and submitted to the DED as part of the closure. During this time, any creditors must be dealt with and resolved.
Licence Cancellation Certificate - The Closure Certificate may be received after all final closure documentation have been submitted to the DED and approved.
More information about the practical actions necessary to deregister a branch in the UAE may be found here.
Please see our page here for more information about debt restructuring and liquidation in the UAE.
How may TVG Management Consultancy assist you?
TVG Management Consultancy can help you with the practical actions, procedures, and PRO work necessary to shut down and voluntarily liquidate an LLC Company in Dubai, Abu Dhabi, and throughout the UAE.
We may collaborate closely with your legal counsel and appointed liquidator, if necessary, to guarantee an orderly and cost-effective procedure in winding down the firm and closing all visas and licences.
If you require assistance with this or any other related company formation, restructuring, or local partner matters in Abu Dhabi, Dubai, the wider UAE, Oman, or Qatar, please contact us at +971 43400153 or email us at info@tvgconsultancy.com.