Winding-up Business in the UAE
Type
E-journal
Date
19 Jul 2012
Jurisdiction
United Arab Emirates
Taxonomy
Companies & Corporate Bodies, Liquidation, Company Secretarial
Copyright
LexisNexis
Relevant company
Hadef & Partners
Legal reference
Federal Law No. 8/1984
Analysis
In the wake of the economic crisis many investors have abandoned their businesses, belongings, and liquidated bank accounts, leaving behind unpaid debts to creditors and employees. Foreign entities that have not satisfied all formal closure and deregistration procedures are liable for non compliance with the deregistration requirements as set out by the licensing authorities, and could face civil and criminal liabilities.
This article sets general guidelines regarding proper closure of foreign companies, branches and representative offices:
In Brief:
- The investor must satisfy the de-registration requirements set by the government authorities.
- The government authorities will not de-register the foreign company unless they ensure that the investor has fulfilled its contractual obligations and liabilities towards third parties and paid the de-registration and cancellation fees.
- Public announcement of the investor's willingness to close the business and notifying the creditors of the investor's intention to de-register the foreign company and liquidate the assets is required by law.