Company liquidation comes into the arena when a company can no longer perform its business operations and decides to quit their business methods, which is why it is also called as winding up of business. In order to pay their debts or liabilities, there is a need to sell their assets, while going through this process. The shareholders of the company take the money left, after selling the assets.
Before liquidating your company there are certain processes to be completed.
• Paying all the bills- utility bills and telecommunication bills.
• Closing the bank accounts and canceling all visas under the license.
• Creating a final audit report.
What are the initial documents to be submitted for the liquidation of a company?
• License copy of the company.
• Passport copy and resolution of the shareholders.
• With all the necessary changes the memorandum of association copy.
• An application form with deregistration.
• Emirates ID copy.
To receive the liquidation certificate, you will have to wait after submitting the necessary documents along with the initial payment. Later the liquidation certificate will be issued by the Department of Economic Development. After this, you can proceed to advertise in the newspaper.
In order to freeze a license:-
You should provide:
• A letter from the company, which should include a request to stop the licensing temporarily.
• The report collected from the inspection division in DED.
• Indicating the absence of sponsored people on the license, a letter from the Ministry of Human resources, and Emiratisation.
Notifying the free zone authority in advance is what you should do, for closing a company. Later it should be published in the newspaper and then cancel your employees’ visa, work permits, and bank account. Finally, you will obtain the official termination letter of the free zone authority.