Voluntary company liquidation in Ajman Media City is the best exit strategy available for businesses operating within the free zone. The process of company liquidation in the UAE is considered a robust exit strategy as it allows the business owners to satisfy all the stakeholders involved including the employees. Moreover, it eliminates the risks involved in compulsory liquidation or abandoning the company. However, appointing the best company liquidators in Ajman is the most vital step in winding up a company licensed by the Media City free zone authority. Read the following article to know the latest steps and requirements to wind up a company in Ajman Media City free zone:
Board Resolution for Liquidation
Passing a board resolution is the first mandatory step in winding up a company in Ajman Media City. The board resolution for company liquidation in Ajman Media City should be signed by all the directors or shareholders. The resolution must state the reason for winding up the company and all the shareholders or directors should sign it before submitting it to the Registrar.
Appointment of a Liquidator
A liquidator must be appointed to carry out the winding up of the company. Company liquidators in Ajman can be any audit firm with a valid license to carry out its activities in the country.
Letter of Acceptance from Liquidator
The liquidator should send a letter to the free zone Registrar, confirming his willingness to take charge as the official liquidator for the company. The letter should also mention the name and address of the liquidator.
Cancellation of Visas and Establishment Card
The company should cancel all the visas under its sponsorship while initiating the process of liquidation in Ajman Media City. Similarly, the company should ensure its Establishment Card is also cancelled.
Clearance Letter from Bank
Most companies in Ajman Media City may have an active corporate bank account under their name. However, the bank account should be closed at the time of company liquidation in Ajman Media City. Business owners should not forget to obtain an account closure letter from the bank.
Clearance from Authorities & Service Providers
Company liquidation in Ajman Media City will not be complete without clearance letters from certain government departments, authorities and service providers. The most important of them are given below:
- Ajman Customs
- Telecom provider (Etisalat /du)
- Emirates Post (if the company has a P.O. Box)
Return Original Documents
The company under liquidation should return all of the original documents it obtained at the time of incorporation. Some of these documents include the Articles of Association, Memorandum of Association (MoA), Shares Certificate, Lease Agreement etc. If the company has rented any premises, it should return the keys to the relevant department in the free zone.
An advertisement about the liquidation must be published in Arabic and English newspapers. There will be a lock-in period of 15 days during which creditors or other parties can raise any claim. Any claim made after the grace period will not be entertained by the Ajman Media City Authority.
Apply for VAT Deregistration
VAT registrant companies undergoing liquidation in Ajman Media City must apply for deregistration within the deadline set out by the Federal Tax Authority (FTA). The application for VAT deregistration should reach the FTA within 20 days of the cessation. Companies failing to comply with this regulation will incur a penalty of AED 10,000. Company liquidators in Ajman suggest business owners not forget this crucial requirement as they will be struggling with delays and penalties while winding up their firm.
Meet Economic Substance Requirements
An Ajman Media City company undergoing liquidation will be subject to Economic Substance Regulations (ESR) if it has conducted any of the nine Relevant Activities. The nine Relevant Activities are Banking business, Insurance business, Lease-Finance business, Investment Fund Management business, Holding Company business, Headquarters business, and Shipping business, Intellectual Property business and Distribution & Service Centre business. In such a case, the company should meet its ESR requirements such as ESR Notification filing, ESR Report submission and meeting the Economic Substance Test. Company liquidators in Ajman can advise the business owners on the ESR obligations.
Maintenance of UBO Registers
A company under liquidation in Ajman Media City free zone is required to hand over their Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the free zone Authority within 30 days of appointing the liquidator. The company liquidator or administrator must also maintain the RBR and PSR for not less than five years from the date of liquidation. Failing to meet this requirement will lead to hefty penalties in line with the relevant provisions in Cabinet Decision No. (58) Of 2020 on Ultimate Beneficial Ownership. Talk to the best company liquidators in Ajman to ensure that the UBO registers are maintained properly.
Submission of Liquidation Report
Submission of the liquidation report by the liquidator marks the final step of company liquidation in Ajman Media City. Upon receiving the report, the Registrar will strike off the name of the company from the Register and cancel the trade license. Hiring experienced company liquidators in Ajman is critical for preparing and submitting perfect liquidation reports.
Hire the Best Company Liquidators in Ajman, UAE
Availing of the best company liquidation services in Ajman is critical for business owners to wind up their company without any hassle. The service of experienced liquidators is critical for company liquidation in Ajman Media City as recent reforms such as VAT, UBO and ESR have made the process complex. This is why it is advisable to hire the best company liquidators in Ajman such as Jitendra Business Consultants (JBC).
JBC can ensure that a company is shut down in compliance with existing laws and regulations. JBC is able to deliver the best company liquidation services in the UAE as we have a dedicated team of efficient liquidators. JBC can simplify the process of liquidation for companies licensed by the mainland, free zone or offshore authorities. If business owners are looking for a stress-free liquidation process, don’t hesitate to call us.