International Free Zone Authority (IFZA) is a Dubai free zone regulated by Dubai Silicon Oasis Authority (DSOA). The free zone is known for providing progressive and flexible regulations for all types of business requirements including company liquidation in IFZA. However, the introduction of VAT, Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO) has made the process of company liquidation in Dubai more complex. Hiring the best company liquidators in Dubai has become critical for business owners to navigate such complex liquidation procedures.
Read ahead to understand the latest requirements and steps for winding up a company in IFZA:
Shareholder’s Resolution
Shareholders must pass a resolution to start the proceedings of company liquidation in IFZA. The resolution must state the reasons for liquidation and appointment of the official company liquidator. The name and address of the liquidator must be mentioned in the resolution. The resolution must be signed by all the shareholders and must be attested by the Notary Public.
Acceptance Letter from Liquidator
The company liquidator in Dubai must send a letter to the IFZA authority, accepting the appointment. A company liquidator can be any audit firm holding a valid license to carry out its operations in the UAE. Once the liquidator takes charge, the powers of the board will cease and get transferred to the liquidator.
Cancellation of Visas
As per the rules of company liquidation in Dubai, the company should cancel all the visas including that of the employees. Clearance should be obtained from the immigration and labour departments. The establishment card of the company should also be cancelled to progress to the next steps of company liquidation in IFZA.
Obtain Clearance Certificates
All keys to the facilities must be returned to obtain a clearance certificate from the leasing department. The No Objection Certificate (NOC) must mention the date on which the company will leave the premises. NOC should also be obtained from Dubai Customs, DEWA and Etisalat / Du. The company should close the corporate bank account and get a closure letter from the bank.
Newspaper Advertisement
An advertisement on the company’s liquidation must be published in English and Arabic newspapers. A lock-in period of 45 days follows during which creditors or other interested parties can make any claim or raise an objection.
Return of Original Documents
The certificates and permissions issued at the time of company incorporation must be returned while liquidating a company in IFZA. The certificates include the Company Original license, Certificate of formation & Share certificates, and Lease agreement.
VAT Deregistration
Companies that have already registered for UAE VAT must apply for deregistration before starting the process of liquidation in IFZA. As per the VAT Law, an application for deregistration must be filed within 20 days of becoming eligible for it. Non-compliance with VAT deregistration or delayed filing of application will result in penalties up to AED 10,000. Non-compliance with the deregistration process will delay the process of company liquidation in IFZA and business owners must apply early for VAT deregistration. Experienced company liquidators in Dubai can provide robust advice on complying with VAT deregistration requirements.
Economic Substance Regulations Compliance
Companies undergoing liquidation in IFZA must check whether they fall within the scope of ESR. Companies under liquidation in the UAE are legally obliged to meet ESR requirements if they have carried out any of the Relevant Activities such as Banking business, Insurance business, Lease-Finance business, Investment Fund Management business, Holding Company business, Headquarters business, Shipping business, Intellectual Property business and Distribution & Service Centre business. In such a case, the IFZA company should file ESR Notification and ESR Report to avoid hefty penalties.
Maintenance of UBO Registers
Companies undergoing Liquidation in IFZA are required to meet their obligations as per Decision No. (58) of 2020 on Ultimate Beneficial Ownership (UBO). The companies must hand over the Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the IFZA Authority within 30 days of appointing the liquidator. Additionally, the liquidator or administrator should maintain the RBR and PSR for at least five years from the date of liquidation of the company. Non-compliance will lead to hefty penalties, but the best company liquidators in Dubai can help business owners avoid such consequences.
Submission of Liquidation Report
The process of winding up a company in IFZA will conclude with the liquidator submitting the final Liquidation Report to the free zone authority. Once the authority receives the report, the name of the company will be struck off from the register and the trade license will be cancelled. Hire reputed company liquidators in Dubai for presenting an accurate liquidation report to the authority.
Hire the Best Company Liquidators in Dubai, UAE
With the introduction of VAT, ESR and UBO, the process of company liquidation in Dubai has become more complex. In line with this, business owners are compelled to exercise more diligence during company liquidation in IFZA. Since more focus is required on compliance, any misstep could lead to hefty penalties and delays in liquidation proceedings. This is why it is critical to hire the best company liquidators in Dubai such as Jitendra Business Consultants (JBC) for winding up free zone, mainland or offshore entities.
Liquidation is a tough time for business owners and JBC can help them to meet all the compliance requirements and standard procedures without fail. We have sufficient experience and resources to handle all complex procedures including ESR, VAT and UBO. JBC assures you to wind up your company in IFZA hassle-free. Contact our company liquidators in Dubai today to avail the best offer.