Company Liquidation in Sharjah Media City
What is

Company Liquidation in Sharjah Media City Free Zone

Company liquidation in SHAMS is the legal process of closing a registered entity, dissolving its structure, and striking its name off the official SHAMS company register.

During liquidation, the company settles debts, pays employee dues, closes bank accounts, and returns its trade license and establishment card.

This process ensures:

  • All financial and contractual liabilities are cleared.
  • Employee visas and labour cards are properly cancelled.
  • The company is officially deregistered from the SHAMS Authority and the Federal Tax Authority (FTA) if registered for VAT.

Stakeholders and creditors are duly notified through a public announcement.

Company Liquidation in Sharjah Media City (SHAMS) Free Zone

Liquidating a company in the Sharjah Media City (SHAMS) Free Zone involves formally winding up business operations, settling all outstanding dues, canceling visas, and obtaining final clearances from SHAMS and related UAE authorities.
 The process ensures that all financial, legal, and administrative obligations are fulfilled before your company’s license is officially canceled.

At The Capital Zone, we help companies in SHAMS Free Zone navigate this complex process efficiently ensuring compliance, proper documentation, and smooth deregistration.

Types of Company Liquidation in SHAMS Free Zone

  1. Voluntary Liquidation
    • Initiated by the company’s shareholders or directors.
    • Common reasons include business restructuring, project completion, or market exit.
    • The company appoints a liquidator (if required) and settles all obligations before deregistration.
  2. Compulsory (Involuntary) Liquidation
    • Ordered by SHAMS Authority or a UAE court when a company fails to meet legal or financial obligations.
    • Often applies to companies facing insolvency or non-compliance issues.
  3. Simplified Deregistration / Strike-Off
    • For dormant or inactive companies with no employees, debts, or activity.
    • Does not usually require a liquidator and is completed faster than a full liquidation.

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

Step 1: Internal Resolution

  • Prepare a Board Resolution stating the intent to liquidate.
  • A Shareholders’ Special Resolution (usually 75% approval) must confirm liquidation and appoint a liquidator if necessary.
  • Get resolutions attested and legally translated into Arabic (if required).

Step 2: Appointment of Liquidator (if applicable)

  • A licensed liquidator may be required depending on your business type.
  • The appointed liquidator issues a Letter of Acceptance, confirming responsibility for completing the liquidation process.
  • Once appointed, all powers of the board transfer to the liquidator.

Step 3: Notification & Initial Approvals

  • Notify SHAMS Free Zone Authority of your intent to liquidate.
  • Submit the Board and Shareholder Resolutions, Trade License copy, and company incorporation documents.
  • The Authority will acknowledge the start of liquidation.

Step 4: Settle Liabilities

Before de-registration, the company must:

  • Clear outstanding debts to suppliers, banks, landlords, and creditors.
  • Settle employee dues, including salaries, end-of-service benefits, and leave encashments.
  • Cancel all employee and partner visas through the Immigration Department.
  • Close corporate bank accounts and obtain closure confirmation from the bank.

Step 5: Obtain External Clearances

Clearance letters (No Objection Certificates) must be obtained from:

  • Federal Tax Authority (FTA) – for VAT deregistration (within 20 days of cessation).
  • Ministry of Human Resources & Emiratisation (MOHRE) – for labour-related obligations.
  • Immigration Department (GDRFA) – for visa cancellations.
  • SEWA (Sharjah Electricity, Water & Gas Authority) – for final utility settlement.
  • Telecom providers (Etisalat / Du) – for service disconnection.
  • Landlord / Real Estate Department – for lease termination.
     Failure to secure FTA deregistration can result in a AED 10,000 penalty.

Step 6: Real Beneficiary & ESR Compliance

  • Submit Ultimate Beneficial Ownership (UBO) registers (Real Beneficiary Register and Partner/Shareholder Register) within 30 days of appointing the liquidator.
  • Maintain these records for at least five years post-liquidation.
  • If applicable, file Economic Substance Regulation (ESR) notifications and reports for relevant business activities.

Step 7: Newspaper Announcement

  • Publish a liquidation notice in two local newspapers (one Arabic, one English).
  • This notice allows 45 days for creditors to raise objections.
  • No objections after this period confirm smooth continuation of the process.

Step 8: Submission of Final Documents

After completing all settlements:

  • Submit the following to SHAMS Authority:
    • Original Trade License and company documents.
    • Board & Shareholder Resolutions.
    • Liquidator’s Report (if applicable).
    • Clearance Certificates from relevant departments.
    • VAT Deregistration confirmation from FTA.
    • Bank closure letter.

Step 9: Final Deregistration

  • Upon verification, SHAMS issues the Final Deregistration Certificate (Liquidation Certificate) confirming the official closure.
  • The company’s trade license is cancelled, and its name is struck off the SHAMS commercial register.

Key Departments & Stakeholders Involved

Department / Authority

Role in the Liquidation Process

Sharjah Media City (SHAMS) Authority

Reviews and approves liquidation documents, issues the final deregistration certificate.

Federal Tax Authority (FTA)

Manages VAT deregistration and confirms tax clearance.

Ministry of Human Resources & Emiratisation (MOHRE)

Handles labor clearance and employee dues.

General Directorate of Residency & Foreigners Affairs (GDRFA)

Cancels all employee and investor visas.

Sharjah Electricity, Water & Gas Authority (SEWA)

Provides final utility clearance.

Telecommunication Providers (Etisalat / Du)

Issues clearance confirming service termination.

Landlord / Property Management

Confirms lease termination and return of premises.

Commercial Banks

Close corporate accounts and provide closure confirmation.

Required documents for SHAMS Free Zone liquidation

Make sure you collect originals and certified copies where applicable. Missing or incomplete paperwork is the single biggest cause of delay.

Mandatory company documents

  • Original Trade Licence (returned to SHAMS)
  • Certificate of Incorporation / Registration and company formation documents
  • Memorandum & Articles of Association (latest version with amendments)
  • Notarised Shareholders’ Resolution / Board Resolution approving liquidation (signed by required quorum)
  • Liquidator appointment letter and liquidator’s written acceptance (if required)
  • Company Deregistration / Liquidation application form (SHAMS closure form)

Financial & audit documents

  • Final audited financial statements (latest year) or management accounts as requested
  • Final bank statement and bank closure letter confirming account closure and zero balance
  • Final VAT returns and FTA deregistration confirmation (if VAT-registered)
  • List of assets and asset disposal records (sales invoices / transfer documents)

Employee & immigration documents

  • Employee final settlement records (salary, gratuity, accrued leave) and signed settlement receipts
  • Copies of cancelled labour cards and visa cancellation confirmations (GDRFA / immigration)
  • Copies of shareholders’ and directors’ passports & Emirates IDs

Clearances & NOCs

  • MOHRE (labour) clearance or confirmation of employee settlement where required
  • GDRFA / Immigration clearance for visa cancellations
  • SEWA / utility providers clearance (final bill receipts / NOCs)
  • Telecom provider NOC (Etisalat / Du) where applicable
  • Landlord NOC / tenancy termination letter and Ejari cancellation (if applicable)
  • Bank closure / clearance letter(s)
  • Customs / port clearance (if trading with goods) — Fujairah Customs, if applicable

Publication & statutory

  • Proof of newspaper publication(s) (liquidation notice in Arabic + English) and clipping(s) showing notice date
  • Declaration letter / statement from liquidator and shareholders confirming no claims (after notice period)

Final submission documents

    • Liquidator’s final report / Statement of Affairs (if liquidator was appointed)
    • Final clearance bundle (all NOCs, bank letter, VAT deregistration, immigration, MOHRE, utilities, landlord)
    • Power of Attorney (if someone acts on behalf of shareholders)
    • Any additional documents requested by SHAMS at review stage

Common Challenges in SHAMS Company Liquidation

  • Delays in VAT deregistration leading to fines.
  • Unsettled employee dues or visa cancellations.
  • Unreturned trade license or establishment card.
  • Lack of UBO compliance or missing beneficiary registers.
  • Pending bank loans or lease obligations.

Incomplete newspaper publication or creditor notice period.

Timeline & Estimated Cost

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

Factor

Details

Timeline

  • Typically 30 to 60 days, depending on complexity, clearances, and whether a liquidator is required.

Estimated Cost

  • Ranges from AED 2,000 to AED 8,000+, depending on:
  • License type and business structure
  • Number of visas
  • Pending dues or clearances
  • Whether a liquidator or auditor is required.

Liquidator Fees (if any)

  • Usually between AED 2,500 – 5,000, depending on company size.

The Capital Zone Liquidators

Why Choose Our Services?

Our experts manage the entire SHAMS company liquidation process from documentation and clearances to final certificate issuance.

We ensure:

  • All government and authority coordination is handled.
  • VAT and labor deregistration are completed on time.
  • Liquidator reports and resolutions are accurately prepared.

The process is completed legally, efficiently, and without penalties

Contact Us

Frequently
Asked Questions

Typical timeframe is 30–60 days for straightforward voluntary liquidations. Complex cases (multiple visas, pending claims, VAT issues) may take longer.

Many SHAMS cases do not require a licensed liquidator, but if your company has employees, assets, creditors, or the authority requests one, you must appoint a liquidator. Check SHAMS requirements for your license type.

Yes, publish a public liquidation notice (Arabic + English) so creditors can claim within the prescribed notice period (usually 45 days).

All employee visas and labour cards must be cancelled once final settlements are made. MOHRE and GDRFA clearances are required before final deregistration.

If VAT-registered, file final VAT returns and apply for deregistration with the FTA within the timelines specified by the FTA failure to do so can trigger penalties (FTA penalty exposure).

Missing NOCs (banks, utilities, landlord), unpaid employee dues, incomplete VAT deregistration, or missing newspaper proof are the top delay causes.

Yes, Keep company records (including UBO registers, financials and liquidation documents) for the retention period required by UAE regulations (typically five years for certain records).

The liquidator (or company) must review and settle valid creditor claims before final deregistration. Unresolved claims can delay or block deregistration.

Yes we prepare documents, coordinate NOCs, manage VAT and labour deregistration, handle the newspaper notice, liaise with SHAMS, and submit the final report to secure your deregistration.

The Capital Zone Liquidators

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