Analysis of the Standard Process of Dubai Company Cancellation

In Dubai, corporate deregistration is a systematic process involving legal, financial and administrative processes. Both local and free zone companies need to follow strict procedures to ensure compliance. This article will analyze the standard process of Dubai company cancellation in detail to help business owners clearly grasp the key points of operation.

Dubai Company Deregistration Process

1. Resolution of shareholders:

convene a general meeting of shareholders and pass a resolution to cancel the company. This resolution usually requires the approval of a majority of shareholders.

Appoint a liquidator, may appoint a third party.

2. Liquidation of debts:

before starting the cancellation process, the company must clear all debts, including government debts, taxes, employee salaries, supplier debts, etc.

If a creditor makes a request for repayment, the company is required to meet it.

3. Audit Report:

commissioned a licensed accountant to issue a "liquidation audit report" setting out the details of assets/liabilities.

Focus on verification of outstanding taxes, social security arrears and external guarantees.

Dubai Revenue Authority requires companies to submit recent audit reports to confirm tax compliance.

4. Notice to creditors:

notice is given to all known creditors informing them of the company's impending write-off.

Creditors are usually entitled to make a claim for repayment within a certain period of time (usually three months).

5. Creditors by public announcement:

the liquidation announcement was published in two local Arabic-language newspapers for a period of at least 45 days to allow creditors to object.

6. Dealing with employee issues:

if the company has employees, it needs to ensure that the severance of employees is handled in accordance with Dubai's labor laws, including payment of severance pay, non-payment of wages and benefits, etc.

Submit the employee severance completion certificate issued by the labor department, including the record of wage settlement, social security suspension and work visa cancellation.

7. Submit cancellation application:

after preparing all the necessary documents, submit the cancellation application to the Ministry of Economic Affairs (DED) or other relevant government department in Dubai.

Free zone companies are required to submit a cancellation application to their respective Free Zone Authority.

8. Approval by government departments:

the cancellation request needs to be approved by Dubai's Ministry of Economy or other relevant government.

This may include an inspection of the company's compliance.

9. Cancellation of business license:

once approved by the government, the company needs to cancel its business license in Dubai's industrial and commercial department.

10. Disposal of remaining assets:

the company needs to dispose of the remaining assets, including realizing assets and paying the remaining debt.

11. Obtain cancellation certificate:

after completing all the cancellation steps, the company will obtain the "company cancellation certificate", which marks the company's official cancellation.

Dubai Company Cancels Required Materials

1, the company's original business registration certificate and its copy: and the certificate must be in a valid annual inspection state.

2. Resolution of the shareholders' meeting/board of directors: it shall contain a clear resolution on the cancellation of the company and shall be signed and confirmed by all shareholders or directors. If it involves authorizing a third party to handle cancellation matters, an additional power of attorney is required.

3. Notarization and certification requirements: the above resolution documents are subject to consular certification procedures to ensure their legal validity in Dubai government agencies.

4. Audit report: A complete audit report issued by an accounting firm recognized by the UAE for the last three years and special financial statements for the liquidation period are required.

5, bank account processing certificate: need to provide a formal receipt issued by the bank, to prove that all bank accounts of the company have completed the cancellation operation, and the account balance has been cleared.

6. Tax clearance certificate: A tax clearance certificate issued by the UAE Federal Tax Authority (FTA) must be obtained, covering value-added tax, corporate income tax and other related taxes. The certificate must clearly indicate that the company has settled all taxes and has no record of any arrears.

7, office termination certificate: if the company has a physical office, need to provide the lease contract termination agreement or the landlord issued by the lease confirmation letter.

8. Debt Settlement Statement: All shareholders are required to sign a written statement promising that the company has paid off all known debts and made arrangements for potential unknown debts.

9, special industry license cancellation certificate: if the company holds a specific industry license (such as medical, education, finance, etc.), need to provide additional license cancellation receipt issued by the relevant departments.

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