Q: Is it possible to liquidate a company without a liquidator service? The company is LLC.

Q: We formed a company in Umm Al Quwain Free Zone in 2018 and the license expired in August. One of the investors in on the company visa (his visa is valid). We want advice on the following: 1. We want to close the current company. 2. Are all the partners/shareholders required to personally visit to complete the closure formalities? 3. Since its formation, the company has not conducted any activities. What will be its liabilities? 4. What's the process for cancellation?

Q: I am a partner in an LLC registered in Dubai, whose license was expired in Nov 2017. I was a passive investor stationed in India and the company was managed my senior partner and MD (Managing director) of the company who was stationed in Dubai. The company was not managed well, the licenses were not renewed and the business activities did not take place. My last visit was in May 2017. The MD of the company is still in Dubai on an earlier visa but didn't get in touch with me and he's not reachable. Now, I want to start a new venture in any free zone on an individual basis. How can I cancel the earlier visa and get a new investor visa in the free zone? Is it necessary to liquidate the old company in order to cancel the visa? Is it possible for me to cancel the visa on an individual basis and apply for new company formation? Please guide me.

Q: My trade license expired and I couldn't renew it for the last two years because of a loss in my business. Can I cancel my license? What is the procedure for that? Please guide!

Q: I posted a question about closing a large business ($400.000) loan for our Florida start-up company to be manufacturing. We were told: "... partners who reside in countries with travel restrictions or medical conditions will be represented by the UAE central bank legalization officer who shall oversee the entire process in their absence in line with UAE COVID-19 safety measures. Furthermore, you the beneficiary is expected to take full responsibility for the legalization cost of all documentation to be used in this transaction at the Dubai magistrate court with the assistance of the UAE central bank official who shall represent you in the entire process of this transaction." The quoted fee was $6,800 to be paid in advance or at closing if we attend personally. Does this sound like a legitimate procedure for using an agent to sign loan documents? How can we conduct due diligence on this investment firm based in Kuwait to be sure we are dealing with the actual company? Thanks.

Q: I have a property in Hydra Zone 8 in Abu Dhabi which was under construction for a long time. A few years ago, the company got bankrupted and the restructuring of Hydra LLC was done. During that time, the restructuring committee asked for the name of creditors through newspapers which many people missed, Some were not in the UAE and some did not read the newspapers. Now I need advice on how to get my name added to the list of creditors. There are many more people who would want to the same service.

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?

Q: Dear Sir/Madam, Greetings! I registered a company in Dubai a few months ago but no activities took place and my license expired six months ago. I also have a business bank account. Is it possible to close the company and the bank account without incurring any fees or charges? My company is a sole establishment.

س: السلام عليكم، أرجو أن تمدوني بمعلومات حول غلق المحل التجاري. وشكرًا!

Q: I am a 50% shareholder in a company at RAKEZ, and the 50% shareholder is my partner who has left the country and will not return. I cannot run the company alone. Next month the company is due for renewal, the expenses of which I cannot afford. I want to close the company. RAKEZ people say file a case and bring court papers to close the company. Where can I go, what should I do, can I get help? I do a small job in the shop.

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.

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.

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.