HOW TO LIQUIDATE

A COMPANY IN DIFC ?
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Int.
• If your business is forced into going through involuntary liquidation in Dubai
International Financial Centre or you are convinced that DIFC liquidation is your
most appropriate option right now, we recommend you seek the help of approved
liquidators.
Process of company liquidation in DIFC
• First and foremost, you would have to decide that you want the company
liquidation. If there are several directors to the company other than yourself, you
would have to convene with the. During this meeting, a liquidation resolution will
be passed. The resolution has to appoint liquidators DIFC and the official
recognition of the company regarding its insolvent position.
The first stage of company liquidation in DIFC
• All existing staff members are paid off
• An approved liquidator in DIFC is appointed. And the board of directors’ resolution
is attested by a public notary in UAE
• DED fees are settled for the issuance of a certificate of company liquidation
• Public notices are published in two separate Arabic or local newspapers for the
liquidation of company and the waiting period of at least forty-five days for
creditors or partners to raise claims
• The furnishing of a Final Audit Report and copies of the ads from local newspapers
to the DED
The second stage of company liquidation in
DIFC
• Visa cancellation of all directors
• Securing of clearance letter from MOHRE
• Presentation of cancellation certificate, establishment card and request letter to
the Immigration Head Office
How assets are sold for liquidation DIFC
• As part of a company liquidation process, including for a DIFC restaurant
liquidation, an insolvency expert will be arranging for the business’ assets to be
valued by a professional or by a firm of valuers. It can happen in a meeting of
directors or shortly after. Agents will be visiting the premises of the business in
order to produce a complete and exhaustive list of the inventory of the business
and its assets. A valuation will be given and it will be based on a breakup or going
concerned. Take note: there should not be any company asset sold if the meeting
of creditors hasn’t taken place yet. Approved liquidators in DIFC can, however,
speak with all interested parties before the meeting of the board of directors in
order to attempt or increase the value of all potential offers.
Cont.
• The company liquidator that was appointed by the board of directors is under oath
in maximizing the realizations of sale of assets of a company under liquidation. A
company liquidator can sell assets back onto directors regardless of whether or
not creditors or partners are happy with the liquidator’s decision.
Costs of company liquidation in DIFC
• There are fees to be settled with local authorities for the finalization or completion of
company liquidation in Dubai International Financial Centre. An appointed liquidator has
to keep records of transactions and time that is spent on the process of liquidation. It’s
often the case for approved liquidators in UAE to seek a board resolution during the
meeting of directors that costs are settled on a time basis. In any type of liquidation,
whether voluntary or mandatory a liquidator has to set out all the details of costs that
will be paid for the professional’s services. The liquidator also has to get the approval of
the creditors.

• In the event costs of hiring the liquidator to exceed original estimates approved by
company creditors, additional costs will only be settled when creditors all agree in them.
Typically, fees and costs of a company liquidator DIFC are settled by asset realizations.
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