Liquidation Glossary

Company Termination | Jebel Ali Free Zone (JAFZA)

The official process of closing and deregistering a company in JAFZA. This involves settling all outstanding debts, liquidating assets, canceling licenses, and obtaining final clearance from JAFZA authorities, legally ending the company’s operations in the Free Zone.

Company Termination (Offshore Company) | JAFZA

The formal process of closing a JAFZA-registered offshore company. This includes settling liabilities, liquidating assets if any, canceling the company registration, and obtaining official approval from JAFZA authorities, officially ending the company’s legal existence.

Dubai Trade Portal | JAFZA Portal

An online platform provided by Jebel Ali Free Zone (JAFZA) and Dubai Trade for businesses to manage trade and corporate services. It allows companies to apply for licenses, submit documents, track approvals, and access various Free Zone services digitally.

Liquidator

A licensed professional appointed to manage the liquidation of a company in the UAE. The liquidator is responsible for settling debts, selling or distributing assets, filing necessary documents with the relevant Free Zone or government authorities, and ensuring the company is legally closed in compliance with UAE regulations.

Lease Termination

The formal process of ending a commercial or office lease agreement in the UAE, often required during company liquidation or closure. This involves settling outstanding rent, returning the leased property to the landlord, and obtaining official no-objection or clearance certificates from the relevant authorities.

Outstanding Dues

Any unpaid financial obligations or liabilities of a company, such as rent, loans, utility bills, taxes, or payments to creditors, that must be settled before completing the liquidation or closure process.

Roads and Transport Authority (RTA) Clearance

An official certificate issued by Dubai’s Roads and Transport Authority (RTA) confirming that a company has no outstanding obligations related to vehicle registration, transportation permits, or fines. This clearance is often required during business liquidation or license cancellation in the UAE.

Customs Clearance

An official approval from UAE Customs confirming that a company has settled all customs duties, taxes, and import/export obligations. This clearance is often required during business liquidation, license cancellation, or transfer of assets to ensure compliance with UAE trade regulations.

DEWA Final Bill

The final settlement invoice issued by the Dubai Electricity and Water Authority (DEWA) to a company or individual. It reflects all outstanding electricity and water charges and must be cleared before company liquidation, office closure, or handover of leased premises in Dubai.

Etisalat Clearance

An official confirmation from Etisalat, the UAE’s telecommunications provider, that a company has settled all outstanding bills for phone, internet, or other telecom services. This clearance is required during company liquidation or office closure to ensure all obligations are fully paid.

Certificate of Formation

An official document issued by UAE authorities (or a Free Zone) confirming the legal incorporation or registration of a company. It typically includes the company’s name, registration number, date of formation, and type of business, serving as proof of the company’s legal existence.

Liquidation Report

A formal document prepared by the company’s liquidator detailing the entire liquidation process. It typically includes the company’s assets, liabilities, creditor settlements, distribution of remaining funds, and confirmation that all legal and regulatory requirements have been completed, serving as proof of the company’s closure.

Resolution from the Mother Company (Notarised and Attested)

A formal written approval issued by the parent company authorizing actions such as the liquidation, closure, or asset transfer of its subsidiary. The resolution must be notarised by a public notary and attested by the relevant UAE authorities to be legally valid and recognized for regulatory or Free Zone requirements.

Appointment of Liquidator | FZCO

The formal process of officially assigning a licensed liquidator to manage the winding-up of a Free Zone Company (FZCO) in the UAE. The liquidator is responsible for settling debts, selling or distributing assets, completing regulatory filings, and ensuring the company is legally dissolved in compliance with the relevant Free Zone authority.

Appointment of Liquidator | FZE

The official process of designating a licensed liquidator to manage the closure of a Free Zone Establishment (FZE) in the UAE. The liquidator handles settling debts, liquidating assets, filing necessary documents with the Free Zone authority, and ensuring the company is legally dissolved in accordance with UAE regulations.

Appointment of Liquidator | PLC

The formal process of assigning a licensed liquidator to oversee the winding-up of a Public Limited Company (PLC) in the UAE. The liquidator is responsible for settling the company’s debts, distributing remaining assets, completing regulatory filings, and ensuring the company is legally dissolved according to UAE corporate laws.

Resolution Regarding the Appointment of Liquidator

A formal decision passed by a company’s shareholders or board of directors authorizing the appointment of a licensed liquidator. This resolution provides legal approval for the liquidator to manage the company’s winding-up, including settling debts, liquidating assets, and completing regulatory filings in compliance with UAE laws and Free Zone requirements.

DMCC Liquidation

The formal process of closing a company registered in the Dubai Multi Commodities Centre (DMCC). This process involves settling all outstanding debts, liquidating assets, canceling the business license, and obtaining final approval from DMCC authorities, legally ending the company’s operations in the Free Zone.

DMCC Portal

The official online platform provided by the Dubai Multi Commodities Centre (DMCC) for managing company-related services. Through the portal, businesses can apply for licenses, submit documents, track approvals, process company terminations, and access other regulatory and administrative services digitally.

DMCC License Termination

The official process of canceling a company’s trade license in the Dubai Multi Commodities Centre (DMCC). This process involves settling all outstanding debts, returning leased premises if applicable, submitting required documents via the DMCC Portal, and obtaining final approval from DMCC authorities to legally close the company.

DMCC Deregistration

The official process of removing a company from the Dubai Multi Commodities Centre (DMCC) registry. Deregistration is usually part of company liquidation or closure and involves settling all liabilities, canceling the trade license, submitting required documents via the DMCC Portal, and obtaining final approval from DMCC authorities to legally end the company’s existence.

Certificate of Incumbency of the Parent Company

An official document issued by the parent company confirming the identities of its current directors, officers, and authorized signatories. This certificate is often required during the liquidation or closure of a subsidiary to verify that the parent company has authorized the necessary actions, such as appointing a liquidator or approving asset transfers, and must be notarised and attested as per UAE requirements.

Confirmation of Appointment from Liquidator

A formal document issued by the appointed liquidator confirming their acceptance of the role and responsibility to manage the company’s liquidation. It serves as official proof that the liquidator is authorized to settle debts, liquidate assets, file necessary documents, and ensure the company is legally dissolved in compliance with UAE laws and Free Zone regulations.

Personnel Secondment Agreement

A formal contract between two companies outlining the temporary transfer of an employee from one company (the seconding company) to another (the host company). The agreement defines the terms of employment, responsibilities, duration, and reporting structure, and is often used during corporate restructuring, project assignments, or business closure processes to manage staff obligations legally.

Establishment Card

An official card issued by the UAE Ministry of Human Resources and Emiratisation (MOHRE) to a company, serving as proof of the company’s legal existence and its authorization to employ staff in the UAE. It contains key company information and is often required for employee visas, labor transactions, and regulatory processes, including company liquidation or closure.

NOC from Customs

A No Objection Certificate (NOC) issued by UAE Customs confirming that a company has no pending customs duties, fines, or import/export obligations. This certificate is often required during company liquidation, license cancellation, or transfer of assets to ensure full compliance with UAE trade regulations.

Clearance Letter from the Landlord

An official document issued by a company’s landlord confirming that all obligations related to leased premises—such as rent, utilities, and property condition—have been fulfilled. This letter is often required during company liquidation or office closure to obtain final approvals from Free Zone or government authorities.

Liquidator and Closed Audit Report

A Closed Audit Report is a financial statement prepared during the liquidation process, certifying that the company’s accounts have been audited and all liabilities, assets, and transactions have been accurately settled. This report is typically prepared or verified by the appointed liquidator, who oversees the company’s winding-up and ensures compliance with UAE legal and Free Zone requirements.

License Termination Letter

An official document issued by a Free Zone authority or government department confirming the cancellation of a company’s trade or business license. This letter is required during company closure or liquidation to verify that the company is no longer authorized to operate and that all regulatory obligations have been fulfilled.

De-Registration Letter

An official document issued by a Free Zone authority or government department confirming that a company has been formally removed from the business registry. This letter is typically issued after all liquidation requirements, debt settlements, and license cancellations are completed, legally ending the company’s existence.

Flexi-Desk

A flexible office solution offered by UAE Free Zones that provides companies with a business address and shared office facilities without the need for a full physical office. Flexi-Desk setups are often used by startups or small businesses and may require special clearance during company liquidation or license cancellation.

DMCC Member Portal

The official online platform provided by the Dubai Multi Commodities Centre (DMCC) for registered companies. Through the portal, members can manage company services such as license renewals, document submissions, payments, company termination, and other administrative tasks digitally.

DDA Liquidation

The formal process of closing a company registered under the Dubai Development Authority (DDA). This process involves settling all outstanding debts, liquidating assets, canceling the company license, and obtaining final approval from DDA authorities, thereby legally ending the company’s operations in the Free Zone.

Certificate of De-Registration

An official document issued by a UAE Free Zone or government authority confirming that a company has been formally removed from the business registry. It serves as proof that the company has completed all liquidation or closure procedures, settled its liabilities, and is no longer legally recognized to conduct business.

Newspaper Advertisements (English & Arabic)

Public notices published in UAE newspapers, in both English and Arabic, to announce important company actions such as liquidation, closure, or debt settlements. These advertisements are often required by UAE law or Free Zone regulations to inform creditors and the public before completing the company’s winding-up process.

Members’ Resolution

A formal decision passed by the members or shareholders of a company approving specific actions, such as the appointment of a liquidator, company liquidation, or other corporate decisions. The resolution serves as legal authorization to proceed with these actions and is often required by UAE Free Zones or regulatory authorities during the winding-up process.

DDA AXS Portal

The official online platform provided by the Dubai Development Authority (DDA) for companies registered in the DDA Free Zone (Dubai Design District (d3), Dubai Production City (DPC), Dubai Studio City (DSC), Dubai Knowledge Park (DKP), Dubai International Academic City (DIAC), Dubai Science Park (DSP), Dubai Media City (DMC)). Through this portal, businesses can manage services such as license renewals, document submissions, payments, company termination, and other administrative tasks digitally, including processes related to liquidation.

Deregistration (FZ-LLC)

The official process of removing a Free Zone Limited Liability Company (FZ-LLC) from the UAE Free Zone registry. This process is part of company closure or liquidation and involves settling all liabilities, canceling the trade license, and obtaining final approval from the relevant Free Zone authority.