How to Liquidate a Company in Sharjah Airport International Free Zone (Saif Zone)?
The companies operating in the Sharjah Airport International (SAIF) Zone may be forced to wind up due to reasons including adverse economic conditions, cash flow issues, change of business strategies, loss, etc. Being a well-maintained and regulated free zone, the SAIF Zone Authority has deployed certain highly streamlined procedures for liquidating the companies operating in the free zone. Appointing a liquidator is the first step in initiating the insolvency process. The management can appoint registered SAIF Zone liquidators to wind up their company. The companies need to give a 90 days notification about liquidation to successfully close down the business.
Procedure to Wind up a Company in the SAIF Zone
1) Board Resolution
The directors of the companies in the SAIF Zone need to convene a general meeting and make the decision to liquidate their free zone business entity. To wind up the company all the directors of the company are needed to sign the Board Resolution. This step applies to all the companies including Free Zone Companies and Branches of both foreign and local companies. The SAIF Zone Authority mandates that the Board Resolution must include,
- Clauses for closure
- Name of the individual or bank account details to transfer refunds/deposits after liquidation
If the shareholder is a local corporate entity, then the Board Resolution should be legalized and submitted to the SAIF Zone Authority.
In the case of branches or subsidiaries of foreign companies, the Board Resolution should be attested by the UAE Embassy in the Country of Origin & also MOFA (The Ministry of Foreign Affairs) in UAE.
2) Payment of Fees to SAIF Zone
The companies will be required to pay AED 5,000 as a late liquidation if they fail to provide a 3 months’ notice to the SAIF Zone Authority. The charges will be calculated after the closure application and the Board Resolution are submitted.
The SAIF Zone Authority will publish the advertisement about the company closure in two local newspapers, for which AED 500 per publication needs to be paid. In addition to these charges, the fee for cancelling the immigration card and obtaining immigration details (if applicable) requires to be paid to the Visa Department.
3) VAT, Subsidiary and Branch Deregistration
VAT Deregistration is one of the crucial steps in the liquidation process that the companies often overlook. An application has to be made to the Federal Tax Authority (FTA) for deregistering the VAT account. As per the FTA regulation, the application should be made within 20 business days of the company becoming eligible for VAT deregistration. The failure to submit the application within this timeframe will attract a penalty of AED 10,000.
Just like VAT, before initiating the liquidation of the company, it must be ensured that subsidiary or branch, if any must be closed before closing the parent company because once parent company is liquidated, it is not possible to liquidate its branch or subsidiary company due to the want of the board resolution by the parent company to liquidate the branch or subsidiary company
For the completion of the liquidation process, the companies need to obtain the following clearances,
- Clearance from SAIF Zone Post Office after returning PO Box Keys
- Clearance Certificate from Customs
- Clearance certificate from the SAIF Zone Facilities Management
- Clearance from Customs
5) Visa Status Report
A visa status report is required to be submitted to the SAIF Zone Authority, which contains remarks about the application for Visa cancellation or transfer. The companies need to ensure to apply for cancelling all visas, ID cards, and immigration cards.
6) Liquidation Report
The companies need to submit the liquidation report to the SAIF Zone Authority to close down the entity. The liquidation certificate should be provided by the company’s auditor.
7) Hand Over the Keys
The management needs to get a clearance certificate from the Saif Zone Facilities Management. The clearance certificate has to be submitted to the Leasing, Licensing & Legal department along with the leys of the premises.
8) Settlement of all Outstanding Dues
All the outstanding payments must be settled with SAIF ZONE’s Finance & Accounts Department. The dues include the overstay charges until the date of the cancellation of all the visas and returning over the premises keys (whichever is later).
9) Documents to be Submitted
It is mandatory for the companies to return the following original documents to the SAIF Zone Leasing, Licensing & Legal Affairs:
- Tenancy Contract
- Memorandum & Articles of Association
- Investment Service Agreement
- Share Certificate
- Certificate of Incorporation
10) Final Refunds
For any refund of available credit balance & lease deposit, a refund request letter has to be submitted to the SAIF Zone Finance & Accounts department after the completion of the company liquidation procedure and finalization of the accounts. The refund will be in the name of the company unless stated in Board Resolution. The companies are required to obtain a final visa status report with no objection from the visa department and the Leasing, Licensing & Legal Affairs. After that, they should submit the original deposit receipts.
Why Choose the Company Liquidation Service of Jitendra Business Consultants?
From the appointment of a registered liquidator to the deregistration of the VAT account, the company liquidation process in SAIF Zone is a complex process that requires expert assistance. The liquidation process requires an extensive list of documents that need to be prepared properly and submitted to the Free Zone Authority. The companies will be often under pressure during the liquidation process but they also need to ensure all the paper works are done properly. This is where a top SAIF Zone liquidator like the Jitendra Business Consultants (JBC) comes to the aid of the companies. JBC is a reputed SAIF Zone-registered liquidator firm with years of experience in providing the company liquidation services. JBC’s highly qualified liquidators will take care of all the liquidation document preparation, utility cancellations, clearance certificates, bank account closure, VAT deregistration, audited financial statements for liquidation, and a final liquidation report to make the insolvency process hassle-free.