Liquidation of companies in UAE law:
The provisions of commercial companies within the United Arab Emirates are governed by Federal Law No. 2, which deals with all matters of liquidation of companies in the UAE law in various legal capacity, where the first chapter of the law includes the provisions and policies of establishing companies, while the second chapter deals with everything related to the liquidation process, and the provisions followed by it regardless of the legal status of the company, and the following we will learn through the following paragraphs about all the circumstances and provisions of the liquidation of companies within the UAE market.
تصفية الشركات في القانون الإماراتي
Statistics on the liquidation of companies in Dubai:
Despite the commercial leap that Dubai has recorded over the past ten years, with the Ministry of Economy announcing the growth of the number of registered companies by 52% belonging to more than 114 nationalities from different countries of the world, there is a swing percentage of the total number of companies liquidated following each year.
What are the top 3 steps to liquidate core companies?
H A M provides a corporate liquidation service in the UAE with a methodology that includes three basic steps, carried out by an integrated team of audit and business consulting experts, and our experts aim to complete the liquidation process with the least possible losses for the company, where the team meets to develop the appropriate liquidation strategy for the current situation of the company, and then decide on the following three steps of liquidation:
First Step: Adoption of the decision to dissolve the company:
The first step in the procedures of liquidation of companies is the legal adoption of the decision to dissolve and liquidate the company, whether the liquidation is compulsory or optional, it is necessary to prepare the minutes of the general assembly meeting to adopt the liquidation decision and appoint the legal liquidator, and then notify the concerned authorities about the liquidation and the procedures are as follows:
- General Assembly meeting to cancel licenses in principle and appoint a legal liquidator.
- Ratification of the letter of acceptance of the legal liquidator to work on the liquidation of this company.
- Fill out the company's liquidation form and submit it to the concerned authorities.
- Issuing permission from the Department of Economic Development to dissolve the trade license.
- Announcing the liquidation of the company in two official newspapers in Arabic, and waiting for 45 days as an advertising period..
Second Step: Appointment of the Legal Liquidator:
The legal liquidator begins his work on the first day of the calendar month after completing all the procedures related to the announcement of the decision to dissolve the company, and the empowerment of all documents of the company, and then becomes the sole legal representative of the company while keeping its legal status valid until the completion of all liquidation works.
The liquidator exercises all his legal responsibilities according to the status of the company until all its existing business dealings are settled, all its profits and debts are counted, and then the third and final stage begins.
Third Step: Erasing the Company's Registration:
The procedures for clearing the company's registration include the fulfillment of the following reports and approvals:
- Prepare the final or final report of the company.
- Cancellation of the establishment card from the Ministry of Labor.
- Revoke the residency of workers and partners from the Ministry of Human Resources and Emiratization.
- Approval of all government agencies regulating the company's activities.
- Approval of the Ministry of Economy and the Securities and Commodities Authority.
- The approval of the Department of Economic Development to erase the company's registration.
- Issue a payment permission to obtain a certificate of erasure of the company's registration.
تعرف على: التصفية القضائية للشركات
