Company Liquidation

Company liquidation in the United Arab Emirates (UAE) is the process of officially closing a business and settling its affairs. It involves ending the company’s legal existence, settling debts, distributing remaining assets to shareholders, and ensuring all legal and regulatory obligations are fulfilled. When a partnership lacks liquid assets to support the organization’s daily operations, when leaders are underpaid or the organization commits a major crime, and when an administrative authority or office of the UAE’s Free Zone Authority, which is in charge of the relevant area, files a lawsuit to influence the corporate tasks, the organization in Dubai, United Arab Emirates, must dissolve.

Clearance of Liabilities:
- Ensure all debts and liabilities are settled before proceeding with the final steps of liquidation to avoid legal complications.
Employee Rights:
- Properly compensate employees for their services, including end-of-service benefits, pending salaries, and other entitlements.
Asset Distribution:
- Distribute any remaining assets to shareholders or owners according to the company’s articles of association or as per the law.
Compliance:
- Maintain compliance with all legal and regulatory requirements throughout the liquidation process to avoid penalties or legal issues.
Professional Guidance:
- At Quick Time, we help Companies navigate the complexities of the liquidation process effectively.

Liquidation Costs

Liquidator Fees:
- Professional fees charged by the liquidator. These fees can vary based on the complexity and duration of the liquidation.
Notarization and Documentation:
- Costs associated with notarizing the board resolution and other required documents. Notarization fees can range from AED 500 to AED 2,000 or more, depending on the number of documents.
Publication Fees:
- Fees for publishing the liquidation notice in two local newspapers (one in Arabic and one in English). This can cost between AED 1,500 to AED 3,000 per publication.
Government Fees:
- Charges imposed by various government entities, such as the Department of Economic Development (DED) for mainland companies or the relevant free zone authority. These fees can range from AED 3,000 to AED 10,000, depending on the jurisdiction and company size.
Audit and Legal Fees:
- If the company’s financial statements need to be audited or if legal assistance is required, additional fees will apply. Audit fees can range from AED 5,000 to AED 20,000 or more, depending on the company’s size and complexity.

Approximate Cost Breakdown

Small to Medium Enterprises (SMEs):

Total costs can range from AED 15,000 to AED 40,000.

Larger Companies:

Total costs can range from AED 40,000 to AED 100,000 or more, depending on the complexity and scale of the business.