What is Company Liquidation?
Company liquidation is the legal process of closing a business, settling debts, and dissolving the entity. This involves selling off assets, clearing liabilities, and officially removing the company from government records.
In the UAE, liquidation is mandatory for businesses that are shutting down to avoid penalties, legal issues, and future complications. Proper liquidation ensures compliance with government authorities, free zones, banks, and tax authorities (FTA).
Why Proper Liquidation is Essential?
Avoid Heavy Fines & Legal Trouble
Failing to liquidate properly can result in hefty penalties, blacklisting, or legal action.
Ensure Smooth Visa Cancellation
All investor and employee visas must be canceled to avoid future liabilities.
Clear Tax & Compliance Requirements
De-register from the Federal Tax Authority (FTA) to avoid VAT penalties.
Close Bank Accounts Securely
Proper closure of business bank accounts prevents future risks.
Protect Your Business Reputation
Ensure a clean exit and avoid future restrictions on starting new businesses.
Company Liquidation Process
Step 1
Appoint a Licensed Liquidator
Step 2
Cancel All Visas & Work Permits
Step 3
Settle Debts & Obtain Clearances
Step 4
Liquidate Assets & Close Bank Accounts
Step 5