What is Company Liquidation

Any type of business in UAE requires cancellation of license and all other related permits to liquidate the corporate institution and distribute its assets to creditors, shareholders and other concerned parties. Legal structures such as mainland LLC, sole establishment or free zone company formation can be systematically dissolved either through voluntary or compulsory liquidation process.

Types of Company Liquidation

There are two types of Company liquidation procedures in the UAE


In voluntary liquidation, a meeting is held by the registered agent with the owner/shareholders to pass a resolution declaring the dissolution of the company. During this meeting a liquidator is also appointed. This type of liquidation is called voluntary since the owner/directors decide to liquidate the assets, even if the current worth of their assets is more than their liabilities.


In compulsory liquidation the court gets involved and orders the dissolution of the company. This mostly follows when creditors pursue their legal means and the company owner/director may refuse to cooperate. Then, a legal appointee of the court is assigned with auditing the company’s assets and implementing the best means of distributing them between creditors or other rightful parties.

Liquidation Officer

A liquidator is a UAE registered agent or firms that represents the company to the public and the Court. The liquidator is assigned during the shareholder’s board resolution and is responsible for settling all remaining debts of the company by selling its assets/property through different channels.

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Advantages of Liquidation

Company Liquidation is solution that offers the owner, shareholders, creditors and associated parties to lawfully dissolve company assets and receive a legal share of its liquid amount.

  • It serves as an exit strategy for the investors by settling company liabilities and debts before they spiral out of control
  • Eliminates the cost borne by the community of allowing insolvent companies to trade
  • Liquidation happens to company assets, not to the shareholder’s personal property
  • The liquidator handles most of the process which does not involve the directors presence
  • Once the liquidation process is completed, creditors cannot pursue the owner or directors for any form of payment
  • All unsecure debts are written off and no legal action can be taken against the company

Documents Required for Company liquidation in UAE

To begin company dissolution process, there are 4 basic documents required from the company.

  • Document declaring the liquidation of the company and stating the appointment of liquidator
  • Certified copy showing signatures of all company directors and liquidator attesting to the dissolution
  • The company’s trade license and certificate of registration
  • A copy of liquidator’s license along with letter stating the approval of the dissolution.
  • Different jurisdictions may follow different liquidation processes and timelines. Similarly, the required documents may vary with the jurisdiction of incorporation

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What is the Process to Close a Business in UAE?

During the winding up of company, the business must be erased from the UAE’s Trade Register so the

All the documents are prepared, collected and sent on for approval to legal departments

The concerned free zone authority or DED (incase of mainland LLC company) are notified of company dissolution

Newspaper advertisement in two local Arabic newspapers is published by the authority declaring company liquidation

All necessary documents are submitted to the concerned authority and company dissolution letter is acquired The documents may include

All fees and charges will be settled by the respective free zone authority or with DED, in case of LLC license cancellation Dubai

After the fee has been paid, a final certificate of deregistration (cancellation) will be issued against the corporate entity

Liquidation Management

UAE Company liquidation involves a qualified approach with firm adherence to UAE’s laws and legal procedures. IBG Consulting’s specialized services in company liquidation management will connect you with a global network of Accounting and Law firms to wind-up company registration and effectively dissolve its assets. We offer

Liquidator Appointment

We setup appointment with UAE’s most experienced liquidators to help your company dissolute through professional channel and in minimum timeline.

Accounts Management

We assign a dedicated accountant to oversee liquidation process, documentation, auditing company assets, dissolution revenues, recovery

Credit / Debit Management

We manage all the due debts and tax distribution to creditors, employees and service providers by liaising with them through legal channels