Q: Hi. I would like to file for bankruptcy for one of my mainland LLC companies under the new bankruptcy law in the UAE and would like to connect with law firms that provide this service. For the first meeting with such law firms, I am looking for free consultation only. Thanks.

Q: My FZ company has lost its major clients and is no longer able to trade. It has one creditor with an outstanding balance of AED 120,000. What are my options to close the company down and what are my liabilities regarding the debt?

Q: Hi Rajasree, I am trying to seek help for my brother's business in the UAE which is under financial distress right now and some cheques have bounced. Additionally, labour payments were not done for the last 3 months. His health deteriorated due to the stress and he left the country about 1.5 weeks ago. We would like to file for bankruptcy and liquidate the business. Please let me know if your firm can help with this. Thanks. Best regards, A.Dec

Q: Hi, I have an LLC company here in the UAE. Due to financial difficulties, I am not able to run it further. Hence I have decided to shut down the company. I want to check how much notice do I need to give to the employees. All the employees are on limited contracts. Can I issue a 30 day-notice period letter to them for operations closure? I will give the salary to them till the last day of their service and will also provide them with airfare to get back to their home countries after visa cancellation. Also, I want to write in the notice period letter that if at all I find any suitable buyer for the company, the company shall continue under the new buyer's name. But if no suitable buyer is found till the notice period ending, I shall liquidate the company. Kindly advise on the legal complications involved in this!

س: السلام عليكم، ما المقصود بحل الشركة ذات المسؤولية المحدودة؟ وكيف يتم حلها؟ ومن له الحق أن يطالب بحل الشركة؟

س: كيف يمكن لشركة ذات مسؤولية محدودة أن تعلن إفلاسها؟

Q: Dear sir/madam, What is the difference in procedures and possible outcomes between the following? A. Creditor of a company starts a lawsuit to liquidate the company versus, B. One of the partners of the company starts a lawsuit to liquidate the company. The partners do not agree to mutual liquidation. However, neither of the partners wishes to be detained for embezzlement, etc and they want a quick resolution of the matter. Which option is better for liquidation?

The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

The Emirate of Dubai has announced recently some government fee waivers as a part of its relentless pursuit to maintain an investor-friendly environment and keep providing incentives which you can rarely find anywhere else.

Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.

للشركات كما للإنسان، دورة حياة. وحيث يبدأ الشيء، فلا بد له من نهاية، ولا باقي إلا الله. وإنه حيث نظم القانون نشأة الشركة، وعقد تأسيسها، فإنه كذلك لم يغفل تنظيم قواعد حلها وتصفيتها، ذلك لأن هذه القواعد بالغة الأهمية والحساسية، فهي تنظم طريقة أداء ديون كافة دائني الشركة، وتحصيل حقوقها، وتوزيع الأرباح أو الخسائر على الشركاء بعد بيان ما لها وما عليها. ونعرض في هذا المقال لهذه الإجراءات بحسب ورودها في قانون الشركات الإماراتي بإيجازٍ غير مخل.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.