If you’re a business owner considering closing your company in Abu Dhabi, understanding the process of company liquidation is crucial. Liquidation is a formal procedure where a company legally shuts down and settles all its obligations. At Al Tawakkal, we help make the business liquidation process smooth and stress-free.
What is Company Liquidation in Abu Dhabi?
Company liquidation in Abu Dhabi refers to the legal process of closing a company by selling its assets to pay off liabilities. Once the process is complete, the business license is officially canceled, and the company is removed from the commercial register.
Why Liquidate a Company?
There are several reasons business owners choose liquidation, such as:
- The company is no longer profitable.
- Change in business strategy.
- Partnership disputes.
- Expiry of license or inability to renew.
Steps to Liquidate a Business in Abu Dhabi
At Al Tawakkal, we help you navigate each step of the liquidation process:
1. Board Resolution: Drafting and notarizing a resolution to liquidate the company.
2. Appointing a Liquidator: A registered liquidator (like Al Tawakkal) must be appointed to carry out the process.
3. Canceling Visas & Labor Permits: All employee visas and labor-related matters must be resolved with MOHRE.
4. Clearances from Authorities: Get clearance from government entities like:
- Ministry of Human Resources and Emiratisation (MOHRE)
- Federal Tax Authority (FTA)
- Emirates Telecommunications (Etisalat / DU)
- Abu Dhabi Municipality
- Waste Management Authority
- Water and Electricity Department
5. Advertisement Period: Publish the liquidation notice in two local newspapers. A 45-day period is provided for creditors to submit claims.
6. Final Audit Report: Once all liabilities are cleared, submit a final audit report by the liquidator.
7. License Cancellation: Submit final documents to DED to officially cancel the trade license.
Documents Required for Company Liquidation
- Trade license copy
- Shareholder passport and Emirates ID copies
- Power of attorney (if applicable)
- MOA (Memorandum of Association)
- Chamber of Commerce certificate
- Establishment card
- Lease agreement
- Audit reports and financials (if required)
Why Choose Al Tawakkal for Business Liquidation in Abu Dhabi?
- Expert guidance on every step of liquidation
- Professional liquidator appointment and reporting
- Fast government clearances and follow-up
- Complete documentation and license cancellation
Final Thoughts
Liquidating a company can be complex, but with the right support, it becomes manageable. At Al Tawakkal, we’re committed to helping you close your business efficiently while complying with all legal requirements. Contact us today to start your company liquidation in Abu Dhabi with expert support.
