Should you chose to close your business, it is a requirement to cancel your business license and all associated permits. The process of canceling your business license is dependent on the structure of your company, but in all cases, the relevant government entities need to be informed in order to avoid accumulating fines and penalties.
Requirements of Mainland License Liquidation
The first step for commercial company liquidation is to summon all shareholders for a general meeting and all authorised signatories should sign the board resolution in the notary public office.
Once the shareholders issue a resolution and the liquidator is appointed, the company must apply for an initial liquidation certificate from the Department of Economic Development (DED).
After initial approval, the company must issue a newspaper advertisement in two Arabic newspapers and shall wait for 45 days for any claims or disputes from any third party.
All the residency visas under the company must be canceled, thereafter the company registration with Ministry of Labour and immigration can be canceled with the respective authorities.
Once the 45 days notice period is completed and there are no claims from any third party, the final submission of the documents along with the liquidation report is submitted to the licensing authority for the final liquidation certificate.
The above explanation is for the commercial companies with individual ownership, Different companies with more complex structures may be subject to additional requirements.
To discuss liquidation of a specific company structure, why not book a free consultation with our team?