Companies registered with the Dubai International Academic City free zone can opt for voluntary liquidation to peacefully exit their business operations. The process of voluntary company liquidation in Dubai International Academic City will enable the business owners to shut down their operations fulfilling the interests of all the stakeholders involved including the employees. Company liquidators in Dubai can help you liquidate your free zone company without any delay. Keep reading the following blog to understand the key steps and requirements to wind up a company in Dubai International Academic City:
Send Notice to the Dubai Development Authority
Dubai Development Authority (DDA) is the competent government entity that controls and regulates the companies operating in Dubai International Academic City. As per DDA’s rules, the shareholders need to send an official notice to the DDA to express their intention to wind up the company. You need to state the reason for liquidation in the notice.
Pass a Board Resolution to Liquidate the Firm
After sending the notice, the shareholders or directors of the company must pass a board resolution to liquidate the company. All the shareholders or directors are required to sign the resolution. You must ensure that the resolution is notarized by the Notary Public before submitting it to the DDA along with the required fees.
Appoint a Company Liquidator
The shareholders of the company are required to appoint an official liquidator. The liquidator must be an audit firm licensed to carry out its activities in the UAE. The free zone authority must be informed of the name and address of the liquidator.
Acceptance Letter from the Liquidator
The liquidator in Dubai is required to inform the free zone authority that he is willing to accept his duties and responsibilities as a liquidator. For this, the liquidator must send a letter of acceptance to the free zone authority.
Advertisement in the Newspaper & Lock-in Period
Once the liquidator has been appointed, it is mandatory for you to publish an advertisement in the newspaper regarding the company’s liquidation. The advertisement should appear in both English & Arabic Newspapers, stating that any interested party can raise a claim within the lock-in period of 45 days, counting from the date of publication. Claims received after the lock-in period will not be accepted by the free zone authority.
Obtain Clearance Certificates
Clearance certificates or NOCs are one of the key documents you must submit while liquidating a company in Dubai International Academic City. You are required to obtain clearances from the following entities:
- The finance department at TECOM
- TECOM Government Services Operations (for PO Box and Visa Cancellation)
- Dubai Customs
- Dubai Electricity and Water Authority (DEWA)
- Etisalat / Du
Close the Bank Account
The shareholders must ensure that the company’s bank account is closed before filing for liquidation. Ask the bank to issue an account closure letter, which must be submitted to the free zone authority.
Cancellation of Visas
All the visas under the company must be cancelled to complete the process of liquidation in Dubai International Academic City. Do not forget to cancel the visas of your employees as well. It is also mandatory to cancel the establishment card of the company.
Return Original Documents
All the original documents issued at the time of company incorporation must be returned to the free zone authority. This includes trade license, Memorandum of Association (MoA), Articles of Association (AoA) etc.
Companies with an active VAT registration must deregister it within the deadline prescribed by the Federal Tax Authority (FTA). The application in this regard should reach the FTA within 20 days of becoming eligible for VAT deregistration. Failing to meet this critical requirement will lead to a penalty of AED 10,000. Apply for VAT deregistration on time to prevent delays and hefty fines.
Comply with Economic Substance Regulations
Companies undergoing liquidation in Dubai International Academic City must meet their obligations as per the Economic Substance Regulations (ESR) if they have conducted any of the nine relevant activities. The nine Relevant Activities under ESR 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. Non-compliance will result in hefty administrative penalties and other relevant consequences.
Meet Ultimate Beneficial Ownership Regulations
Companies undergoing liquidation in the UAE 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. Moreover, the liquidator or administrator is required to maintain the registers for at least five years from the date of liquidation. Complying with UBO requirements is key to avoiding penalties. Company liquidators in Dubai can help you with maintaining the UBO registers.
Submission of Final Liquidation Report
The liquidation process will come to an end once the liquidator submits his final liquidation report. Upon receiving the report, the free zone Registrar will strike off the company’s name from the Register and cancel its trade license. Hiring the best company liquidators in Dubai is essential to obtain flawless liquidation reports.
Consult with the Best Company Liquidators in Dubai, UAE
Voluntary company liquidation in Dubai International Academic City allows business owners to shut down their operations legally. Even though voluntary liquidation is the best exit strategy, the best results can be produced by hiring top company liquidators in Dubai such as Jitendra Business Consultants (JBC). Our company liquidation services in Dubai will help you to ensure your company is wound up as per mandatory laws and procedures. JBC can help you with compiling Board resolutions, filling all forms related to liquidation, applying and obtaining NOC, preparing and submitting Liquidation reports etc. Consult with us today to make sure your exit is cost-effective and hassle-free.