Company Liquidation in Sharjah
What is

Company Liquidation in Sharjah Mainland

Company liquidation (also termed license cancellation & deregistration in Sharjah) refers to the structured legal process by which a business ceases operations, winds up assets, settles debts, and officially cancels its trade license. As per Federal Decree-Law No. 32 of 2021 on Commercial Companies, liquidation ensures that any remaining financial obligations are addressed before dissolution.

Unlike mere deregistration (striking off), liquidation is required when there remain assets, liabilities, creditors, or other commitments to settle. Once properly liquidated, the business is formally removed from SEDD’s register, protecting its owners from ongoing liability.

Types of Company Liquidation in Sharjah

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

Voluntary Liquidation

Initiated by shareholders when they decide to close operations (due to restructuring, non-profitability, or exit). A licensed liquidator oversees the process, ensuring proper settlement and final report submission.

Compulsory Liquidation

Ordered by a court or in response to creditor petitions in cases of insolvency. The court appoints a liquidator to take control, sell assets, settle claims, and dissolve the company in accordance with UAE corporate law.

When Is a Liquidator Required?

For LLCs and shareholding companies in Sharjah Mainland, appointing a licensed liquidator is mandatory. The liquidator must be a recognized auditing or accounting firm in the UAE, capable of:

  • Auditing the company’s accounts
  • Managing the sale or distribution of assets
  • Coordinating with creditors
  • Preparing the Final Liquidation Audit Report
  • Submitting the necessary declarations to SEDD

At The Capital Zone, we collaborate with certified liquidators in Sharjah to ensure full regulatory compliance and avoid common pitfalls.

Sharjah Company Liquidation Process: Step by Step

Phase 1 – Board / Shareholder Resolution & Liquidator Appointment:

    • Call a meeting and pass a formal resolution to liquidate.
    • Notarize the resolution at a UAE notary public (or embassy attestation when shareholders are abroad).
    • Appoint a licensed liquidator and secure their acceptance letter.
    • Submit these documents (resolution, MoA, trade license, shareholder IDs, liquidator letter) to SEDD to obtain the Initial Liquidation Approval.

Phase 2 – Public Notice & Creditor Claims:

    • Publish the liquidation notice in two local newspapers (Arabic & English) for 45 days, calling on creditors to file claims.
    • During this notice period, begin cancelling visas, labour cards, and collecting clearances.

Phase 3 – Government Clearances & Settlements:

Obtain No Objection Certificates (NOCs) and settle outstanding obligations from:

    • MOHRE – Cancel labour cards, settle end-of-service benefits
    • GDRFA / Immigration (Sharjah) – Cancel visas of employees, shareholders, dependents
    • FOOD / Municipality / Sharjah Municipality – Clear municipal dues, fines
    • SEWA (Sharjah Electricity & Water Authority) – Final utility bills & disconnection clearance
    • Telecom Providers (Etisalat / DU) – Final billing and cancellation
    • Landlord / Ejari – Terminate tenancy, obtain NOC
    • Banks – Close corporate accounts, provide closure letters
    • Federal Tax Authority (FTA) – File final VAT returns and deregister if the company was VAT-registered

Phase 4 – Final Liquidation Audit & Submission

    • The liquidator prepares the Final Liquidation Audit Report, confirming all liabilities, assets, and distributions.
    • Submit the audit report, newspaper proof, all NOCs, and a declaration that no objections remain to SEDD.
    • Pay any final government fees.
    • SEDD issues the License Cancellation & Deregistration Certificate, officially dissolving the company.

Key Departments & Stakeholders Involved in Company Liquidation Sharjah Mainland

Liquidating a company in Sharjah Mainland requires coordination with multiple government departments and service authorities to ensure all obligations are settled before the trade license is officially cancelled.

Here are the key entities involved:

  • Sharjah Economic Development Department (SEDD):
     The main authority overseeing the entire liquidation process, from initial approval to the final license cancellation certificate.
  • Ministry of Human Resources and Emiratisation (MOHRE):
     Responsible for cancelling employee labour cards, settling end-of-service benefits, and closing the company’s labour file.
  • General Directorate of Residency and Foreigners Affairs – Sharjah (GDRFA):
     Handles visa cancellations for shareholders, employees, and dependents.
  • Sharjah Municipality:
     Issues clearance for any outstanding municipal dues, trade permits, or advertising fines.
  • Sharjah Electricity, Water and Gas Authority (SEWA):
     Provides final settlement and clearance for utility accounts.
  • Federal Tax Authority (FTA):
     Manages VAT and corporate tax deregistration, and issues a clearance certificate confirming compliance.
  • Telecommunication Providers (Etisalat, Du):
     Require disconnection and clearance for any registered business lines or internet services.
  • Banks:
     Business accounts must be closed, with a final clearance or “no liability” letter issued by the bank.
  • Landlord / Property Owner:
     A tenancy No Objection Certificate (NOC) is needed to confirm that all rental dues are cleared.

Each department plays a vital role in ensuring the company’s financial, legal, and administrative obligations are fully settled before deregistration is approved.

Documents Required for Sharjah Mainland Liquidation

  • Valid Trade License (original + copy)
  • Memorandum of Association & amendments
  • Notarized Shareholders’ Resolution approving liquidation
  • Liquidator appointment letter + acceptance
  • Copy of shareholders’ passports & Emirates IDs
  • Proof of newspaper publication (45-day notice)
  • Clearance letters / NOCs from MOHRE, GDRFA, SEWA, Municipality, telecom, landlord, bank
  • Final Liquidation Audit Report (mandatory for LLCs)
  • Bank account closure confirmation
  • Power of Attorney (if applicable)

Common Challenges & How They Arise in Sharjah

  • Incomplete financial records (missing invoices, unbalanced ledgers) stall audits
  • Outstanding debts or unpaid VAT block tax clearance
  • Unpaid employee dues or unresolved visa cancellations lead to labour authority rejections
  • Utility & tenancy disputes can delay NOC issuance
  • Confusion with Free Zone rules — companies wrongly follow free zone procedures instead of SEDD’s

With The Capital Zone, we anticipate and address these issues in advance, minimizing delays and ensuring clean closure.

Why Proper Liquidation + Role of Liquidator in Sharjah

Proper liquidation is essential to:

  • Ensure compliance with SEDD and federal regulations
  • Discharge all liabilities to creditors, employees, and authorities
  • Preserve your corporate reputation and protect owners from future risks

A licensed liquidator is central to achieving this. Their duties include:

  • Verifying financial statements
  • Managing asset disposition
  • Coordinating with creditors and stakeholders
  • Preparing the final audit report for SEDD
  • Ensuring no objections remain during the public notice phase

At The Capital Zone, we partner with certified Sharjah liquidators to guarantee your closure is handled precisely, transparently, and without penalties.

Timeline & Cost of Company Liquidation in Sharjah Mainland

Estimated Timeline

  • Resolution & liquidator appointment: 5–10 working days
  • Public notice period: 45 days
  • Clearances & final submission: 10–20 working days
  • Total expected duration: ~60 to 90 days, depending on complexity

Estimated Cost Range

  • SEDD application & license cancellation: AED 1,500 – 3,000
  • Newspaper publication (45 days): AED 800 – 2,000
  • Liquidator / audit firm fees: AED 5,000 – 12,000+
  • Clearances (utilities, municipal, telecom, bank): AED 1,000 – 3,000
  • VAT deregistration penalties (if applicable): AED up to 10,000+

These figures are estimates based on market practices. Actual costs depend on your company’s scale, pending liabilities, and number of visas.

The Capital Zone Liquidators

Why Choose Our Services?

At The Capital Zone, we specialize in providing end-to-end company liquidation services in Sharjah Mainland, ensuring a smooth, compliant, and transparent process from start to finish.

Our team works closely with SEDD, MOHRE, Immigration, FTA, and other government departments to handle every stage from preparing resolutions and appointing a licensed liquidator to securing all required clearances and submitting the final audit report.

Whether you’re closing a small LLC or a multi-partner establishment, we ensure:

  • Fast and compliant liquidation under Sharjah Economic Development Department (SEDD) guidelines

  • Coordination with certified auditors and liquidators for accurate financial closure

  • Settlement of all dues and liabilities without delays or penalties

  • Transparent pricing and clear communication throughout the process

If you’re planning to close your business in Sharjah Mainland, The Capital Zone is your trusted liquidation partner.

Contact us today to start your liquidation process with expert support and complete peace of mind.

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Frequently
Asked Questions

It’s the official process of legally closing a business under SEDD, settling debts and cancelling the trade license.

Typically 60 to 90 days, including the 45-day public notice.

Estimated between AED 8,000 and 20,000+, depending on size, number of visas, and outstanding liabilities.

Yes, for LLCs and shareholding companies, a licensed liquidator is required.

Trade license, MoA, shareholder resolution, liquidator acceptance, newspaper ad proof, NOCs, final audit report, bank closure, etc.

You risk fines, blacklisting, tax liability, and legal challenges.

Some steps (e.g. application submission, visa cancellations) may be done via SEDD portals, but most clearances require physical NOCs.

Yes, but only for dormant companies with no remaining assets, liabilities, or operations. It’s simpler but reversible and not suitable for active businesses.

The Capital Zone Liquidators

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