What should partners do to close their company in the UAE?

Limited liability companies in the UAE can be dissolved under specific conditions. These conditions include:

Expiration of the term specified in the articles of association and cooperation headings, unless this term is extended according to the articles of association and headings.

Expiration and end of the purpose for which the company was established.

Loss of all or most of the company's funds in such a way that profitability and investment of the funds have been lost.

Transfer of all shares to a number of shareholders or partners less than the legally prescribed minimum, unless the company converts to another type of company within six months from the date of transfer or the number of partners and shareholders increases.

Merger in accordance with the law.

Unanimous agreement among partners for the dissolution of the company, unless a specific majority is determined in the company's articles of association.

Court ruling for the dissolution of the company.

Steps for dissolving a company in the UAE

According to Article (304), if the partners agree to dissolve the company, the agreement must contain the methods of dissolution and the name of the liquidator. According to this article:

None of the partners or shareholders has the right to request a portion of the company's assets upon dissolution unless all debts and bills of the company have been paid.

The majority of partners must decide to dissolve according to the articles of association or cooperation headings, and a liquidator must be appointed.

Registering the dissolution decision in the commercial register

After the partners decide to dissolve the company and the liquidator is identified, this decision must be approved by the registrar. Then, according to Article (305):

The managers or chairman of the board or liquidator must register the dissolution decision in the commercial register and relevant authorities.

The dissolution decision must be published in two local newspapers, one of which must be in Arabic.

Note that the dissolution decision can only be valid for third parties from the date of registration in the commercial register.

Closing the company's bank account

After registering the dissolution of the company in the commercial register and completing the legal steps, you can close the company's bank account.

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