Company Liquidation in DDA
Steps involved in the process of liquidation of Companies in Dubai Development Authority (DDA), previously known as Dubai Creative Clusters Authority (DCCA).
Dubai Development Authority (DDA)
Dubai Development Authority (DDA) was previously known as Dubai Creative Clusters Authority (DCCA) following law 10 of 2018.
The Authority is mandated to play a major role in the future growth of Dubai’s economy and set global standards for urban planning, real estate development, and municipal and business services. The Authority is committed to become the enabler of business-friendly environments fostering business excellence for all its stakeholders, including real estate developers and all strategic partners contributing to the economy of Dubai.
The Authority focuses on three main streams delivering:
- Real estate planning and development control,
- Regulatory and licensing services governing all strategic projects and industries within its jurisdiction
- Industry development.
1. Notice to the DDA free zone authority
The Company should submit a notice to the DDA free zone authority mentioning, the reason behind the closure of the entity, and one month prior to the liquidation. Otherwise, there will be some charges for canceling the lease agreement.
2. Board resolution
A board resolution (or Shareholder’s resolution in case of FZE/FZCO) for De-registration must be attested in front of free zone executives. If the shareholders are outside the country/the owner of the company is a foreign company then the resolution has to be notarized and attested from the UAE embassy of that country and the same has to be legalized from Ministry of Foreign Affairs, UAE.
3. Return all office keys
Company must return all office keys and transponders (It is not applicable for the companies in Leasehold or Freehold).
4. New paper advertisement
The Company have to provide the copy of the New paper advertisement (ie; in one in English and other one in Arabic.)
5. Submitting Original Documents
Company Original license, Certificate of formation & Share certificates, Lease agreement and the Original Department of Economic Development License (if it is issued through DDA)
6. Clearance from Authorities
The following clearances are mandatory from different authorities;
- Clearance from Dubai Customs Department
- Clearance from DDA Finance Department
- Clearance from DDA Government Services Department
- Clearance from DDA IT Section
- Etisalat Clearance. (If Required)
- Facilities Management Clearance
7. Liquidation report
Liquidation report must be prepared by a Registered Auditors in Dubai
What is Company Liquidation?
Company Liquidation is a process where a company takes a decision to wind up their business operations as it can no longer continue the business operations. When a company undergoes liquidation, they sell their assets so that they can pay back their debts/liabilities/obligations. The amount that is collected after selling the assets is shared by the shareholders of the company.
There are different kinds of companies in the UAE, such as LLC, Sole Establishment or a Free Zone. When a company is being liquidated in the UAE the assets and properties are distributed to the creditors, shareholders of the company. In other terms Company Liquidation is also termed as winding- up of the business.
Checklist before liquidating your company in the UAE
- Settling down all utility bills
- Paying off Telecommunication Bills
- Closure of Bank Accounts
- Preparing the Final Audit Report
- Cancellation of all the visa under the license
Basic requirement for Free zone Company Liquidation are as mentioned below:
- The Board’s Resolution is required to liquidate the Company in free zones.
- Only registered and approved liquidators in the UAE must be appointment to liquidate a company in free zone.
- All the visas of employees should be canceled and cleared while liquidating a company in free zone.
- Liquidation letter must be submitted only to registered and approved auditor for free zones in the UAE.
- Clearance Certificate from free zone authority.
- No Objection Certificate from Business Unit.
- Clearance Certificate from Commercial Licensing Division Government section.
All fees/charges/expenses are to be settled within the free zone in UAE
Scope of work provided by A & A Associate
- Our representaive can liasion with various JAFZA department for clerances and to complete the Liquidation process hazzle free.
For the above we need notarised POA from the shareholders to perform all activities on their behalf.
- Creating Board resolution and filling all forms pertaining to Liquidation.
- Applying and obtaining NOC from Dubai customs, Etisalat, Post office and RTA.
- Preparing and submitting Liquidation report.
- Getting clearances from JAFZA departments