Voluntary company liquidation in Sharjah Publishing City free zone is not a complex process even though there are some mandatory steps and requirements. However, it may turn complex if you have not planned your exit strategy right from the get-go. Most business owners fail to plan their exit strategy and experience difficulties while winding up their companies in the UAE. Voluntary company liquidation is the best exit strategy available for business owners and it can be simplified by hiring the top company liquidators in Sharjah.
By opting for voluntary company liquidation in the UAE, you can shut down your company legally without resorting to risky acts such as fleeing the country. Moreover, voluntary liquidation allows you to shut down a company by satisfying the needs of every stakeholder involved, including the employees. Here is a list of the latest steps and requirements to wind up a company in Sharjah Publishing City:
Passing of Board Resolution
A board resolution must be passed by the shareholders or directors to being with the process of winding up a company Sharjah Publishing. The resolution should state the reason for liquidation and must be signed by all the shareholders or directors. Send the resolution to the free zone authority after getting it attested by the Notary Public.
Appointment of Company Liquidator
A liquidator needs to be appointed by the management to carry out the process of company liquidation in the Sharjah Publishing City free zone. The liquidator can be any audit firm licensed to carry out its operations in the UAE. After the appointment, the liquidator is required to send a letter of acceptance to the free zone authority. You must note that all the powers of the board members or shareholders will transfer to the liquidator at this point.
Cancellation of Visa
Before starting the company liquidation process in the UAE, you must apply for visa cancellation. All the visas issued by the company including that of the employees must be cancelled. It is also mandatory to cancel the establishment card of the company.
Obtain Clearance Certificates
Clearance certificates must be obtained from the leasing department of the free zone after returning the keys to the premises. Original documents issued at the time of incorporation must also be returned to the free zone authority. Clearance must be obtained from authorities and utility service providers such as Sharjah Customs, SEWA and Etisalat / Du. A closure letter must be obtained from the bank after closing the bank account.
The news about the company’s liquidation must be published in both English and Arabic newspapers. A grace period of 45 days is allowed after the publication during which any party can raise a claim. Any objection made after the lock-in period will not be accepted by the free zone authority.
Application for VAT Deregistration
Companies with active VAT registration in the UAE are required to apply for VAT deregistration within 20 days of cessation. You will incur a penalty of AED 10,000 if this requirement is not met. Most companies undergoing liquidation in the UAE forget this key obligation, leading to delays and penalties.
Economic Substance Regulations Compliance
If your company has carried out any of the nine relevant activities, you are required to meet the mandatory requirements as per the Economic Substance Regulations (ESR). The ESR obligations are filing ESR Notification, submitting ESR Report and meeting Economic Substance Test. The nine relevant activities are Banking business, Insurance business, Lease-Finance business, Investment Fund Management business, Holding Company business, Headquarters business, Shipping business, Intellectual Property business and Distribution & Service Centre business. Compliance failure must be avoided as it will lead to hefty penalties and reputation damage.
Compliance with Ultimate Beneficial Ownership
Companies undergoing Liquidation in Sharjah Publishing City must fulfil their obligations as per Cabinet Decision No. (58) of 2020 on Ultimate Beneficial Ownership (UBO). As per the UBO Law, a company under liquidation in the UAE must hand over the Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the free zone Authority within 30 days of appointing the liquidator. Moreover, the liquidator or administrator must maintain the RBR and PSR for at least five years from the date of liquidation.
Submission of Liquidation Report
The winding up of a company in Sharjah Publishing City will officially conclude once the liquidator submits his final Liquidation Report to the free zone authority. Once the report is received, the free zone Registrar will remove the company’s name from the register and cancel its trade license.
Hire the Best Company Liquidators in Sharjah, UAE
Closing down a company in Sharjah Publishing City involves both complex and simple steps. You must appoint experienced company liquidators in Sharjah such as Jitendra Business Consultants (JBC) to navigate each of these steps. JBC has a team of highly qualified company liquidators in Sharjah who can complete the process complying with all the key requirements including ESR, UBO, VAT Deregistration etc. Avail of our company liquidation services in the UAE to peacefully close down your company.