Company liquidation in Dubai Healthcare City involves a series of highly streamlined steps and compliance requirements. The liquidation of a company Is considered as one of the robust exit strategies for investors and other stakeholders. However, business owners may decide to wind up their company due to a wide range of reasons including debt, loss, lack of demand for products in the market, financial stress, discord between shareholders etc. Achieving the objective is also a common reason to wind up a company in Dubai.
Whatever be the reason, the investors can opt for voluntary liquidation in Dubai Healthcare City to close down a company. However, business owners need to ensure compliance with the latest regulations such as Ultimate Beneficial Ownership (UBO), VAT De-registration, and Economic Substance Regulations (ESR) to avoid hefty penalties. Such challenges can be navigated by hiring company liquidators in Dubai who provide compliance services as well.
In light of the new regulations, investors must understand how to wind up a company in Dubai Healthcare City without any hassle. This blog intends to provide you with all valuable information on closing down a company in Dubai Healthcare City. Read ahead to know all the critical steps of company liquidation in Dubai Healthcare City:
Notifying the Authority
The shareholders or business owners must notify the Dubai Healthcare City Authority about the liquidation of the company. The free zone authority must be informed about the reason to liquidate the company.
Shareholders of the company must pass a resolution regarding their company’s liquidation in Dubai Healthcare City. The resolution must state the reason to liquidate the company as well as the appointment of a company liquidator. The name and address of the company liquidator in Dubai must be included in the resolution. The resolution must be signed by all shareholders and it must be notarized & attested up to the UAE embassy level.
Letter of Acceptance from Liquidator
The company liquidator should send a letter to the free zone authority confirming the appointment. A company liquidator can be any audit firm holding a valid license to operate in Dubai, UAE. It is advisable to appoint reputed and experienced company liquidators in Dubai to execute all the steps without any delay.
Letter of Confirmation on Liabilities
The liquidator should send a letter of confirmation to Dubai Healthcare City Authority stating that
the company does not have any outstanding debt claims or liabilities to employees and any third parties.
No Objection Certificate from Landlord
A No Objection Certificate (NOC) must be secured from the landlord before vacating the premises. The NOC should specify the date on which the company would vacate the premises. The latter is proof that the company doesn’t have any outstanding liabilities towards the landlord.
An advertisement regarding the company liquidation in Dubai Healthcare City must be published in two local daily newspapers (Arabic & English). The advertisement should state a notice period of 15 days to the public to raise any claim air objections. Any claim or objection raised after 15 days will not be entertained by the Dubai Healthcare City Authority.
Return of Original Documents
As per the rules of company liquidation in Dubai Healthcare City, certain original legal documents issued by the Authority should be returned. These original documents include Articles of Association (AoA) and Memorandum of Association (MoA).
Cancellation of Visas
The business owners must make sure to cancel the visas of all the employees and partners. Clearances must be obtained from the Immigration department and Labour department. The company must cancel its establishment card after the visa cancellation.
Closure of Bank Account
Bank accounts of the company must be closed. A letter of closure must be obtained from the bank to confirm that the company has no outstanding liabilities with the bank.
Clearances from Authorities
Clearance must be obtained from the following departments and government authorities:
- Dubai Healthcare Authority Finance Department
- Dubai Customs
If the company is already registered for VAT, you should apply for VAT deregistration before commencing the liquidation process. As per the UAE VAT Law, a VAT registrant must apply for deregistration within 20 days of becoming eligible. Failing to apply for VAT deregistration will lead to penalties up to AED 10,000.
Compliance with Economic Substance Regulations
Companies undergoing liquidation in Dubai Healthcare City are required to annually assess whether they are obliged to meet ESR requirements. Companies that carry out any of the nine Relevant Activities in the UAE are subject to ESR requirements such as Notification filing, Report submission and meeting Economic Substance Test. The assessment should be based on Relevant Activities such as Banking, Insurance, Lease-Finance, Investment Fund Management, Holding Company, Headquarters business, Shipping, Intellectual Property and Distribution & Service Centre business. Non-compliance will lead to hefty administrative penalties.
Ultimate Beneficial Ownership Regulations
Business owners should hand over the Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the free zone authority within 30 days of appointing the liquidator. The liquidator or administrator is also required to maintain the RBR and PSR for at least five years from the date of liquidation of the company. Non-compliance with UBO regulations will result in hefty administrative penalties.
Submission of Liquidation Report
At the final step of company liquidation in Dubai Healthcare City, the liquidator will submit the final liquidation report to the free zone authority. Once the liquidation report is submitted, the free zone authority will strike off the company’s name from its register. Thereafter, the free zone authority will cancel the trade license of the company.
Hire the Best Company Liquidators in Dubai, UAE
Company liquidation in Dubai Healthcare City is a complex process that warrants diligent execution. Appointing experienced company liquidators in Dubai with a good reputation is critical to the successful completion of the process. Jitendra Business Consultants (JBC) is a leading provider of company liquidation services in Dubai. JBC assist business owners in closing down free zone, mainland and offshore companies. JBC has a qualified team of professionals who can easily resolve complex regulatory requirements such as ESR and UBO. Consult with JBC’s company liquidators in Dubai today to liquidate your company without any hassle.