An LLC (Limited Liability Company) is the most common business structure in the UAE. It offers limited liability to shareholders, flexibility in ownership, and access to both local and international markets.

Setting up an LLC involves choosing a trade name, obtaining initial approval, drafting a Memorandum of Association (MOA), and applying for a business license.

Liquidating a foreign branch can help close the company’s operations in an orderly manner, ensuring that all liabilities are settled, and regulatory obligations are met.

LLC liquidation requires appointing a liquidator, settling debts, canceling visas and trade licenses, and submitting final audit reports to the authorities.

The liquidation process can take 3 to 6 months, depending on the complexity of the business and the number of regulatory clearances required.

Businesses must settle all outstanding liabilities, including debts, taxes, and employee dues, before completing the liquidation process.

ADMA provides end-to-end liquidation services, from appointing a liquidator to preparing final audit reports and liaising with government authorities to ensure a smooth closure.

No, a foreign company must follow the legal procedures for liquidation, including appointing a local liquidator and obtaining clearance from relevant authorities.

Failure to complete the liquidation process can result in penalties, outstanding liabilities, and potential legal actions from creditors or regulatory bodies.

A liquidator is responsible for overseeing the winding-up process, settling liabilities, selling assets, and ensuring that the company’s legal obligations are fulfilled.

Key documents include the trade license, Memorandum of Association (MOA), final audit reports, and clearance certificates from relevant government departments.

The main difference lies in the regulatory authorities involved. Free zone companies must follow the rules of their specific free zone authority, while mainland companies must comply with UAE federal laws.

During liquidation, the company’s assets are sold, and the proceeds are used to settle debts. Any remaining assets are distributed to shareholders according to their ownership stakes.

ADMA handles all aspects of the liquidation process, ensuring that the company complies with UAE laws, settles all liabilities, and closes operations efficiently.

All employee visas must be canceled as part of the liquidation process, and businesses are responsible for settling end-of-service benefits.

The Dubai Economy and Tourism Department oversees the liquidation of mainland LLCs, ensuring that all regulatory requirements are met before the company is officially closed.

Shareholders’ liabilities are limited to their shareholding in the company. The liquidator ensures that all debts are settled using the company’s assets before distributing any remaining funds to shareholders.

The company must file a final VAT return and deregister with the Federal Tax Authority (FTA) as part of the liquidation process.

The company’s bank accounts must be closed, and any remaining funds are used to settle outstanding liabilities before the accounts are officially terminated.

Once a company has been fully liquidated, it cannot be reactivated. A new company must be registered if the owners wish to resume business operations.