Planning to Windup Your Company in DMCC-Find All Details About Liquidation in DMCC
Dubai Multi Commodities Centre (“DMCC”), was established to establish hub for global commodities trade. This is one the Free Zones in Dubai regulated by Dubai Multi Commodities Centre Authority. The Authority has issues recently, Companies Regulations 2020 and also issued certain How to Guides, Guidance Notes, Templates, along with these regulations.
According to the Implementing regulations and Memorandum and Articles of Association, a
DMCC company may apply for de-registration after termination of its licenses.
The recent issued Guide (source: https://www.dmcc.ae/application/files/1215/8669/9135/Guidance_Notes_-_Company_Winding_Up_-V1.pdf) is being discussed in this blog to understand the modes of winding up and the processes called for.
Circumstances a branch or a company in DMCC can be liquidated or wound up
Based on the guidance notes issued by the DMCC there are mainly four
1. Summary Winding Up
Director declare that the affairs of the Company are capable of being finally wound-up within six months from the commencement of the winding up process.
2.Solvent winding up
Director declare that the affairs of the Company are capable of being finally wound-up within twelve months of the commencement of the winding up process.
3.Insolvent voluntary winding up
A mode of winding up of a DMCC Company wherein there is participation of the creditors of the Company.
4.Involuntary winding up by the competent Court
Registrar of DMCC submits a petition to the Court for the winding up of the Company after he determines that:
1.The Company has been struck-off; or
2. The Company has committed a serious or repeated contravention of the DMCCA
Company Regulations or any other regulation, rule, policy or decision applicable in the DMCC Free Zone.
How to Close/Windup Your Company in DMCC
Company liquidation (winding up) is the process when the company shuts down its operations and the property and assets of the company are sold and distributed among creditors and shareholders of the company.
Appointment of Liquidator is a must for Companies and not required for Branches. The Process of Liquidation or Winding up is to be initiated by submitting an Application.
It is mandatory to appoint a Liquidator for winding up a company, as the Liquidator carries out an important duty by determining the assets and liabilities of the company and settling those liabilities in a proper manner.
All powers of the Shareholders/Directors of the company shall cease upon the appointment of the Liquidator for winding up. The Liquidator shall determine the financial standing of the company at the time of liquidation and shall be responsible in the discharge of the assets and liabilities of the company. All these will be included in the Liquidation Report to be provided by the Liquidator during the winding up process.
Winding up a company in UAE is quite a complicated and long process which requires a professional approach and expertise. It involves big number of different authorities and third-parties to clear all the related dues, settle all liabilities, obtain legal requirements and approvals.
Don’t waste your time on complex procedures and request professional assistance in your UAE company liquidation to be sure all procedures are executed in compliance with UAE laws and regulations. Specialists at Alya Auditors with high experience in providing efficient assistance in liquidation of any types of UAE companies: Free Zone like DMCC,DWC,SAIF Zone etc., LLC, local and foreign Branch Companies, and Offshore Companies.
How can a business consultant help you in setting up a business in the UAE? Dubai is perhaps one of the most business-friendly countries in