Company Liquidation & Dissolution Services

Types of Liquidation

There are several ways companies are wound up in the UAE:

• Voluntary liquidation: initiated by shareholders when solvent
• Compulsory liquidation: court-ordered due to insolvency or legal breaches
• Strike-off / deregistration: administrative removal for non-compliance or inactivity

Legal Process & Regulatory Steps

Liquidation typically involves appointing a liquidator, notifying creditors, settling liabilities, preparing final accounts, cancelling trade licences, closing bank accounts, and formally applying for deregistration with relevant authorities. Each jurisdiction (mainland or free zone) has specific forms and timelines.

Documents Required

• Board resolution or shareholder resolution to liquidate
• Trade licence and commercial register extracts
• Financial statements and bank statements
• Signed appointment letter for liquidator (if applicable)
• Clearance certificates from relevant authorities (e.g., FTA, labour, immigration)

Tax, Employees & Creditor Liabilities

We handle final VAT/CT filings, assess outstanding tax liabilities, manage employee termination obligations including GOSI and final dues, and negotiate with creditors where necessary. Properly documenting these steps reduces the risk of future claims against directors or shareholders.

Typical Timeline & Costs

Liquidation timelines vary: simple solvent voluntary liquidations can complete in 6-12 weeks, while complex insolvency and creditor negotiations can extend several months. Costs depend on legal fees, outstanding liabilities, and authority charges. We provide an upfront estimate after the initial review.

Common Pitfalls & How We Mitigate Them

• Incomplete records leading to delays — we perform document collection and reconciliation
• Unnoticed tax liabilities — we run a pre-liquidation tax health check
• Employee claims — we ensure statutory entitlements are calculated and processed
• Jurisdictional requirements — we handle free zone vs mainland differences

Our Process & Deliverables

We conduct an initial health-check, produce a liquidation plan, appoint and liaise with liquidators and lawyers where needed, prepare final accounts and tax filings, and manage authority clearances until deregistration is issued.