The Whole Process of Cancellation of Abu Dhabi Company: Compliance Operation and Risk Prevention and Control

For mainland investors operating in Abu Dhabi, the company's cancellation is by no means a simple "laissez-faire" exit, but a systematic project that requires strict compliance with local regulations. If the process is not legally canceled, shareholders will not only face high fines, but may also be included in the UAE commercial credit blacklist, affecting future market access.

Abu Dhabi Company Cancellation Conditions

1. Debt zeroing:

all supplier payments, employee salaries, government taxes (e. g. VAT, corporate income tax) and potential fines are to be settled. If there are outstanding debts, creditors may object during the announcement period, resulting in an interruption of the process.

2. License Compliance:

the business license must be in a valid state with no unprocessed violation records. If the company is fined for failing to submit financial reports or renew its license on time, the fine must be paid first.

Termination of labor relations:

all employee visas must be canceled by the UAE Immigration Bureau and a certificate of cancellation of the labor card must be obtained. Failure to cancel the visa may result in subsequent legal disputes for the employee.

4. Dissolution of the lease contract:

it is necessary to negotiate with the landlord to terminate the office space lease contract and obtain a written termination agreement to avoid subsequent rent disputes.

Abu Dhabi Company Cancellation Information

1. Notarization documents:

A notarized resolution of the general meeting of shareholders (to be signed by shareholders representing 2/3 or more voting rights), a letter of appointment of the liquidator and a letter of acceptance.

2. Proof of announcement:

the original sample of the liquidation announcement was published in two local Arabic-language newspapers, with a duration of one day and a 45-day claim period for creditors.

3. Financial Documents:

final liquidation report (prepared by the liquidator, describing the disposal of assets and the settlement of debts), certificate of closure of the company's bank account, certificate of tax cancellation.

4. Administrative documents:

the company's articles of association, a copy of the business license, a certificate of cancellation of the labor card, and the company in the free zone need to submit an additional application form for cancellation of the free zone administration.

Abu Dhabi Company Deregistration Process

commencement of 1. liquidation proceedings

RESOLUTION OF SHAREHOLDERS AND APPOINTMENT OF LIQUIDOR

the Company shall be dissolved by resolution of the general meeting of shareholders and a liquidator shall be appointed. Resolutions must be notarized and submitted to the Ministry of Economic Affairs for the record.

Public Notice and Creditor Notice

the liquidation announcement was published in the UAE Gazette and a local Arabic language newspaper, specifying the deadline for creditors to file. The announcement must include the company name, registration number, liquidator contact information and claim deadline.

Asset liquidation and debt disposal

the liquidator is required to complete the asset assessment, debt settlement and remaining property distribution within 45 days. If the debt exceeds the assets, priority shall be given to the payment of employee salaries, government taxes and fees and supplier payments in accordance with the UAE Business Companies Act. For example, a trading company has insufficient assets due to unsold inventory, and the liquidator raises funds by auctioning equipment to give priority to paying employees three months' back wages.

Application for 2. Administrative Cancellation

labor and Tax Write-offs

cancel all labor cards through the UAE Human Resources Department and obtain a cancellation certificate; after clearing the tax, apply to the tax bureau for a tax cancellation certificate. If the company is involved in VAT, a final VAT return is required.

Bank Account Closed

cancel the company's bank account and obtain a certificate of account closure issued by the bank. Some banks may require liquidation reports and shareholder resolutions as a basis for cancellation.

Free Zone Company Extra Steps

free Zone companies (e. g. ADGM, MASDAR) are required to submit a cancellation application to the Authority and follow its specific process. For example, ADGM is required to file a cancellation notice 30 days in advance and pay an annual license fee up to the cancellation date.

Approved by the Ministry of Economy or Free Zone Administration

submit all documents to the Ministry of Economy or the Free Zone Administration, and issue a cancellation certificate after approval. The review cycle is usually 15-30 working days, which may be extended to 60 days if documents are missing or there are objections.

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