Business Setup & Formation
Company Liquidation
Liquidation is the process through which a company whether an LLC, sole proprietorship, Dubai Free Zone company, or other entity ceases its operations, and its assets are distributed among creditors and shareholders of the registered UAE company. It is sometimes referred to as winding up or dissolution, with dissolution typically describing the final stages of the liquidation process. In Dubai, UAE, liquidation becomes necessary if a company lacks sufficient liquidity to continue daily operations, fails to pay its employees, or commits a legal violation, prompting the relevant UAE authority or Free Zone office to initiate proceedings to halt the company’s activities.
There are differences between liquidating a Free Zone company and a Mainland Dubai company. For Free Zone companies, the process requires approval from the company’s Board to sell or close the business, and all procedures must follow the Free Zone’s guidelines, including a 45-day public notice period for any objections. In Mainland Dubai, the company must pass and notarize a Board Resolution to close or transfer the LLC and its trade name. Additionally, clearances are required from government authorities such as DEWA, Etisalat/DU, RTA, banks, and the Departments of Labor and Immigration. A similar 45-day public notice is needed, after which the NOC is submitted to the Department of Economic Development. Overall, the process typically takes around 70 to 80 days.
DESCRIPTIONS
Liquidation Audit Report & Appointment Confirmation of Liquidator
Initial Liquidation Approval (DED)
Final Liquidation Approval (DED)
Publication in Arabic and English Newspapers (45 days)
Aurion Professional Services including 5% UAE VAT
Complete Cost of LLC Company Liquidation
FEE in AED
AED 3,000
AED 2,020
AED 3,030
AED 1,575
AED 5,250
AED 14,875