Company Liquidation Services in the UAE

Shutting down a business is often complicated. But it doesn’t have to be with the right company liquidation service in the UAE to help you.

This guide will explain in simple terms:

• Why companies close in the UAE
• Step-by-step process of liquidating
• Costs involved
• How to make it hassle-free

So if you need to dissolve your UAE company, use this guide to understand what’s involved.

Reasons Companies Close in the UAE

Many companies big and small choose to cease operations in the UAE every year. Some common reasons include:

• Financial Losses – It’s tough running a profitable business in this competitive market. Some companies accumulate big losses that eventually force them to close.
• License Cancellation – If companies fail to renew licenses and permits on time, the authorities can revoke them – leaving no option but to liquidate.
• Relocation – Some companies move their operations out of the country due to corporate restructuring, cost-cutting or other strategic decisions.
• Ownership Disputes – Conflicts between partners on financial, management or other issues can derail the company, making liquidation unavoidable.
• Dormant Firms – Owners choosing to liquidate inactive companies that are just incurring annual renewal costs.

Step-by-Step Process of Company Liquidation

The process of closing a company involves several regulated steps:

• Appoint a Liquidator – An accredited professional liquidator must be appointed to oversee the process.
• Apply to Regulators – The appointed liquidator will submit the liquidation application to Department of Economic Development (DED).
• Notify Creditors – All creditors with outstanding dues must be formally informed about the decision to liquidate.
• Settle Liabilities – Any payables like loans, supplier bills, staff dues or other liabilities must be settled.
• Liquidate Assets – Any assets must be valued and liquidated. Proceeds are used to clear additional liabilities.
• Distribute Remains – If any surplus funds or assets remain after payments, they must be returned to shareholders as per ownership percentage.
• Obtain No Dues Certificate – Once the Department of Economic Development verifies everything is settled and completed, they will issue a no objection certificate.
• Remove Trade License – Finally, the company’s trade license is cancelled and name removed from DED’s registry.

Costs Involved in Closing a UAE Company

Liquidating a company in UAE comes at a cost including:

• Liquidator Fees: Accredited liquidators charge a professional fee for their services.
• Payables and Dues: Any pending payments to suppliers, lenders, staff etc. must be cleared.
• Fines: Penalties may apply if any license or compliance requirements were violated.

How We Simplify Company Liquidation

At Horizon Biz, our team makes shutting a company hassle-free through:

• Legal Expertise: Our qualified legal consultants have handled 100+ liquidations. We know all procedures inside-out.
• Smooth Process Handling: We liaise with all governmental departments and manage the full liquidation process end-to-end.
• Correct Documentation: We ensure all paperwork is thoroughly completed as per regulations.
• Penalty Avoidance: By ensuring no delays or violations, we prevent fines that increase your costs.
• Affordable Costs: Our transparent pricing and service quality make liquidation affordable.

Let our decade strong experience handle your company liquidation professionally while you focus on more pressing matters.

Conclusion

Liquidating an underperforming or disputed company may be painful but necessary. By selecting a specialist like Horizon Biz with extensive experience in UAE company liquidations, you can ensure it is done properly, cost-effectively and free of hassles. To get started on closing your UAE firm, contact us today for a free consultation.

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