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Key Steps for Company Dissolution: From Liquidation to Deregistration

First Step: Company Dissolution and Appointment of a Liquidator

When the general assembly meets and issues a resolution to dissolve the company with the approval and consent of the shareholders or partners, the following steps must be followed:

•⁠ ⁠Prepare the minutes of the general assembly meeting, including the decision to cancel the trade license and appoint an accredited liquidator.
•⁠ ⁠Settle any government debts or fines related to the company.
•⁠ ⁠Write an official letter indicating the liquidator’s acceptance of the assignment to liquidate the company.
•⁠ ⁠Fill out the cancellation request through the official and accredited channels of the relevant authority.
•⁠ ⁠Submit the request to the competent authority for approval of the license cancellation and appointment of the liquidator.
•⁠ ⁠Pay the required fees for the license dissolution certificate and the liquidator’s appointment.
•⁠ ⁠Announce the dissolution and liquidation in two official local newspapers in Arabic.

Second Step: Company Deregistration

•⁠ ⁠Write the final report of the company.
•⁠ ⁠Confirm in writing that no objections to the dissolution were raised during the 45-day announcement period.
•⁠ ⁠Cancel the company’s registration, data, and close the establishment card with the Ministry of Human Resources and Emiratisation.
•⁠ ⁠Cancel the residence permits of foreign partners.
•⁠ ⁠Obtain written approval from other government entities regulating the company’s activity.
•⁠ ⁠Obtain approval from the Securities and Commodities Authority and the Ministry of Economy to deregister the company.
•⁠ ⁠Obtain approval from the Department of Economic Development after fulfilling the above documents.
•⁠ ⁠Pay the prescribed fees.

Procedures and Documents Required for the Cancellation or Dissolution of a Limited Liability Company:

•⁠ ⁠A No Objection Certificate (NOC) from the Ministry of Labour.
•⁠ ⁠Proof of the cancellation of residency for non-national or Gulf employees.
•⁠ ⁠The minutes of the general assembly approving the liquidation and appointing the liquidator.
•⁠ ⁠A letter from the liquidator accepting the liquidation of the company.
•⁠ ⁠Newspaper announcements.

It is essential to coordinate and communicate with the General Directorate of Residency and Foreigners Affairs, the Ministry of Human Resources and Emiratisation, and the Economic Department. The employer must ensure the cancellation of employees’ visas and work permits. According to labor law, employers are required to provide employees with a paid notice period of two months before terminating their employment contracts.

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