Complete Guidelines on Company Liquidation In DMCC

The Dubai Multi Commodities Center, or DMCC, is a hub of business opportunities for entrepreneurs as well as existing businesses. While the DMCC provides several easy terms for setting up businesses, there are certain liabilities during DMCC company liquidation that need completion and abiding.

This article mentions and explains these processes in detail for better understanding and guidance.

Means of Company Liquidation in DMCC

There are several types of company liquidation in DMCC UAE. They are:

Summary Winding Up: In this type, the Directors of the company declare that they can liquidate the company fully within 6 months of process initiation.

Solvent Winding Up: This is the situation where the Directors declare that they can fully liquidate the company in the time span of 12 months.

Insolvent Voluntary Winding Up: A process in which the creditors of the company participate in company liquidation

Involuntary Winding Up by the Competent Court: In this case, the court takes the decision to liquidate a company. This can be due to a number of reasons, such as a serious violation of the rules and regulations of DMCC, or the company being struck off.

Prerequisites

• The organization undergoing liquidation can be an independent company, or a branch of an existing company winding up its operations from the DMCC
• The license of the liquidating company can be:
  • Active
  • Dormant
  • Suspended
  • Expired
  • Terminated
• If the liquidating company performs any regulated activity, it needs an NOC from the Regulatory Authority
• The liquidating company must appoint a liquidator to carry out the process. However, branches of existing companies do not require a liquidator to perform these actions. In their case, the Director of the parent branch carries out all duties otherwise performed by a liquidator.

Company Liquidation Process In DMCC

1. The company selects the relevant service in DMCC’s online portal. It selects the amendment required, that is, company liquidation, chooses the type of liquidation, and selects either Standard Resolution or Non-Standard Resolution. The dmcc portal issues a notification of submission to the client.
2. The DMCC Authorities contact the company to find a possibility of retaining the company. This process ensures that there is no solution except company liquidation. This process indicates the willingness of DMCC to retain and preserve businesses and protect their interests. In case the company agrees to retain the company, the application cancels. In any other case, the DMCC issues a notification to the company to proceed with the liquidation process.
3. The company provides a number of information in the online portal. This information includes:
   1. Information of appointed liquidator (valid for companies only)
   2. Information of the person who is being given access to the new portal
   3. Upload necessary documents
   4. Finalize application
   5. Make the required payment
4. The DMCC authorities review the application. They review all provided information and associated documents. The applicant company may need to provide additional documents to DMCC as per its demand. The company has to update those documents in the portal steps.
   1. If the application is rejected, the DMCC returns the submitted processing fee to the company by submitting it to the portal account created for the company. The Knowledge and Innovation fee of AED 20 is non-refundable and is thus, retained. The DMCC closes the liquidation application.
   2. In case the DMCC approves the application, the client receives an approval notification and may proceed with the liquidation process.
5. The DMCC entity submits all needed original documents to the DMCC Client Service Center. It then applies for the cancellation of work visas of all employees and any permits issued by the DMCC.
6. The DMCC cancels all visas, permits and accesses of all employees and initiates the publication process. The initiation process continues for 14 days.
7. The company submits the final report of completion of company liquidation in DMCC 

The DMCC updates the company account. The company dissolves, and its branches are removed from the DMCC’s list of registered companies. The process closes and the DMCC issues a termination letter and branch removal confirmation to the company or branch.

About BS Auditing

The process of liquidation of a company in Dubai is lengthy and rigorous. Only a professional liquidator who understands his tasks and obligations may properly complete the procedure. In every free zone, BS Auditing of Accounts has the best specialists with extensive knowledge and skills in the company liquidation process in Dubai.

Book your consultation today for a successful liquidation process. For detailed guidance and assistance, feel free to contact us:

• Office # 0641, Tamani Arts Offices, Business Bay, P.O. Box 111390, Dubai, UAE
• +971 4 570 7357
• +971 58 108 5690
• info@bsauditing.com