Company in Sharjah Publishing City Free Zone

Company liquidation in SPC Free Zone is the legal process of winding up a business, ensuring all assets, liabilities, and obligations are settled before the company is officially deregistered.

Through liquidation, you:

Ensure all debts and employee dues are paid.
Cancel the trade license and remove the company from the SPC registry.
Comply with federal laws, including VAT deregistration and UBO record submission.

Note:
A full liquidation is required if your business has employees, assets, or outstanding contracts.
If your entity is dormant and debt-free, SPC may allow strike-off (simplified deregistration) instead.

Overview Closing a Company in Sharjah Publishing City Free Zone

Liquidating a company in Sharjah Publishing City (SPC) Free Zone involves formally closing operations, clearing financial and legal obligations, and cancelling the trade license under the SPC Authority.

The process ensures compliance with UAE regulations, protects shareholder interests, and prevents future penalties or liabilities.

To close a company in the SPC Free Zone, you must:

Pass a board resolution to liquidate the business.
Cancel all visas and labour cards for employees and shareholders.
Settle outstanding payments to banks, landlords, and government departments.
Obtain clearances from authorities such as SEWA, FTA, and Immigration.

Submit the required documentation to the SPC Authority and receive a Liquidation Certificate confirming official closure.

Types of Company Liquidation in Sharjah Publishing City (SPC) Free Zone

Liquidation in the Sharjah Publishing City (SPC) Free Zone can be categorized into two main types depending on how and why the company is being closed:

Voluntary Liquidation:

Definition:
Voluntary liquidation occurs when the shareholders or owners of the company decide to close the business on their own, usually because it has fulfilled its objectives, is no longer profitable, or the owners wish to exit the market.

Key Features:

Initiated by the shareholders or directors.
A board resolution is passed to formally liquidate the company.
The company settles all debts and clears obligations with the SPC Authority and external entities.
A liquidator may be appointed to prepare the liquidation report.
Once all clearances are obtained, SPC issues a Liquidation Certificate confirming the company’s closure.

Common Reasons for Voluntary Liquidation:

Business is no longer profitable.
Expiry of business license or project term.
Completion of business objectives.
Strategic restructuring or merger.
Exit from the UAE market.

Compulsory (Involuntary) Liquidation:

Definition:
Compulsory liquidation, also known as forced liquidation, happens when a government authority or court orders the company to be wound up.

This usually occurs when the company is unable to pay its debts or has violated UAE company laws or free zone regulations.

Key Features:

Initiated by the SPC Authority, court, or creditors.
A liquidator is mandatorily appointed to sell the company’s assets and pay off debts.
Remaining funds (if any) are distributed among shareholders after all liabilities are cleared.
The company name is then struck off from the SPC registry.

Common Reasons for Compulsory Liquidation:

Insolvency or bankruptcy (inability to pay creditors).
Violation of UAE Free Zone or federal laws.
Fraudulent activity or non-compliance with financial reporting.
Long-term inactivity or expired license with unpaid dues.

Summary Strike-Off (Simplified Deregistration):

(Applicable to dormant or inactive companies)

Definition:
A simplified deregistration or “strike-off” is available for small or inactive companies with no employees, debts, or pending obligations.

It’s a fast-track closure process that does not require a formal liquidator.

Key Features:

Used for dormant companies that never traded or ceased operations early.
Minimal documentation and clearances required.
SPC Authority reviews and approves deregistration without full liquidation procedure.
Less costly and completed within 2–4 weeks.

Step-by-Step Process of Company Liquidation in SPC Free Zone

Board Resolution

Shareholders must pass and notarize a resolution stating the intent to liquidate the company and, if applicable, appointing a licensed liquidator.

This document should include:

The reason for closure.
The name of the appointed liquidator (if required).
Authorization to proceed with deregistration.

Appointment of a Liquidator (If Required)

SPC may not always require a licensed liquidator, especially for small entities.
However, for LLCs or companies with complex structures, the appointment of an auditor or registered liquidator is mandatory. The liquidator provides an acceptance letter confirming their role.

Visa and Labour Card Cancellation

All employee and investor visas, along with the company establishment card, must be cancelled via:

The Ministry of Human Resources & Emiratisation (MOHRE)
The General Directorate of Residency & Foreigners Affairs (GDRFA)

Clearance & Settlement of Liabilities

You must settle and obtain No Objection Certificates (NOCs) from all relevant departments:

Sharjah Electricity, Water & Gas Authority (SEWA) – Utility clearance
Federal Tax Authority (FTA) – VAT deregistration within 20 days
Bank – Confirmation of account closure
Landlord / Leasing Department – Termination of tenancy
Telecom Providers (Etisalat / Du) – Cancellation of lines
Sharjah Customs – For trading or import/export activities

Newspaper Advertisement (If Applicable)

In some cases, SPC may require publishing a liquidation notice in both Arabic and English newspapers, giving creditors 45 days to raise any claims.

Submission of Final Liquidation Documents

Once all clearances are secured, submit the following to the SPC Authority:

Liquidation application form
Original trade license
Shareholder resolution and liquidator acceptance letter
Clearance letters and NOCs
Final liquidation report from the liquidator
Bank closure letter

Final Deregistration & Liquidation Certificate

Upon reviewing and approving all documentation, the SPC Free Zone Authority issues a License Cancellation Certificate, officially closing the company.

Key Departments & Stakeholders Involved

Department	Role in Liquidation
Sharjah Publishing City (SPC) Free Zone Authority	Primary authority overseeing deregistration and final approval
Ministry of Human Resources & Emiratisation (MOHRE)	Labour card and employee clearance
General Directorate of Residency & Foreigners Affairs (GDRFA – Sharjah)	Visa cancellations for employees and investors
Federal Tax Authority (FTA)	VAT deregistration and tax clearance
Sharjah Electricity, Water & Gas Authority (SEWA)	Utility clearance and settlement
Sharjah Municipality / Leasing Department	Tenancy contract termination and clearance
Telecom Providers (Etisalat / Du)	Service cancellation and NOC issuance
Commercial Banks	Bank account closure and clearance letter
Sharjah Customs (if applicable)	Customs clearance for trading firms

Application for deregistration
Notarized board resolution for liquidation
Liquidator’s appointment and acceptance letter (if required)
Company’s trade license and incorporation documents
Passport and Emirates ID copies of shareholders
Clearance certificates (SEWA, bank, FTA, landlord, etc.)
Final liquidation report
VAT deregistration confirmation

Common Challenges During SPC Company Liquidation

Incomplete visa or labour cancellations delaying final approval.
Outstanding SEWA or FTA liabilities causing penalties.
Failure to deregister VAT within 20 days of cessation.
Late document submission, resulting in fines.
Unreturned original documents (license, lease, etc.) slowing clearance.

Professional guidance ensures your liquidation proceeds smoothly without penalties.

The entire process typically takes 30–60 days, depending on company structure, number of employees, and clearance speed.

Estimated Cost:

The total liquidation cost generally ranges between AED 3,000 and AED 10,000, including:

Government deregistration fees (SPC): AED 1,000 – 2,000
Visa cancellations: AED 200 – 500 per visa
Utility and landlord clearances: AED 500 – 1,500
VAT deregistration (if applicable): Free (penalties for delays up to AED 10,000)
Liquidator fees (if required): AED 3,000 – 7,000

Note: Costs are approximate and may vary depending on company structure, activity, and pending dues.

The Capital Zone Liquidators

Why Choose Our Services?

At The Capital Zone, we specialize in SPC Free Zone company liquidation. Our team handles everything from board resolutions to final clearances, saving you time and ensuring full compliance.

Fast processing with SPC Authority
Assistance in document preparation & NOCs
VAT deregistration & visa cancellation support
Transparent cost estimates

Contact us today to close your Sharjah Publishing City Free Zone company efficiently and avoid penalties.

Frequently
Asked Questions

How long does it take to liquidate a company in SPC Free Zone?

Usually 30 to 60 days, depending on visa cancellations and clearance approvals.

Do I need to appoint a liquidator?

Not always. For small companies, SPC may not require a liquidator. For LLCs or entities with liabilities, it is mandatory.

What happens if I don’t deregister VAT on time?

You can face penalties of AED 10,000 for failure to deregister within 20 business days.

Can I liquidate my company while abroad?

Yes, through a power of attorney, allowing a representative or consultant to handle the process.

Do I need to publish a liquidation notice?

It depends on the SPC Authority’s assessment. Larger firms or those with creditors are typically required to publish one.