To close an LLC in the UAE , you must firstly ensure that either the shareholders of the company or or their Power of Attorney ,who is approved and attested to sign the Shareholder Resolution to close the company, are available in the UAE A Board Resolution or Shareholder Resolution is to be passed by all shareholders of the company in a general meeting in which the decision to liquidate the company is agreed and a liquidator is appointed (please refer to our article here on engaging a liquidator). A board resolution will need to be drafted and notarised by a UAE Notary Public.
The company will then be required to apply for cancellation of the trade licences through the Department of Economic Development (DED). Following application for cancellation at DED, the following steps must be taken:
Clearance from the Labour & Immigration Department - All work permits and visas for all of the company’s employees and partners must be cancelled. Then the Labour and Immigration files and eChannel (Abu Dhabi) / eDNRD (Dubai) systems can also be closed for the LLC.
Third Party clearances - All licenses must be closed and final closure letters obtained, including Telecom Authority (DU or Etisalat) Electricity and Water Departments, as well as the lease agreement with your Landlord and the Municipality clearance for your office space - Ejari (Dubai) or Tawtheeq (Abu Dhabi).
Bank account closure - All UAE bank accounts must be closed and final closure letter obtained for each bank.
Copy of newspaper report - You must advertise the liquidation in at least 2 Arabic newspapers / gazette. This requires a 45-day advertisement period in Abu Dhabi. The gazette liquidation process is submitted through the DED system in both Dubai and Abu Dhabi.
Liquidator report - Audited accounts will need to be prepared during this period with the liquidator and submitted to the DED as part of the closure. Any creditors will need to be dealt with and settled during this period.
Licence Cancellation certificate - Once all final closure documents are submitted to the DED and approved, the Closure Certificate can be obtained.