Businesses sometimes need to cease operations for various reasons, such as financial challenges or strategic shifts. In such cases, it is essential to follow the proper company liquidation procedures to ensure compliance with legal and regulatory requirements.
How to you initiate the company liquidation process in Sharjah?
There are three main ways to begin the process of company liquidation in Sharjah:
- If the company has previously completed transactions via the online portal, liquidation procedures can be initiated through the Authority Portal Account directly using login credentials.
- Through visiting the Sharjah Economic Development Department (SEDD) to complete the necessary procedures in person.
- Through Authorized Third-Party Centers that are accredited service centers who can assist in processing the required steps for liquidation.
Required Documents for Company Liquidation in Sharjah:
Before starting the liquidation process, you must prepare the following documents:
1. Legal Documents:
- Certificate of Corporate Tax Registration
- Passport Copy of Shareholders
- Power of Attorney (if applicable):
Note: If any shareholders are outside the UAE, a notarized Power of Attorney must clearly state that the designated representative has the authority to proceed with the liquidation.
2. Financial Documents (Required for Liquidation Report):
- Signed and Stamped Audit Report (Previous Financial Year)
- Trial Balance, Balance Sheet, and Profit and Loss Statement (up to the date of the shareholders' resolution to liquidate)
- Valid Tenancy Contract
- Financial Transactions Related to Liquidation (e.g., legal expenses, company closure costs, etc.)
- Bank Statements (until the account is officially closed)
General Process of Business Liquidation in Sharjah
- Cancellation of Business-Related Services - This includes the establishment card, employee visas, labor permits, and immigration records.
- Shareholders' Resolution & Initial Liquidation Meeting - All shareholders must attend the resolution meeting in the UAE unless a digital signing option is used.
- Appointment of an Approved Auditor - An auditor must be selected, and their acceptance must be documented as part of the auditing procedures.
- Newspaper Publication of Liquidation Notice - The auditor will determine the required publication period, typically 45 days.
- Final Auditing and Submission to Authorities - The auditor will prepare a liquidation report, along with proof of the newspaper publication, and submit the documents to the relevant authorities.
- Final Cancellation with SEDD - The last step involves officially cancelling the company's registration with the Sharjah Economic Development Department.
By following these steps, businesses can ensure a smooth and compliant process of company liquidation in Sharjah. For further assistance, consulting with legal and financial experts is recommended.
Liquidation Processing Time
The estimated time to complete the liquidation process in Sharjah is approximately 7 to 10 working days. However, this timeframe does not include the mandatory newspaper publication period, typically 45 days. All steps of the liquidation process are also subject to approval from the relevant authorities.
Key Reminders for Company Liquidation in Sharjah
Before initiating the liquidation process, ensure the following:
- All outstanding financial obligations are settled.
- No outstanding liabilities with the Federal Tax Authority (FTA)
- No bank liabilities (A bank closure letter from your bank must be submitted, or A no-bank-account confirmation if no corporate account exists)
- All Employee visas must be cancelled (An immigration cancellation letter is required as proof)
- Tenancy contract and office lease must be cancelled
- Clearances must be obtained from third-party service providers, including DU, Etisalat, DEWA, and Customs.
- All required documentation should be readily available for submission to authorities
Why Choose Us for Your Liquidation Process?
At Excellence, we handle every step of the liquidation process, ensuring a seamless experience so you can focus on what matters most—growing your business.
1. Complete End-to-End Support:
We understand that navigating the complexities of company liquidation in Sharjah can be overwhelming. That's why we take on the responsibility of managing all necessary documentation and procedures, ensuring a smooth process. Our dedicated team handles the intricacies that come with obtaining approvals.
2. Expertise & Authority Approval:
Our team is made up of specialists who are not just masters in company liquidation but also have recognized expertise in many jurisdictions, including Sharjah, Dubai, and Abu Dhabi. Their wide-ranging experience allows us to provide tailored solutions that adapt to local regulations. Clients are assured of their cooperation with professionals who thoroughly understand the legal context to guarantee that every move we make is compliant and effective.
3. One-Stop Solution:
We believe that we ought to make it convenient for our clients. Aside from liquidation services in Sharjah, we are a single-stop financial solution provider. We offer audit and assurance services, taxation services, accounting, among others. The comprehensive approach is such that businesses can rely on us for all their needs without needing to work with multiple different service providers, thus saving money and time as well as consistency in all of the services.
4. Trusted Business Partner:
In today's fast-paced business environment, having a reliable partner is crucial. Whether you are considering closing your business, restructuring for better efficiency, or embarking on a new venture, our team offers expert guidance tailored to your specific needs. We prioritize ensuring full compliance with UAE regulations, thereby minimizing risks and aiding in the decision-making process. Our commitment to your success means that you can have peace of mind knowing that you have a trustworthy ally by your side throughout every phase of your business journey.
Overall, our comprehensive services, expert knowledge, and commitment to guiding our clients through complex processes are just a few reasons why businesses consistently choose to place their trust in us.