Latest requirements to wind up a Sharjah Media City Company

Companies operating in Sharjah Media City (SHAMS) can be shut down peacefully through the voluntary liquidation process. Labeled as the best exit strategy available, voluntary company liquidation in SHAMS allows the business owners to close their business by fulfilling the interests of all the stakeholders involved including the employees. Voluntary liquidation also saves entrepreneurs from resorting to drastic measures such as absconding from the company, which may have legal repercussions. By appointing the best company liquidators in Sharjah, you can wind up a SHAMS-licensed company legally, without any complications.

The process will be easier if you learn about certain basic steps and requirements related to company liquidation in the UAE. Having a clear understanding of the liquidation procedure has become more relevant, especially after the introduction of compliance requirements such as Value Added Tax (VAT), Ultimate Beneficial Ownership (UBO), and Economic Substance Regulations (ESR). Read ahead to get a clear picture of the latest steps & requirements to wind up a SHAMS Free Zone Company:

Passage of Board Resolution

The process of company liquidation in SHAMS can be started by passing a board resolution. The resolution must be signed by all the shareholders or directors of the company. It should also state the reason for the winding up of the company.

Appointment of a Liquidator

An official liquidator must be appointed to carry out the entire procedure of liquidation. The official liquidator can be any audit firm licensed to carry out its operations in the UAE. The process will be more straightforward if you hire company liquidators in Sharjah who have vast experience and expertise in winding up companies.

Letter of Acceptance from the Liquidator

In the next step, the liquidator should notify the free zone authority about his willingness to take charge. Once the liquidator assumes his responsibility, the powers of all the shareholders or directors will cease.

Cancellation of Visa, Establishment Card

All the visas under the company must be canceled before the liquidation process starts. This also includes employee visas. You must also ensure that the company’s establishment card is canceled.

Bank Account Closure

If you have a corporate bank account in the UAE, it must be canceled before shutting down the company. You need to obtain a bank account closure letter from the relevant bank as well.

Return of Original Documents

You must have received a set of documents at the time of company incorporation in SHAMS. All the original documents must be returned to the free zone authority before winding up the company. The original documents include Trade License, Tenancy Contract, Memorandum & Articles of Association, Investment Service Agreement, Share Certificate, Certificate of Incorporation etc.

Obtain Clearances from Authorities

You must obtain No Objection Certificates or clearance letters from the authorities and service providers listed below:

• Sharjah Customs
• SEWA
• Etisalat/Du
• Emirates Post (if the company has a PO Box)

Return Keys to the Free Zone Authority

If you have rented or leased out any office space or facility within the SHAMS, you are required to return the keys to the free zone authority. A clearance letter from the relevant department must be obtained in this regard.

Settle Outstanding Payments

If any amount is due, you must settle it with the finance or accounting department of the free zone for the smooth completion of company liquidation in SHAMS.

Publish a Newspaper Advertisement

An advertisement must be published in both Arabic and English newspapers to notify the public about the company’s liquidation. Interested parties can make a claim during the 15-days lock-in period from the date of publication. The SHAMS Authority will not entertain any claim made after the expiry of the grace period.

Apply for VAT Deregistration

Most business owners fail to apply for VAT deregistration while liquidating a company in the UAE. As per the UAE VAT Law, a VAT-registered company under liquidation is required to apply for VAT deregistration within 20 days of becoming eligible for deregistration. You will incur a penalty of AED 10,000 for violating this critical rule. Company liquidators in Sharjah advise VAT-registered entities to meet this critical requirement to avoid costly delays and penalties.

Comply with ESR Requirements

Companies under liquidation in SHAMS are advised to check their ESR liabilities before proceeding with the process. If your company has conducted any of the nine relevant activities, you must meet ESR requirements such as filing ESR Notification, submitting ESR Report and meeting Economic Substance Test. Failure to meet the requirements will leave you with the burden of hefty penalties.

Meet UBO Requirements

Companies undergoing liquidation in SHAMS must hand over their Real Beneficiary Register (RBR) and Partners or Shareholders Register (PSR) to the Free Zone Authority within 30 days of appointing the liquidator. The liquidator or administrator must maintain these registers for not less than five years from the date of liquidation. Company liquidators in Sharjah suggest ensuring UBO compliance to avoid hefty penalties.

Submission of Liquidation Report

The process of winding up a company in SHAMS Free Zone will conclude only when the liquidator submits his final liquidation report. Once the liquidation report is submitted, the Registrar will strike off the company’s name from the Register along with cancelling its trade license.

Hire the Best Company Liquidators in Sharjah, UAE

The best company liquidators in Sharjah such as Jitendra Business Consultants (JBC) can help you to wind up a company without any hassle. By availing of our bespoke company liquidation services in Sharjah, you can meet all the key requirements and steps including ESR, VAT, and the UBO. We have a team of professionals who can ensure that your company is shut down in compliance with existing laws and regulations.

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