If you wish to close a business or remove your company name from the UAE market, first and foremost you will have to inform the free zone authority before the closure of the company. After that, by appealing the print media, you will also have to publish authentic data on the Arabic newspaper stating the strike off of the company name.
Following this, you will need to approach the government or free zone authority to pass a No Objection Certificate (NOC) stating your concerns. After this, you can easily start the procedures for cancelling the employee visas and work permits. As soon as you close all the concerned bank accounts, the free zone authority of UAE will pass an official termination letter to remove your company name in UAE.
Important Factors Contributing to the Removal of Company Name in UAE
- Cancelling of License: It is important to apply for the cancellation of your trade license so that the UAE Government is well-aware of your withdrawal from the market. This will not only legalize your action of withdrawing your company name but also succumb you from payments of any additional charges or taxes for holding business in the economy.
- Appointing a Liquidator: If your business type includes a general partnership or liability, public or private joint-stock company, or a simple limited partnership then you would have to appoint a liquidator to distribute and equalize the profits earned or the losses incurred among all the heads concerned.
- Freezing of License: Previously, we discussed how the cancellation of license could benefit you but here we will take into account the freezing of the trade licenses. This too is a legal procedure that could be carried out by notifying the government authorities concerned and paying certain freezing of trade license fee to the government. Note that the freezing period of the trade license is only up to 3 years and it cannot be extended any further.
Conditions on Removal of Company Name in UAE
Before going onto the details of how you can withdraw your company name from the business hub of UAE, we would draw your attention under what circumstances could you step back from this business plan. The following three conditions are the circumstances for which you can strike off your company name from the UAE market.
- Bankruptcy: If a company goes bankrupt and is unable to provide for its customers and employees, then it is likely that the owner could appeal the concerned government authorities to strike off their company’s name from the economy of UAE. This legal action is carried out under the UAE Commercial Transactions Law No.18 of 1993.
- Out of liabilities: When a company in UAE runs out of liabilities or has no liabilities then it could strike off its name from the market. Even if the company starts with a condition of solvency, ending up discharging all the liabilities, it holds within six months’ time frame then also the company could back off.
- Winding up the creditors: The resolution to remove the company name in UAE is agreed upon when a meeting is held with all the creditors of the company concerned, whereby the accounts are summed and cleared in accordance to the terms and conditions laid down by the company.
Thus, these are three of the ways by which you can withdraw your company name from the market. However, the above-mentioned important factors discussed in context to the striking off of the company name is also very vital which you should glance upon before applying for the removal of the company name in the United Arab Emirates. GCC Filings is your best guide for anything related to company incorporation, taxation, laws, apply for VAT registration in UAE and so on.