Dubai Silicon Oasis (DSO) is one of the well-regulated and highly progressive free zones in Dubai that houses companies from a wide range of industries especially the IT sector. The companies operating in DSO can opt to wind up their operations due to reasons such as change of business strategies, adverse conditions, cash flow issues, and the achievement of business objectives, etc. The process of company liquidation in Dubai should be done as per the laws and regulations and involves a highly streamlined procedure that involves key steps like the appointment of the liquidator, closure of bank accounts, VAT deregistration, etc. The DSO companies need to consult the best company liquidators in Dubai to successfully complete the liquidation process in compliance with the regulations.
The Process of Company Liquidation in Dubai Silicon Oasis (DSO)
1) Notification of Liquidation
The companies can commence the process of liquidation in DSO by submitting a notification to the DSO Authority. The notification should be sent to the Authority three months prior to the liquidation of the company in DSO. The failure to send the company liquidation notification within the stipulated timeframe attracts a penalty from the DSO Authority in the form of a lease agreement cancellation charge.
2) Board Resolution to wind up DSO Company
After submitting the notification on company liquidation in DSO, the directors of the company should meet and pass a resolution that the company would be summarily closed down. The directors should also sign a statement that they have inquired about the company’s affairs and are satisfied that the company,
- Has no assets or liabilities or
- Has assets but no liabilities or
- Is able to discharge all the assets and liabilities
3) Appointment of the Liquidator
As per the regulations, a liquidator needs to be appointed to carry out the process of company liquidation in Dubai. In line with the laws, the directors should pass the resolution regarding the appointment of the liquidator. Any registered audit firm in Dubai, UAE can be appointed as the liquidator.
4) Official Letter from the Liquidator
The liquidator has to submit an official letter to the free zone Authority confirming that he has accepted the responsibility of leading the company liquidation in DSO. Once the liquidator assumes the charge, all the powers of the company directors will cease and will be transferred to the liquidator.
5) Cancellation of Visas and Bank Account
The management of the company should ensure that all the visas including that of the employees are cancelled. Along with the visas, the ID cards and immigration cards should be cancelled to complete the liquidation in DSO without any delay. The bank account of the company should also be closed and an official closure letter from the concerned bank should be obtained.
6) Deregistration of VAT Account
The companies that have registered for VAT in Dubai should ensure that they have deregistered their VAT account. Liquidation is one of the top criteria that makes the companies eligible for VAT deregistration and hefty penalties will be slapped if the companies under liquidation ignore deregistration. The Federal Tax Authority (FTA) mandates that the VAT deregistration must be made within 20 days of the companies becoming eligible for deregistration or else a fine of AED 10,000 will be slapped.
7) Closure of Branches
Before starting the company liquidation in DSO, the company needs to shut down its branches. This is a critical requirement because once the parent company is liquidated it would be technically impossible to wind up the branches.
8) Clearance Letter from Utility Service Providers & Customs
It is mandatory for the company to ensure that they have cleared all the pending dues from the utility providers and other departments. The following clearance checks have to be performed during company liquidation in DSO:
- Dubai Customs Clearance
- Clearance from Etisalat
- Facilities Management Clearance
- Clearance from DSOA Government Services Department
- Clearance from DSOA Finance Department
- Clearance from DSOA IT Section
- Clearance from DEWA
9) Transfer of Intellectual Property Assets
Most of the companies possess intangible assets in the form of trademarks, copyrights, and patents. The company should ensure that all such Intellectual Property Assets registered under its name has been transferred before the conclusion of liquidation in DSO.
10 ) Submission of Premises Keys
The lease agreement with the DSO will be cancelled while liquidating the company and the right use of the premises will also cease. Therefore the company must hand over the keys of the office space, shops, or warehoused during liquidation.
11) Submission of Original Documents
The DSO will ask the company to hand over the original documents and permissions provided at the time of company incorporation. The documents and permissions may include
- License
- Tenancy contract
- MoA & Articles of Association
- Share Certificate
- Certificate of Incorporation
12) Submission of Liquidation Report
The preparation and submission of the liquidation report mark the final stage of the DSO company liquidation process. The liquidator who is a registered auditor prepares the liquidation report which checks the finances of the company. The liquidation report prepared by the audit firm in Dubai ensures that the company has no debts to pay during the time of liquidation. The liquidation report is a key document that proves to the government that the company was used for genuine purposes.
Why Choose Company Liquidation Services of Jitendra Business Consultants?
The process of company liquidation in Dubai Silicon Oasis involves a series of mandatory procedures that need to be executed as per the regulations. From the appointment of the liquidator to the closure of VAT accounts and branches, the companies need the professional assistance of the bets company liquidators in Dubai. Jitendra Business Consultants (JBC) is one of the best business setup consultants in Dubai that also provides company liquidation services in the mainland, free zone, and offshore jurisdictions. JBC undertakes the company liquidation in DSO by functioning as the official liquidator and also assisting in all the steps including VAT deregistration, branch closure, visa cancellation, clearance checks, etc.