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How to Liquidate a Company in the UAE ?

Many business owners have no call to understand what liquidation is until it’s too late. Put simply, liquidation is the process by which a company that has reached the end of its life is formally closed down and its assets realised (converted into cash).

Although the term is more commonly use in the context of insolvent companies, it may also be used in the context of solvent ones.

When a company goes into liquidation its assets are sold to repay creditors and the business closes down. The company name remains live on Companies House but its status switches to ‘Liquidation’. The removal of the name only comes about on dissolution which is approximately three months after the closure of the liquidation.

There are two main types of liquidation process, solvent and insolvent liquidation.

Solvent liquidation usually involves a director’s retirement, or may be the closure process chosen when a business serves no further useful purpose. This is called a Members’ Voluntary Liquidation (MVL).

Insolvent liquidation occurs when a company cannot carry on for financial reasons. The overall aim of an insolvent liquidation process is to provide a dividend for all classes of creditor, but it is often the case that unsecured creditors receive little, if any, return.

Alya Auditors in the UAE are licensed liquidators with vast experience in all industries, and are available for appointment as liquidator for companies  Mainland companies in Dubai,UAE and Free zone Companies like DMCC,DWC,JAFZA,SAIF Zone etc .

Steps For Company Liquidation in the UAE

Cancellation of a Limited Liability Company (LLC) License


  1. Cancellation of contracts of all the employees of the company.
  2. Decision of the director or the board of directors for dissolution.
  3. Appointment of a liquidator, authorized by a notary public.
  4. Fees payment to the Department of Economic Development (DED) for the issuance of company liquidation certificate.
  5. Advertisement of liquidation in two local Arabic newspapers for one day and wait for 45 days to check whether any client has financial claim against the company.
  6. Present the original newspaper advertisement along with the audit report of the company to the Department of Economic Development (DED).
  7. Clearance letter from Ministry of Labour, DEWA, Etisalat, Immigration and visa cancellation of all the partners.
  8. Liquidation certificate and copy of Director Board resolution.

Cancellation of Sole Establishment Company


  1. Cancellation of contracts of all the employees of the company.
  2. Cancellation of Labour Establishment Card form from Tas’heel Center.
  3. Get seal and authorized signature of the company on the application and submit at any of the Labour office branch. Labour office will issue their NOC by putting a stamp on the application you submitted.
  4. Then type license cancellation form of Department of Economic Development, get signature of the owner and submit at DED.
  5. Pay fees at Department of Economic Development for cancellation.
  6. Economic Department will issue a file number and take it to Department of Protective Systems to get clearance from Police authority. If there are no violations in Police records, they will send clearance message soon to DED electronically.

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