Ans: Winding up a company in the United Arab Emirates (UAE) involves several steps . The specific process can vary depending on the type of company (e.g., mainland or free zone) and the circumstances surrounding the closure.

Here is a general overview:

1- Board Resolution: The first step is for the company’s board of directors to pass a resolution in favor of winding up the company. This typically requires a majority vote of the board.

2- Creditors’ Meeting: If the company has creditors, a meeting should be called to inform them of the decision to wind up the company. This is usually done within 30 days of the board resolution.

3- Liquidator Appointment: The company should appoint a liquidator who will be responsible for managing the winding-up process. The liquidator can be a company director or an external party.

4-Notification to Relevant Authorities: Inform the relevant UAE authorities, such as the Department of Economic Development (DED) for mainland companies or the relevant free zone authority for free zone companies, about the decision to wind up the company.

5- Public Announcement: A notice of the company’s intention to wind up should be published in two local newspapers, one in Arabic and one in English.

6-Settlement of Debts: The company must settle all its debts, including those to creditors and employees. This includes obtaining clearance certificates from relevant government entities.

7- Assets Distribution: After settling debts, the company’s assets can be distributed to shareholders according to their ownership percentages.

8-Cancelling Licenses and Permits: All licenses, permits, and registrations related to the company’s activities should be canceled.

9-Final Audited Accounts: Prepare final audited financial statements for the company, which will be used during the liquidation process.

10-Liquidation Report: The liquidator must prepare a liquidation report outlining the financial position of the company, details of assets and liabilities, and the distribution plan.

11-Final De-registration: Apply for the final de-registration of the company with the relevant authorities.

12- Official Gazette Publication: A notice of the company’s dissolution should be published in the official gazette.

13-Cancellation of Residency Visas: If applicable, cancel the residency visas of foreign employees and investors.

14- Closure Certificate: Once all these steps are completed, the relevant authority will issue a closure certificate confirming the company’s winding-up process.

It’s important to note that the specific procedures and requirements may vary depending on the UAE emirate and free zone where the company is registered.

Note – Above are the general informations for the knowledge of readers and should not be considered a formal legal opinion.

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