Dubai, one of the most populous destinations in the UAE, is home to millions of foreign ex-pats from over 200 nationalities. Developed from the sands of the Arabian Gulf, today the region has established itself a concrete business investment ground at a global level. With the growth of different business industries, the government has categorized the region and has built multiple free zones in Dubai, dedicated to different business industries. One such thriving free zone dedicated to the tech industry is the Dubai Silicon Oasis that grabs the attention of business investors. The Government of UAE demands proper documentation, whether it is incorporation or company liquidation.
This guide is focused on highlighting the company liquidating process in the free zone of Dubai Silicon Oasis. However, before we proceed ahead, let’s begin by understanding the concept of company liquidation.
What is Company Liquidation?
In simple terms, company liquidation is the scenario wherein the company shareholders are planning to close down or dissolve the business entity. The region of Dubai has got strict rules and regulations that need to be followed when it comes to company incorporation or liquidation. Proper records are to be maintained and submitted to clear the liquidation process. To know more about company liquidation. Now, you must be wondering as to why a company should liquidate? Well, the answer is just below.
When Should a Company Liquidate?
The shareholders in a company decide to move towards company liquidation because of multiple reasons. Some of them are stated below:
- Unable to pay the respective debts
- The higher attrition rate in the entity
- Failure of company registration
- Failure to commence the trading facilities
To know about the other reasons that give birth to a company liquidation.
Dubai Silicon Oasis
Dubai Silicon Oasis is one of the buzzing free zones in the UAE that has been one of the popular tech-based free zones. Established in 2004, the region of DSO is spread across 7.2 sq.km. which allows multiple facilities to the business investors to come forward and set up their business. Some of the facilities that it provides are:
- Complete foreign ownership
- 100% tax exemptions
- Competitive pricing
- Plug-and-play office solutions
- Hassle-free custom clearance
- Stringent IP laws
The global business investors are flexible in incorporating their business in the zone of DSO and finds it to be a suitable investment ground. However, when it comes to company liquidation process, there are certain steps to be followed.
Company Liquidation Process in Dubai Silicon Oasis
Any business entity needs to follow the below-mentioned steps to initiate the company liquidation process:
- Submit a notice to the DSO free zone authority highlighting the reason of liquidation
- The board resolution needs to be attested in front of the free zone executives
- The office keys must be returned
- The company original license is to be canceled
- Certificate of incorporation, share certificates, lease agreements, and DED license are to be canceled
- The business entity must get a clearance from the below-mentioned authorities:
- DEWA Clearance
- Dubai Customs Department
- DSOA Finance Department
- DSOA Government Services Department
- DSOA IT Section
- Etisalat Clearance
- Facilities Management Clearance
After obtaining a clearance permit from the mentioned authorities, the liquidation process gets established. Now, according to the prescribed rules, the liquidation report needs to be prepared by a certified Dubai auditor. Are you wondering why? Well, the answer to your query is stated below.
Benefits of Availing Professional Services
By getting in touch with professional experts, you can grab the following benefits:
- The liquidation processes can be carried out easily
- Accounts can be maintained effectively
- Proceedings are carried out within a short span
- Appropriate division of Assets and Liabilities
- The legal operations regarding company closure will be carried out in a hassle-free way
How Can JAXA Help?
Intending to provide one of the best solutions regarding company liquidation, JAXA stands as a DSOA Approved Audit firm in the UAE. Our professional experts are well-versed with the company liquidation proceedings and can help you to carry out the process at ease. With the help of industry experience, they can provide you with tailored solutions effectively. In case you want to proceed ahead with the company liquidation process or have any query, do have a word with our advisors. Contact us today-we’d be glad to assist.