Company Liquidation

Complete Guide: Company Liquidation in the UAE

Introduction

Company liquidation is the official process of closing a business in the UAE, which involves clearing liabilities, cancelling licenses, visas, and registration records across all relevant government entities. Whether the business is in Dubai Mainland, a Free Zone, or Offshore, following the proper steps ensures legal closure and protects business owners from future penalties.

Brightlink Consultancy offers full-service company liquidation support—ensuring a compliant, smooth, and timely closure of your business operations.

Types of Company Liquidation

• Voluntary Liquidation: Initiated by shareholders or directors when the company chooses to close down (e.g., due to strategic shifts or financial decisions).
• Involuntary Liquidation: Mandated by a legal authority or court order due to insolvency, regulatory violations, or legal claims.

Why Company Liquidation Is Important?

• Avoids heavy fines and penalties for non-renewal or non-compliance
• Releases all business liabilities, government obligations, and partner duties
• Cancels visas, trade licenses, and labor records in a lawful manner
• Enables future business operations or re-registration with a clean record
• Prevents legal complications for shareholders and company owners

Step-by-Step Company Liquidation Process

For Dubai Mainland Companies:

1. Board Resolution
   • Prepare and notarize a resolution from shareholders agreeing to liquidate the company.
2. Appointment of a Liquidator
   • Assign an approved auditing or liquidation firm and issue an official appointment letter.
3. Initial DED Application
   • Submit the initial liquidation request to the Department of Economic Development (DED).
4. Liquidation Notice in Newspaper
   • Publish a 45-day notice in two Arabic newspapers to inform creditors and allow claims.
5. Clearances & Cancellations
   • Cancel all visas (partners, employees), labor cards, and establishment cards.
   • Settle utility bills, office lease (Ejari), bank accounts, and any outstanding dues.
6. Final Audit Report & Liquidator’s Letter
   • Submit the final audit and clearance report from the appointed liquidator.
7. Final Submission to DED
   • Submit all final documents to DED and receive the official License Cancellation Certificate.

For Free Zone Companies:

1. Resolution to Liquidate
   • Pass and submit a board resolution to the free zone authority.
2. Clearances
   • Cancel visas, leases, and settle accounts with the free zone, utility providers, and banks.
3. Asset & Employee Settlement
   • Ensure all employee dues and asset transfers are completed.
4. Final Approval
   • Submit required documents to the free zone authority and receive cancellation confirmation.

Note: Each free zone may have its own specific requirements and timelines.

Required Documents

• Trade license copy
• Passport copies of shareholders
• Memorandum of Association (MOA)
• Emirates ID & visa copies
• Clearance letters (Etisalat, DU, DEWA/SEWA/ADDC, landlord, etc.)
• Liquidator’s final report (for mainland)
• Newspaper publication receipt (mainland only)
• Board resolution to liquidate

Estimated Timelines

How Brightlink Consultancy Helps

Brightlink provides comprehensive liquidation support, including:

• Drafting and typing all resolutions and requests
• Coordinating with DED, MOHRE, GDRFA, free zones, and utility providers
• Managing visa and labor file cancellations
• Working with registered liquidators to prepare audit reports
• Handling newspaper notices and document submissions
• Ensuring end-to-end compliance for a smooth business exit

Conslusion:

Proper company liquidation is not just a legal formality—it’s a critical step in closing your business responsibly. Whether you’re wrapping up operations or planning a new venture, Brightlink Consultancy ensures that every requirement is fulfilled quickly, accurately, and legally.

📞 Need to close your company in the UAE? Contact Brightlink Consultancy today for a smooth and compliant liquidation process.