License Winding Up

License winding up in the UAE refers to the process of closing a business entity and cancelling its trade license.  This can happen for a variety of reasons, such as the business being insolvent, the owners deciding to move on to other ventures, or changes in the market or regulatory environment.

The process of winding up a license in the UAE typically involves several steps, including notifying relevant authorities, settling any outstanding debts or obligations, liquidating assets, visa cancellations and deregistering the business with the appropriate government agencies. It is important to follow the legal requirements and procedures for winding up a license to avoid any potential legal issues or liabilities.

The following are the four modes of winding-up so far applicable for companies in most of the jurisdictions of the United Arab Emirates:

 • Summary winding-up:  A mode of winding-up of a company wherein the Director(s) declare(s) that the affairs of the Company are capable of being finally wound-up within six (6) months from the commencement of the winding-up process. 

• Solvent winding-up:  A mode of winding-up of a company wherein the Director(s) declare(s) that the affairs of the Company are capable of being finally wound-up within twelve (12) months of the commencement of the winding-up process. 

• Insolvent voluntary winding-up:  A mode of winding-up of a company wherein there is participation of the creditors of the company. 

• Involuntary winding-up by the competent Court:  A mode of winding-up of a company wherein the Registrar of the economic Zone submits a petition to the Court for the winding-up of the Company after he determines that:  the Company has been struck-off; or the Company has committed a serious or repeated contravention of the UAE Company (ies) LAWs & Regulations or any other regulation, rule, policy or decision applicable in the UAE.