Liquidation/Insolvency
The companies that are established in the DIFC free zone, need to comply with certain regulations that make the financial audit compulsory for the companies. The DFSA (Dubai Financial Services Authority) regulates the audit of the companies established in the DIFC and it is compulsory and mandatory for all the companies to get their audit done.
The financial audit needs to be done at the end of each financial year and should be submitted to the authorities within four months of the end of the financial year. The audit of the financial statements is compulsory as it helps in the improvement of the management of the company and is also a test to ensure that all the rules and regulations have been complied with which must be done from the approved auditors of DIFC.
DIFC is one of the most regulated free zones in the UAE. If you are worried about the future of your company, if your company is in a continuous loses and lack financial resources and if you feel that the company is getting towards the insolvency and if you are planning to wind up the company you need to appoint a liquidator by passing resolution by all the board directors in board meeting.
Almost every free zone has a different method to follow for company liquidation
The process of liquidation of a company in the DIFC are as follows:
A board Resolution needs to be passed and signed by all the Board of Directors for FZC and Branch of foreign/local company. It is imperative that the clause for the closure and authorization is included in the Board Resolution passed. The name and the bank account details of the person to whom all the deposits are to be made after the closing down should also be mentioned.
The Immigration Card should be canceled and the details of the immigration should be obtained and kept as it would later be treated as the invoice by the Visa Department.
At the time of liquidation and after the passing of the Board Resolution, the below clearances need to be obtained for the liquidation procedure to process further –
The keys of the PO Box should be submitted to the DWC Post Office and the clearance should be obtained
Clearance certificate from the DIFC and other government entities, bank.
All the outstanding dues DIFC should be paid and settled including overstay charges until the date of cancellation of all the visas or the handing over of the premises keys, whichever is later.
The accounts are finalized by the finance and accounts department and the customer needs to avail the final visa status report along with the NOC from visa department, from Leasing, Licensing, and Legal affair and submit all the original deposit receipts.
The liquidation process will take effect 30 days after the submission of the required documents and publication of the de-registration notice
ARC Associates is a registered agent in DIFC and provides assistance for company liquidation in DIFC.