Company Liquidation in Ras Al Khaimah
What is

Company Liquidation in Ras Al Khaimah

Company liquidation in Ras Al Khaimah is the formal process of closing down a business and legally removing it from the RAK DED’s commercial registry.

As defined under Federal Decree-Law No. 32 of 2021 on Commercial Companies, the process involves:

  • Selling company assets
  • Settling debts and outstanding liabilities
  • Distributing any remaining funds among shareholders and creditors
  • Officially cancelling the trade license

Proper liquidation ensures your company has no further legal or financial responsibilities in the UAE and maintains your compliance record for future ventures.

Understanding the Types of Company Liquidation in Ras Al Khaimah

There are two main types of company liquidation in RAK Mainland:

Voluntary Liquidation

Initiated by shareholders when they decide to close the company for strategic or financial reasons. A licensed liquidator is appointed to manage the process, including selling assets, settling debts, and submitting the final liquidation report to the RAK DED.

Compulsory Liquidation

Enforced by a court order when the company cannot meet its financial obligations. Creditors or authorities can request the court to appoint a liquidator who will handle the liquidation and distribute proceeds to creditors as per the UAE Commercial Companies Law.

Company Liquidation vs. Deregistration

It’s important to distinguish between liquidation and deregistration:

  • Liquidation applies to active or previously operational companies with existing assets, employees, or liabilities. It’s a detailed, multi-step process involving audits and clearances.

Deregistration (Striking Off) applies to dormant companies with no financial obligations. It’s simpler and less costly but reversible unlike liquidation, which permanently dissolves the entity.

The Company Liquidation Process in Ras Al Khaimah Mainland

Liquidating a company in RAK Mainland involves several key phases managed by the Ras Al Khaimah Department of Economic Development (RAK DED).

 

Phase 1: Resolution and Appointment of a Liquidator

    • Shareholder Resolution: The shareholders must pass and notarize a resolution confirming the decision to liquidate and appoint a licensed liquidator.
    • Appoint a Licensed Liquidator: The liquidator issues an official acceptance letter confirming their appointment.
    • Submit to RAK DED: The company submits the liquidation request with all supporting documents — trade license, MoA, shareholder IDs, and liquidator’s letter — to obtain the Initial Liquidation Certificate.

 

Phase 2: Public Notice and Settlements

    • Newspaper Publication: A liquidation notice must be published in two local Arabic newspapers for 45 days, allowing creditors to raise any claims.
    • Visa and Labor Cancellations: All employee, investor, and partner visas must be cancelled through the Immigration Department and Ministry of Human Resources & Emiratisation (MOHRE).
    • Obtain Clearances: Secure NOCs from the following:
      • Federal Tax Authority (FTA) – for VAT/corporate tax deregistration
      • Utilities (FEWA) – electricity and water clearance
      • Telecom Providers – Etisalat or du
      • Landlord/Municipality – tenancy clearance
      • Bank – confirmation of account closure

 

Phase 3: Final Report and Deregistration

    • Final Liquidation Report: The liquidator prepares and submits the Statement of Affairs, confirming all liabilities are cleared.
    • Final Submission to RAK DED: Attach the newspaper proof, clearance certificates, and final report.
    • License Cancellation Certificate: After review and final fee payment, the RAK DED issues the official License Cancellation Certificate, formally dissolving the company.

Key Departments & Stakeholders Involved in Company Liquidation – Ras Al Khaimah Mainland

The company liquidation process in Ras Al Khaimah Mainland involves coordination with several government departments and regulatory authorities to ensure all legal, tax, and administrative obligations are properly settled before deregistration.

Primary Authorities Involved:

  • Ras Al Khaimah Department of Economic Development (RAK DED):
     The main authority responsible for approving the liquidation process, reviewing the liquidator’s report, and issuing the final License Cancellation Certificate.
  • Ministry of Human Resources and Emiratisation (MOHRE):
     Handles the cancellation of employee labour cards, end-of-service settlements, and closure of the company’s labour file.
  • General Directorate of Residency and Foreigners Affairs – Ras Al Khaimah (GDRFA):
     Responsible for cancelling all residence and employment visas of shareholders, partners, and employees.
  • Federal Tax Authority (FTA):
     Oversees VAT and corporate tax deregistration and issues clearance confirming that the company has no pending tax obligations.
  • Ras Al Khaimah Municipality:
     Issues clearances related to commercial permits, tenancy, and municipal fees.
  • Ras Al Khaimah Electricity and Water Authority (RAK EWA):
     Provides final settlement and clearance of all utility bills and deposits.
  • Telecommunication Providers (Etisalat / Du):
     Manage termination and clearance of corporate phone and internet connections.
  • Banks:
     Require closure of all business bank accounts and provide final clearance certificates confirming no liabilities.
  • Landlord / Property Owner:
     Provides a No Objection Certificate (NOC) confirming that rent payments and tenancy obligations are fully settled.

These departments work in coordination to ensure the liquidation is completed smoothly and that no financial or regulatory obligations remain unresolved before the company’s deregistration.

Documents Required for Company Liquidation in Ras Al Khaimah Mainland

To ensure a smooth process, prepare the following documents:

  • Valid Trade License (original & copy)
  • Memorandum of Association (MoA) with all amendments
  • Notarized Shareholder Resolution to liquidate the company
  • Liquidator’s Appointment Letter and acceptance
  • Copies of Shareholders’ Passports and Emirates IDs
  • Proof of Newspaper Publication (45-day notice)
  • Clearance Certificates (NOCs) from:

    • Federal Tax Authority (FTA)
    • MOHRE & Immigration
    • Utilities and Telecom Providers
    • Bank
    • Landlord/Municipality

  • Final Liquidation Report prepared by the liquidator

The Significance of Proper Liquidation & Role of Liquidators

Proper liquidation ensures:

  • Compliance with RAK DED and FTA regulations
  • Full settlement of debts, taxes, and employee entitlements
  • A clean business record for future ventures

A licensed liquidator plays a vital role in this process by:

  • Auditing and verifying all financial accounts
  • Managing the sale of assets and debt settlements
  • Coordinating with creditors and preparing the Final Liquidation Report

At The Capital Zone, we work with trusted, certified liquidators in Ras Al Khaimah to ensure your business closure is handled legally, transparently, and efficiently, avoiding delays or penalties.

Common Challenges in Ras Al Khaimah Company Liquidation

Businesses often face hurdles during liquidation, such as:

  • Incomplete Financial Records: Missing invoices or inconsistent accounting can delay the audit.
  • Unsettled Debts or Taxes: Pending FTA or supplier payments may block final clearance.
  • Visa Cancellations: Unclosed employee records or unpaid gratuities can lead to penalties.
  • Mainland vs. Free Zone Confusion: RAK DED and RAKEZ follow different liquidation rules — mixing them can cause rejection or delay.

The Capital Zone helps clients avoid these challenges by managing all documentation, clearances, and timelines accurately.

Timeline and Cost of Company Liquidation in Ras Al Khaimah Mainland

  • Estimated Duration: 45–90 days
    • 5–10 working days for initial approvals
    • 45 days for the public notice period
    • 10–20 working days for final reporting and deregistration
  • Estimated Cost: AED 8,000–20,000, depending on business type and complexity
    • RAK DED license cancellation fees: AED 2,000–4,000
    • Liquidator fees: AED 5,000–10,000
    • Newspaper publication: AED 1,000–2,000
    • Clearance & notary fees: AED 1,000–3,000

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 simplify and expedite company liquidation in Ras Al Khaimah Mainland. Our expert team handles the entire process from drafting resolutions and coordinating with liquidators to managing government submissions and clearances.

With transparent pricing, licensed partners, and dedicated support, we ensure your business closure is completed on time, fully compliant, and penalty-free.

Get in touch with The Capital Zone today for reliable and professional company liquidation assistance in Ras Al Khaimah Mainland.

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Frequently
Asked Questions

It’s the official legal process of closing a business and removing it from the RAK DED’s commercial registry. It ensures all assets, liabilities, and taxes are settled before deregistration.

Typically 45–90 days, depending on how quickly all clearances and audits are completed.

You’ll need the trade license, MoA, notarized shareholder resolution, liquidator appointment letter, newspaper notice proof, and NOCs from FTA, MOHRE, utilities, and banks.

The total cost usually ranges from AED 8,000 to AED 20,000 depending on company size and complexity.

Yes, appointing a certified liquidator is mandatory for all LLCs and recommended for other company types to ensure compliance and accurate reporting.

Failure to formally liquidate can lead to heavy fines, legal action, or blacklisting by the RAK DED and FTA.

The Capital Zone Liquidators

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