Liquidation of a company in the UAE

A very common situation is that company owners no longer need them and simply abandon the business. They think that if they just don't renew the license, there will be no problems. Such companies remain inactive for several years. As a result, the businessman becomes a debtor to the state. It is better to prevent this situation right away. We will tell you how to say goodbye to your business in the UAE in the right way. We have sufficient experience in dealing with such issues.

Liquidation of a company in the UAE. Reasons why it is better to close a business

It is no secret that businesses are often opened in the Emirates only to obtain a resident visa. A company license is issued for a year, while a visa is issued for 2-3 years.

Therefore, if you do not renew your license, you may end up with a police case. No one wants this in a foreign country, you must admit. It is best to solve the issue correctly. Do you not need the company? Close it down or extend the license for a visa. There is no third option.

You can't just close the office doors, pay off your debts, and that's it. This process has many stages. It is mandatory to notify the press first of the intention to close the company, and then of its complete liquidation. This is what Emirati law provides for.

For those who have never encountered this procedure before, going through it on their own often turns into a challenge. However, there can be many reasons for the decision to close a business. The most common ones are:

• unprofitable business;
• change of place of residence;
• family circumstances.

Liquidation of companies in the UAE is profitable

It is possible to close a company in the UAE inexpensively. It will be less expensive than the consequences that will occur if the company is simply "forgotten". It is better not to take any risks. Moreover, the specialists of our company Regservice will find an individual approach to each client. They will draw up an action plan that will allow you to quickly part with a business in the Emirates that turned out to be unnecessary.

As a rule, the cost of liquidation starts from USD 550. In some cases, the fee can reach 2500 dollars. The duration of the liquidation process varies: usually from 1 month to six months.

Factors affecting the speed of liquidation of a company in the UAE:

• whether there is a fixed office;
• how many accounts are opened and in which banks.

It takes time to close each employee's visa and bank accounts. The office is disconnected from electricity and water supply by contacting the relevant companies.

How does the process of liquidating a company in the Emirates look like in stages?

The announcement of the start of the company's liquidation must be published in a newspaper after all these preparatory measures are completed. There are 2 weeks to accept claims from third parties, after which an announcement is published again that the company has been finally liquidated.

A meeting of shareholders and a decision to close the company by voting is mandatory. After the meeting, a special liquidation plan is developed.

Then comes the settlement with everyone you owe:

• utilities
• employees
• suppliers;
• government agencies.

After that, the company's assets are returned to shareholders. An audit of the company is also required before its final liquidation.

Please note: the conclusion that the company has no debts is given by the director. It is mandatory!

In addition, it is necessary to hire a special person to handle the liquidation. This person should not be connected with the company in any way!

Make the right decision: do not carry out a difficult procedure on your own.

What about deadlines?

If you have a virtual office, you can do it in 1 month and sleep well knowing that you don't owe anyone anything. It's worth the time and money to close the company properly. Otherwise, there is a risk of remaining a debtor to the Emirates. And this is not a 3-year limitation period, like in Ukraine, but 10 years.

If you have debts, you will not be able to do business again in the UAE. You won't be able to open a new company or change the field of activity. You have to pay off your liabilities first.

If you are in debt, it will be difficult to obtain a visa and enter the country. Therefore, we urge you to check whether the liquidation is fully formalized.

What is better: to close a company in the UAE or to sell it?

At first glance, the sale option seems very attractive. But let's see if there are any risks. As with us, a change of ownership entails the transfer of liabilities to the new owner.

This involves a lengthy process of analyzing your business by a potential buyer. It takes some time, as a rule, it is not possible to sell a company in the UAE in one day.

The only thing that is required of you is to notify the bank that another person now has all the rights to the company. All information should be reflected in the bank's system. You should definitely control this so that there are no claims against you.

Usually, changing the owner of a company in the UAE takes about 10 days, but it can take a little less or a little longer.

The most difficult part, just like in Ukraine, is interaction with regulatory and registration authorities. Despite the fact that the procedure is constantly being simplified, the Emirati authorities do not yet have a goal to make it a one-day procedure. So you will have to be a little patient.

With the right approach, by contacting a professional registration service, you can reduce the risks to virtually 0. Contact a RegService specialist by phone, website or email and get professional advice. Liquidation of a UAE company is easy. You should not put it on the back burner, and then the closure of a business in the Emirates will certainly have a happy ending, without debts and problems.

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