Legal Procedure for Company Liquidation in the UAE
Closing a company in the UAE requires strict compliance with legal procedures. Whether the business is Mainland, Free Zone, or Offshore, the liquidation process ensures that all financial, regulatory, and contractual obligations are settled. This guide outlines the legal procedure for company liquidation in the UAE and explains how Adv. Saif Al Shamsi, Founder of TLG – The Legal Group, ensures smooth, compliant closure.
1. Board/Shareholder Resolution
Liquidation begins with a formal resolution from shareholders or the board of directors deciding to close the company.
For Mainland companies, this resolution must be notarized.
For Free Zone companies, it must be submitted to the respective authority (DMCC, DAFZA, JAFZA, etc.).
2. Appointment of a Liquidator
Mainland LLCs and many free zones require appointing a registered liquidator—usually an audit or legal firm.
The liquidator issues:
- Letter of acceptance
- Initial Liquidation Report
These documents are mandatory to proceed with government approvals.
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3. Apply for Initial Clearance
Companies must obtain initial approval from:
- DED (for Mainland)
- Free Zone Authority
This step confirms that the company has no pending violations that block liquidation.
4. Newspaper Advertisement (Mainland Only)
Mainland companies must publish a 30-day liquidation notice in two local newspapers.
This public notice allows creditors to raise claims.
Free zone companies may or may not require this, depending on the jurisdiction.
5. Settle All Liabilities
During the notice period, the company must settle:
- Outstanding invoices
- Employee salaries and end-of-service benefits
- Utility bills
- Supplier contracts
- Lease agreements
- Government fees
Employee visa cancellations and corporate immigration file closure are also mandatory.
6. Obtain Clearance Certificates
The company must secure a series of No Objection Certificates (NOCs) from authorities, depending on its business activity:
- Federal Tax Authority (FTA) – VAT deregistration
- MOHRE / Labor Department – employee clearance
- Immigration – visa cancellation
- Utilities (DEWA/SEWA/FEWA)
- Municipality
- Telecom providers
Missing any of these can delay the final liquidation.
7. Final Liquidation Report
After all settlements, the liquidator issues the Final Liquidation Report.
This is submitted along with all clearances to the licensing authority.
8. Cancellation of the Trade License
Once all documents are approved, the authority cancels the trade license, and the company is officially dissolved.
The business name becomes unavailable for future use for a specific period.
How Adv. Saif Al Shamsi (Founder, TLG – The Legal Group) Helps
Adv. Saif Al Shamsi is known for handling complex corporate liquidations efficiently and professionally.
1. End-to-End Legal Compliance
He ensures every step—from resolutions to liquidator appointments—is done according to UAE law.
2. Managing All Government Interactions
His team coordinates with DED, free zones, immigration, labor, and regulatory bodies to avoid delays.
3. Protecting Shareholders from Legal Risks
He addresses liabilities, creditor claims, partner disputes, and VAT issues before they escalate.
4. Handling Complex Liquidations
He specializes in cases involving pending court disputes, frozen bank accounts, or shareholder conflicts.
5. Fast, Transparent, and Hassle-Free Closure
With TLG’s legal oversight, businesses close smoothly without administrative errors or compliance gaps.
Conclusion
Company liquidation in the UAE requires accuracy, documentation, and strict legal compliance. With Adv. Saif Al Shamsi of TLG – The Legal Group, businesses can complete liquidation confidently—protecting shareholders, settling obligations, and ensuring a lawful, seamless closure.