Voluntary Company liquidation in Dubai is one of the best business exit strategies, which requires careful approach and strategy. Businesses should know how to close the company before even starting it. Company liquidation in Meydan free zone is a highly streamlined process involving a series of steps.
Business owners need to comply with all the regulations set out by the free zone authority to wind up their company in Meydan without any hassle. Hiring experienced company liquidators in Dubai is the ideal solution to close down a company with zero hassle. Winding up a company has become a complex process in 2022 as business owners are now required to meet obligations related to Value Added Tax (VAT), Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO) etc.
You may be now wondering how you can easily navigate the latest requirements related to company liquidation in Dubai. No need to worry, we have detailed all the key steps and requirements to wind up a company in Meydan free zone in this blog. Read along to know further:
Passing of a Board Resolution
The first step of winding up a business in the Meydan free zone begins with the shareholders passing a resolution to close down the company. The board resolution must be passed by all the shareholders or directors signing on it. The board resolution must be notarized by the Notary Public before sending it to the free zone authority.
Appointment of Company Liquidator
The resolution must also pass the appointment of a liquidator who will carry out the liquidation of the Meydan free zone company. The liquidator can be an audit firm holding a valid license to operate in the UAE. Hiring the best company liquidators in Dubai is critical to the successful completion of the liquidation process.
Letter of Acceptance by the Liquidator
In the next step, the liquidator must confirm his appointment by sending a letter of acceptance to the free zone authority. At this point, it’s important to note that the powers of the shareholders and directors cease when the liquidator takes charge.
Cancellation of All Visas
All the visas must be cancelled including that of the employees. Clearance must be obtained from the immigration and labour departments so that you can progress to the next steps of company liquidation in the Meydan free zone. You should also cancel the establishment card of the company.
Obtain No Objection Certificates
Getting No Objection Certificates (NOCs) from government entities, banks and utility service providers are mandatory for winding up the company. You should get clearance certificates from the leasing department of the Meydan free zone and the keys to the facilities must be returned. Clearances should also be obtained from Dubai Customs, DEWA, and Etisalat/Du. Do not forget to get a letter of closure from the bank after closing the bank account of the company.
A newspaper advertisement announcing the winding up of the company must be published in an Arabic and an English newspaper. It will be followed by a lock-in period of 45 days during which creditors or other parties can raise any claim. Meydan free zone authority will not entertain any claims or objections made after the lock-in period.
Return Original Company Documents
You should return the original company documents such as Company Original license, Certificate of formation & Share certificates, Lease agreement etc to the free zone Authority. Associating with reputed company liquidators in Dubai will help you meet such requirements without fail.
Apply for VAT Deregistration
VAT Deregistration is a mandatory requirement for companies that are registered for VAT in the UAE. A company under liquidation is no longer eligible to continue with its VAT registration. Such companies are required to apply for VAT Deregistration within 20 days of becoming eligible for it. Violating this critical requirement will lead to hefty penalties up to AED 10,000.
Comply with Economic Substance Regulations
During the process of liquidation, companies should assess whether they fall within the scope of Economic Substance Regulations (ESR). If they have conducted any of the nine relevant activities during that period, they must meet EST requirements such as ESR Notification filing, ESR Report submission and Economic Substance Test. Complying with ESR requirements will save you from incurring hefty penalties and reputation damage.
Hand over Ultimate Beneficial Owner Registers
Companies undergoing liquidation in Meydan free zone are required to 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. The liquidator or the administrator must maintain the RBR and PSR for at least five years from the date of liquidation. Meeting UBO requirements as per Cabinet Decision No. (58) of 2020 is essential to avoid hefty administrative penalties.
Submission of Final Liquidation Report
The process of voluntary liquidation of a company in the Meydan free zone will come to an end when the liquidator submits the final liquidation report to the free zone authority. Upon receiving the report, the free zone Registrar will strike off the company’s name from the register and cancel its trade license.
Hire the Best Company Liquidators in Dubai, UAE
Business owners are required to appoint company liquidators in Dubai to wind up their companies in Meydan free zone. A liquidator oversees the entire process of company liquidation in the Meydan free zone and submits the final liquidation report to the free zone authority. In recent times, the process of company liquidation in the UAE has grown to be more complex due to regulations such as VAT, ESR, and the UBO. To make the process hassle-free it’s advisable to hire experienced company liquidators in Dubai such as Jitendra Business Consultants (JBC).
JBC is one of the leading providers of company liquidation services in the UAE. Our team is highly qualified and well-versed in the UAE company liquidation regulations. We can help you meet all the requirements including ESR, VAT Deregistration and maintenance of UBO registers. Closing down a company in Dubai is now easier with the help of JBC’s bespoke liquidation services.