Question 1

Q-1. How do I put a company into voluntary liquidation?

Accepted Answer

To start voluntary liquidation in the UAE, shareholders must pass a resolution and appoint a registered liquidator.
Key Steps:

Pass a board/shareholder resolution.
Appoint a licensed liquidator.
Notify relevant authorities (e.g., DED or free zone).
Publish public notice of liquidation.
Clear liabilities and government dues.
Obtain final deregistration certificate.

Question 2

Q-2. What does "liquidating a company" mean in simple terms?

Accepted Answer

Liquidating a company means closing it down legally. The company sells all its assets, pays off debts, distributes any remaining funds to shareholders, and is then removed from the commercial register, ending its legal existence.

Question 3

Q-3. What happens when you liquidate a company?

Accepted Answer

Liquidation involves winding up all business affairs. Assets are sold, creditors and employees are paid, licenses are cancelled, and leftover funds (if any) go to the owners. Once everything is complete, the company is deregistered from the official records.

Question 4

Q-4. How do I liquidate a limited company in the UAE?

Accepted Answer

Whether your company is mainland or free zone, liquidation follows a legally structured process.
Core Requirements:

Board/shareholder resolution.
Appointment of a certified liquidator.
Notification to regulatory bodies (DED, MOHRE, FTA).
Clearance of taxes, leases, and utilities.
Issuance of final cancellation certificate.

Question 5

Q-5. What does liquidation mean for a small business owner?

Accepted Answer

For small business owners, liquidation is the formal process of shutting down a company legally. It ensures all debts are cleared, liabilities are addressed, and the business is officially closed, protecting the owner from future claims or penalties.

Question 6

Q-6. When does a company go into liquidation?

Accepted Answer

A company may enter liquidation voluntarily (by choice) or compulsorily (by court order). Voluntary liquidation happens when owners decide to close; compulsory liquidation usually results from insolvency and is initiated by creditors through the courts.

Question 7

Q-7. Can I liquidate my company myself?

Accepted Answer

No, UAE law requires appointing a licensed liquidator to handle company liquidation. Due to regulatory, legal, and financial obligations involved, self-liquidation isn’t allowed. A liquidator ensures the process complies with all UAE authority requirements.

Question 8

Q-8. What is the company liquidation procedure in the UAE?

Accepted Answer

Liquidation is a regulated legal process. You cannot handle it independently without a registered liquidator.

To comply with UAE laws.
To prepare and submit audited reports.
To coordinate with government departments.
To avoid legal risks and delays.

Question 9

Q-9. How much does it cost to liquidate a company in the UAE?

Accepted Answer

The cost of liquidating a company in the UAE varies based on the business jurisdiction (Mainland, Free Zone, or Offshore) and outstanding obligations.

Liquidator’s fee (AED 5,000 to AED 15,000+)
Newspaper announcement (approx. AED 1,000–1,500)
Government clearances (e.g., DED, FTA, MOHRE)
Audit report (if required)
Visa cancellation and lease termination

Estimated Range: AED 8,000 to AED 25,000+, depending on complexity.

Question 10

Q-10. Do I need to cancel employee visas before liquidation?

Accepted Answer

all employee and partner visas must be cancelled before final company deregistration. This is mandatory across all UAE jurisdictions (Mainland or Free Zone).
Key Steps:

Cancel work permits through MOHRE or the relevant Free Zone portal.
Provide final settlements and gratuity to employees.
Ensure visa cancellation is reflected in the immigration system.
Submit clearance certificates from Labour and Immigration departments.

Failure to cancel visas may result in penalties or delays in the liquidation process.

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