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

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, 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، هل يعتبر الإيجار عقدًا مضافًا لأجل؟ وشكرًا!

س: السلام عليكم، أود معرفة كيفية فسخ عقد إيجار لشركة مستأجرة مكتب في دبي.

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.

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.