Company liquidation in the UAE involves closing a company and settling its liabilities in accordance with local laws and regulations. Below are the main steps typically involved in company liquidation in the UAE:

1. Board Resolution
- Pass a board resolution or partners’ resolution to liquidate the company, signed by all shareholders.
- If applicable, notarize the resolution, especially for offshore or free zone companies.
2. Appointment of a Liquidator
- Appoint a licensed liquidator approved by the relevant authority.
- Obtain a liquidation letter or certificate from the liquidator to begin the process.
3. Notification of Relevant Authorities
- Inform the relevant licensing authority (e.g., Department of Economic Development (DED) for mainland companies, or the specific free zone authority for free zone companies) about the decision to liquidate.
- Publish a liquidation notice in at least two local newspapers (in Arabic and English) for public notification. This is required to allow creditors to come forward with any claims.
4. Settle Liabilities
- Clear All Outstanding Debts: Pay off creditors and settle all financial obligations.
- Close Bank Accounts: Cancel company bank accounts after ensuring there are no pending transactions.
- Clear Employee Dues: Pay employees any outstanding salaries, end-of-service benefits, and provide them with a formal termination letter.
- Cancel Utilities and Leases: Settle utility bills and cancel rental agreements.
5. Clearances from Authorities
- Obtain clearance from relevant government departments, including:
- Immigration (to cancel visas)
- Ministry of Human Resources and Emiratisation (MOHRE) to cancel labor cards
- Tax authorities (Federal Tax Authority) for VAT deregistration (if applicable)
- Municipality or free zone authority clearances
6. Asset Distribution
- Distribute any remaining assets among shareholders according to the memorandum of association (MoA) or applicable laws.
7. Cancel Trade License
- Submit all required documents (e.g., clearance certificates, liquidation report, and board resolution) to the licensing authority.
- Cancel the trade license officially, marking the company as closed.
8. Final De-registration
- Obtain a de-registration certificate from the licensing authority.
- Ensure all processes are documented and filed for future reference.
Key Considerations:
- Timeline: Liquidation typically takes 2-3 months, depending on the complexity of the company structure and liabilities.
- Legal Compliance: Adherence to UAE Commercial Companies Law and relevant free zone or offshore regulations is mandatory.
- Tax Matters: Ensure that all tax returns are filed, and VAT registration is canceled if applicable.