One of the top free zones in the world and one of the fastest growing is JAFZA (Jebel Ali Free Zone UAE). JAFZA hosts and provides housing for more than 120 of the 500 tycoons from diverse countries throughout the world. It is the most important factor in the booming UAE economy. JAFZA’s unrivaled reputation shows creativity and pioneering dynamism.
A business cannot just sell itself to someone and assume that it can instantly shut down without terminating its trade license in JAFZA, whether it be an offshore corporation or a JAFZA free zone company. In this article, we’ll give you information about the entire process of JAFZA Company Liquidation.
JAFZA Trade License Cancellation
JAFZA is one of the free zones in the world that is expanding the fastest. In JAFZA, the liquidation procedure begins with the appointment of a qualified liquidator to close down the business. When a corporation collapses, it must liquidate itself. The companies are sometimes forcibly disbanded. There are various sets of regulations for operating a business in JAFZA. In the United Arab Emirates, the local administration is in charge of setting the rules.
No entrepreneur would want to squander their time on a project with little chance of success. Therefore, it would be wise for the business to begin liquidating the company in JAFZA as soon as possible. You will receive assistance from an approved liquidator in JAFZA in learning the rules and carrying out the company deregistration in JAFZA.
Documents Required for JAFZA Company Liquidation
- Cover letter from the registered agent for a business closing
- To deregister a corporation, it must be current and renewed.
- letter from the shareholder requesting the liquidation of the company.
- Shareholders’ Original Certificate of Formation Resolution for the Liquidation of the Business and the Appointment of Auditor
- the initial MOA/AOA (2 nos.)
- Resolution of the original shareholders, if any; declaration of the auditors regarding the business’s liquidity
- Original letter of bank liquidation
JAFZA Company Liquidation Process
The steps that the company liquidation in JAFZA requires to carry out for a firm liquidation are as follows:
- The authorities will receive a deregistration form filled out and submitted by the free zone companies, along with all original company documentation.
- The company will then set up the exit interview, during which they will inform the authorities that they intend to wind up.
- The businesses that have leased the properties must inform the JAFZA’s lease department. Notice should be given three months in advance for warehouse and office facilities and six months in advance for land facilities.
- The business will subsequently receive a formal letter of customs clearance from Dubai customs. This letter will serve as documentation that all customs-related issues have been resolved by the business.
- The corporation will receive confirmation from RTA, DEWA, and Etisalat, which will serve as proof that no vehicles are registered in its name and that all fees have been paid.
- After that, the business will get approval from JAFZA’s Finance Department. The appointment letter for the company liquidation in JAFZA must be provided before the department issues the clearance.
- The visas that were issued in the company’s name must be revoked. Additionally, the business must guarantee that the employees get their gratuities.
- Once the business has received all necessary clearances, The company’s intention to liquidate will thereafter be announced by the JAFZA authority for 15 days in the local newspaper. If someone has a problem with the JAFZA liquidation/ company winding up during this time, they can let the authorities know.
- The corporation can be deregistered and the license terms will be completed once the 15-day period has passed with no objections being submitted. If the business’s license has already expired when it applies to be deregistered, it must first renew the license to proceed with the deregistration process. For each month that the company is late, they will be penalized AED 1,000.
What If a Business Does Not Renew or Terminate License Upon Expiration?
According to business regulations in JAFZA, if a business’ trade license expires and it fails to renew or terminate it immediately, a penalty of a minimum of 1,000 AED will be imposed on the business for every month after expiration until the license is renewed or terminated.
Read More: Cancel Trade License in Dubai Airport Free Zone
Hire Approved Liquidators for Liquidation in JAFZA
If you’re thinking about going through corporate liquidation in JAFZA, remember that you can do it without filing for bankruptcy with the help of an outsourced liquidation service provider in the UAE. We advise you to keep your account books in balance to help you stay in compliance with the regulations. With Farahat & Co, you only need to have a liquidation report and the rest will be done by our field experts. We are one of the most hired approved liquidators in Dubai and other parts of the UAE.
