Q: Dear Sir/ Madam, I am a 50% shareholder in an Ajman Free Zone Company. I would like to cancel the licence and close the company as it's contracts have expired. The company has no outstanding debts and owes no money to any third parties. However, it does have some small internal loans taken by directors. In this instance, can the company be closed if an arrangement between directors is agreed to and formally documented?  

Q: I opened a free zone company in Dubai 11 years ago. There was no trading activity and has been none since. I closed the company remotely as I was unable to travel to Dubai at the time for health reasons and completed forms necessary, had them notarized here in Europe and translated by a registered translator. All documents sent to the agent in Dubai with a POA but I was informed that they were not accepted by Dubai authorities and that I would have to travel there to close. The bank account was also closed at the time remotely. If I travel to Abu Dhabi will I face problems?

Q: Hi. Kindly advise regarding: (1) Closing a professional civil company (management consultancy) in Dubai with 4 partners + 1 local agent. There are 4 partners (all family members) who are out of the UAE. 2 partners have investor visas & 2 have partner visas. 3 visas have expired during July-Sept 18 and 1 Investor visa expiring 17/11 as being out of the country for 6 months+. Online at www.gdrfa.ae on logging in, the 3 expired visas are showing 'Inactive'. Does it mean visas are automatically cancelled & they can come on visit OR visas have to be physically cancelled at the immigration dept? The company has no assets/liability. We want to close the company. The company's labour est card is already cancelled. (2) Effect of a partner's personal credit cards' liability on the company as a he is a partner. In the above company, 2 partners have credit card dues. Is there an impact on 2 aged partners coming back to the UAE if the banks file cases & secure order on attaching the defaulting partners share in above company? (There is no business/assets). Can the 2 partners be harassed in UAE?

Q: My civil company has 2 partners. Both are 50% of the shares. Our company lost a court case and has to pay AED 200,000 to the creditor. The creditor started an execution case. Questions: A) Can I pay my 50% share (AED 100.000) and ask for my name to be cleared from the case (then the execution case will only be between the creditor and the other partner, for the remainder of AED 100.000)? Or that is not allowed while the civil company is still in existence? B) Is it possible to liquidate the company and then the execution lawsuit will be broken into two parts (Part 1: Creditor and partner 1 for AED 100,000, Part 2: Creditor and partner 2 for AED 100,000). If yes to the above questions, please be kind to inform the process. Thank you!

Q: I am a company owner In Shams free zone of 50 per cent share and have a partner visa. My partner was a Russian who went to Russia and died. When I went to the free zone to cancel my visa and close the company, they have asked me to get his attested death certificate and NOC from his heirs. The problem I am facing is his family doesn’t want to give the death certificate nor they want to give NOC. Now my resident visa validity is over and I am on fine every day. Neither the free zone is cooperating nor the partner's family. What is the other way I can cancel my visa and close the company? Can someone guide me, please?

Q: Hi, We have a professional services license (2 partners) + 1 local service agent registered with DED, Dubai. The partners wish to close the business because of unavoidable circumstances. We wish to proceed with all the necessary paperwork for cancellation. Unfortunately, the local service agent is not available. We have been trying to connect to him multiple times but have not been able to reach him. The due date for the renewal of the company is coming up and we want to proceed with all the paperwork for cancellation prior to that. Kindly advise us about the options if the local service agent is unavailable.

Q: I had a professional service company in a partnership licensed by DED, Dubai. There were some issues and we decided to sell the license. The sale was completed with the sale deed registered in a Dubai court in Feb 2020. However, the new owner failed to renew the license and update the records with DED, Dubai. Therefore, I am still registered as the owner and manager of the license with the DED. In this scenario, who is the legal owner now, and what are my options to remove my name from the license or to close it?

Q: How can I remove my shareholder name from a professional license in Dubai economy? And how can I cancel my partner visa from this license? Kindly help me!

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

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 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.