We’ve received lots of queries regarding how to terminate a Freezone company in Dubai; what is the process of company termination in Dubai? Well, Terminating a Jebal Ali Free Zone Company (FZCO) in Dubai can be a complex process, requiring careful planning and adherence to legal requirements. Whether you’re closing your business due to strategic reasons or transitioning to a new venture, understanding the termination process is crucial. In this guide, we’ll walk you through the 9 major steps involved in terminating an FZCO company in JAFZA, Dubai.
9 Steps to Terminate a JAFZA Company
Step #1) Official Notification to the Freezone Authority:
In order to start termination process first you have to inform the concerned freezone where your company is situated so the freezone will issue you with a cancellation or de-registration form.
Step #2) Signed Resolution:
Shareholder (s) to sign the de-registration form for FZE / FZCO.
A signed Board or Shareholder Resolution where all partners agree to close the company is required. All authority and responsibilities of the Directors of the company will be terminated upon submission of the company termination request.
*Board Resolution from the parent company to close Jebel Ali branch should be (Notarized by Notary Public & Attested by UAE Embassy) for Branch Company.
**All the original documents with company stamp are required to submit in Freezone.
Step #3) Clear Outstanding Amounts:
As part of the optimized termination process, it is crucial to settle any outstanding amounts owed to the free zone authority. This includes payment of license fees, fines, penalties, or any other financial obligations that may exist. By clearing these outstanding amounts, you fulfill your financial responsibilities and ensure a smooth and compliant termination.
Step #4) NOC’s and Clearance:
It’s crucial to obtain clearance from additional authorities such as the Roads and Transport Authority (RTA) and Customs. These clearances play a vital role in ensuring a smooth and compliant termination process.
- RTA Clearance:
As part of the termination process, it is necessary to obtain clearance from the RTA. This clearance confirms that all transportation-related obligations, such as outstanding fines or fees, have been settled. Contact the RTA and follow their guidelines to initiate the clearance process effectively.
- Customs Clearance:
Clearance from Customs is another essential requirement when terminating an FZCO company in JAFZA. This clearance ensures that all customs-related obligations, including duties, taxes, and any pending matters, have been appropriately addressed. Cooperate with the Customs department to facilitate a smooth and efficient clearance process.
Step #5) Visa Cancellation of Employees:
All visas and work permits ‘CIC’ for employees and dependents under the company name must be cancelled. Please note that under the provisions of the UAE Labour Law, it is mandatory for companies to provide employees with a two-month paid notice period in the event of company closure prior to terminating their contracts.
*(License Holder’s visa & CIC will be cancelled at a later stage)
Step #6) DEWA Bill:
You should provide the final bill from DEWA with receipt of payment for Plot and Warehouse unit(s).
Step #7) Liquidation Report and Bank Account Closure:
- Liquidation Report:
A crucial requirement for terminating an FZE or FZCO company is the preparation and submission of a Liquidation Report. This report outlines the company’s financial position, assets, liabilities, and the proposed distribution plan for winding up the company’s affairs. The Liquidation Report provides a comprehensive overview of the company’s financial status and is essential for the termination process.
- Liquidator’s Valid License:
To carry out the liquidation process effectively, it is imperative to engage a qualified Liquidator who possesses a valid license recognized by JAFZA. The Liquidator’s license ensures that they have the necessary expertise and authority to oversee the liquidation proceedings, safeguarding the interests of the stakeholders involved.
- Bank Closure Letter:
In the termination process for FZE and FZCO companies, it is necessary to obtain a Bank closure letter from the company’s respective bank. This letter confirms the closure of the company’s bank account(s) and ensures the appropriate financial disbursement and settlement of any remaining balances or obligations.
Step #8) Pay the Fees:
- De-registration fees 6,500 AED for FZE / FZCO and 1,500 AED for Branch (to be deducted from portal account).
- If the License is expired, late fee 1,000 AED per month as fine will be charged (to be deducted from portal
Step #9) Lease Termination & Keys Handover:
After receiving approval for the termination of your lease agreement from the Landlord and Leasing (L&L) department, the next step in the FZE and FZCO termination process in JAFZA, Dubai, is to book an appointment online with EOL (End of Lease).
Why Should You Choose Decision Management Consultants?
Decision Management Consultants (DMC) is dedicated to assisting businesses with various aspects of company termination, including FZCO companies in Dubai. Our expertise and experience in the field enable us to provide comprehensive support throughout the termination process, ensuring a smooth and efficient conclusion to your FZCO company’s operations.
- Consultation and Advisory Services: We offer personalized consultation and advisory services tailored to your specific needs. Our experienced consultants will assess your situation, understand the unique circumstances of your FZCO company termination, and provide strategic guidance. We can assist you in navigating the complex procedures, ensuring that all necessary steps are taken in the correct order and within the specified timelines.
- Documentation and Process Management: Terminating an FZCO company involves substantial documentation and adherence to specific processes. DMC assists in preparing the required forms, letters, and reports necessary for the termination process. We ensure that all documentation is accurate, complete, and in line with the legal requirements, saving you valuable time and effort.
- Coordination with Authorities: DMC acts as a liaison between your FZCO company and the relevant authorities involved in the termination process. We communicate with JAFZA, the Landlord and Leasing department, RTA, Customs, and other entities as necessary to ensure a streamlined process. Our goal is to facilitate efficient communication and maintain compliance with all regulatory requirements.
- Timely and Efficient Completion: With DMC’s support, you can expect a timely and efficient completion of your FZCO company termination. We work diligently to minimize delays and complications, ensuring that all necessary steps are completed within the specified timeframes. Our aim is to make the termination process as smooth as possible, allowing you to focus on other aspects of your business transition.
By engaging Decision Management Consultants for your JAFZA company termination in Dubai, you benefit from our expertise, personalized guidance, and efficient management of the termination process. We strive to provide comprehensive support, ensuring compliance with regulations and helping you navigate the complexities of terminating your JAFZA company in Dubai.
Let us allow to assist you by doing what we do best so that you can return to doing what you enjoy and focusing on growing your business. Please contact our team to see how we can assist you.