Is appointing a liquidator mandatory during Liquidation?

Dear Questioner,

Appointment of a liquidator is mandatory for liquidating LLC. Please note the stages explained below for completing the procedures of liquidation.

The process involves two stages:

Stage 1:

1. Prepare notarised minutes of the general assembly confirming the company liquidation and the appointment of a liquidator.

2. Arrange an official letter by a registered liquidator accepting the duty.

3. Apply for cancellation by filling the required form through DED or other approved channels. DED will issue a liquidation certificate.

4. Publish the notice of liquidation in two local newspapers.

5. The notice gives the debtors a grace period of 45 days from the date of issue to submit their claims.

Stage 2:

1. Submit to DED a declaration letter from the liquidator and the partners indicating no objection from any other parties during the grace period.

2. Collect the required approvals of other government bodies to cancel a licence.

3. Cancel the firm card at the Ministry of Human Resources and Emiratisation.

4. Cancel the foreign partners' visas sponsored by the company at the respective General Directorate of Residency & Foreigners Affairs.

5. Submit all the above documents to get the approval for final cancellation. DED will determine the fees.

6. You can receive the certificate of deregistration (cancellation) after paying the requested fees.

Further, if you want to keep your license inactive, you have that option for three years by paying a freezing fee.

Thank you.

Regards,

Rajasree Ravivarma

+971544461746