Companies operating in Dubai Multi Commodities Centre (DMCC) can opt for voluntary liquidation when going ahead becomes tough. Voluntary company liquidation in DMCC allows the business owners to exit their operations legally by satisfying all the stakeholders involved including the employees. However, company liquidators in Dubai advise you to plan your exit strategy right from the get-go as the complexities of the process may give you last-minute panic. Here is a list of requirements for business owners opting for DMCC company liquidation in 2022:
The process of company liquidation in DMCC begins when the shareholders or directors pass a resolution to liquidate the company. All the shareholders or directors are required to sign the resolution before sending it to the DMCC authority. The resolution should also be notarized by the Notary Public.
Appointment from Liquidator
You need to appoint a liquidator to wind up a company in DMCC. The liquidator can be an audit firm licensed to carry out its activities in the UAE. Hiring experienced company liquidators in the UAE is key to speeding up the liquidation process.
Letter of Confirmation from the Liquidator
In the next step, the liquidator is required to send an official letter to the DMCC authority confirming his willingness to accept the role. DMCC mandates the confirmation of an appointment to be in the form of a letter written on the company letterhead with the original signature from the authorized signatory.
Return All the Legal Documents
The business owner or shareholders must return all the legal documents of the company to the DMCC Authority. The legal documents may include a License, Memorandum of Association (MoA), Certificate of Registration, Share Certificates, etc.
Hand Over Establishment Card
If any establishment card has been issued, it must be returned to the DMCC Authority. The establishment card must be handed over along with a fee for closing the file in Immigration. In case the establishment card is lost, the company should present an undertaking letter along with the fee for closing the file in Immigration. A police report should also be submitted.
Submit Clearance Letters
The company should submit a clearance letter from utility providers such as Etisalat, Du, and DEWA. Clearance should also be obtained from the bank where the company has an account. The clearance letter should confirm that the company has closed all accounts and services.
No Objection Certificate from Customs
A No Objection Certificate (NOC) has to be obtained from Dubai Customs and submit it to the DMCC Authority. The submission of NOC from Customs applies to all Trading License holders undergoing company liquidation in DMCC. NOC can be obtained by applying through the website of Dubai Customs. Company liquidators in Dubai can advise businesses on obtaining the NOC.
Cancellation of Visas and Other Permits
Companies undergoing liquidation in DMCC must cancel their visas, including employee visas. They should also cancel PIC (Permanent Identity Cards) and TAC (Temporary Access Cards) issued under the company’s name. The cancellation can be done through the DMCC portal.
Lock-in Period for Company Liquidation in DMCC
The notice of liquidation will be published by DMCC for 14 days. Creditors or any other parties can raise their objection to the company’s liquidation in DMCC during this period.
The process of VAT De-registration applies to companies that have already registered for VAT. By deciding to undertake liquidation, a company becomes eligible to apply for VAT De-registration in the UAE. As per the UAE VAT Law, companies must apply for VAT De-registration within 20 days of becoming eligible for it. The Federal Tax Authority (FTA) will a penalty of AED 10,000 on companies that fail to comply with this rule. Business owners should promptly apply for VAT De-registration as fines will further delay the process of company liquidation in DMCC.
Maintaining Real Beneficiary Register
As per Cabinet Decision No. (58) of 2020 on Ultimate Beneficial Ownership (UBO), companies undergoing liquidation in the UAE must 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 liquidator or administrator must also maintain the two registers for at least five years from the date of liquidation. Hefty penalties will be imposed on the companies that violate this requirement.
Comply with Economic Substance Regulations
Companies under liquidation in DMCC must comply with Economic Substance Regulations (ESR) if they carry out any of the nine relevant activities in the UAE. The nine relevant activities are banking, insurance, holding company, lease-finance, investment fund management, shipping, headquarters business, Intellectual Property business, and distributions and service centre business. They must comply with ESR obligations such as ESR notification filing and report submission. Failing to comply with the regulations will attract hefty penalties from the National Assessing Authority.
Final Liquidation Report
The liquidator must submit a liquidation report and a closed audit report at the end of the liquidation process in DMCC. The DMCC will then issue a License Termination Letter and a De-registration letter.
Hire the Best Company Liquidators in Dubai, UAE
Business owners can opt for voluntary liquidation in DMCC to wind up their companies operating in the free zone. The process of liquidation in the UAE has become more complex with the introduction of ESR and UBO, which means the companies need to approach the winding-up process more carefully. Leading company liquidators in Dubai such as Jitendra Business Consultants (JBC) can help business owners simplify the DMCC liquidation process.
JBC is one of the leading providers of company liquidation services in Dubai with specialised expertise in VAT De-registration, ESR, and UBO. We have a qualified team and sufficient resources to carry out the process of company liquidation in DMCC with finesse. Call our efficient company liquidators in Dubai to wind up your company without any hassle.