Joint Stock Company Liquidation in Dubai
Legally Dissolve Your PJSC or Private JSC With Full Board Oversight and Shareholder Protection
Closing a Joint Stock Company (JSC) in Dubai involves a complex, board-led liquidation process governed by Federal Decree Law No. 32 of 2021. CapitalClosure coordinates every legal, regulatory, and financial requirement from shareholder approval to liquidator reporting and final deregistration.
What Is a Joint Stock Company (JSC)?
A Joint Stock Company in Dubai is a business entity with:
- Multiple shareholders
- Capital divided into shares
- Board of Directors and corporate governance obligations
Types include:
- Multiple shareholders
- Capital divided into shares
- Board of Directors and corporate governance obligations
When such a company is closed, it must:
- Obtain shareholder and board approval
- Appoint a liquidator
- Notify all shareholders and creditors
- Complete clearances, liquidation reports, and financial disclosures
- Cancel the trade license and regulatory registrations
️ Full JSC Liquidation Process in Dubai
Step 1: Board Resolution & Shareholder General Assembly
- Prepare a Board Resolution proposing liquidation
- Call a General Assembly (as per company’s AOA)
- Pass a special resolution to liquidate
- Appoint a licensed liquidator and define scope of powers
Step 2: Notarization & Official Liquidator Appointment
- Register resolutions with DED / SCA / Ministry of Economy
- Sign liquidation agreement with appointed auditor or liquidation firm
- Publish liquidation notice in two Arabic newspapers (45 days)
Step 3: Clearance Procedures Begin
CapitalClosure manages all regulatory and operational clearances:
- MOHRE – Employee termination and final settlement
- GDRFA – Visa cancellations
- FTA – VAT deregistration, final return, tax clearance
- Utilities (DEWA / Etisalat / DU) – Account closures
- Chamber of Commerce & Municipality – NOCs and deregistration
- Bank Coordination – Settlement of liabilities and account closure
Step 4: Liquidation Audit & Final Report
Liquidator prepares:
- Statement of financial position
- Settled liabilities confirmation
- Shareholder distribution breakdown
- Final liquidation report
Shareholders approve final report in closing General Assembly
Step 5: License Cancellation & Corporate Deregistration
- Submit report and resolutions to DED or Free Zone Authority
- Cancel trade license, chamber membership, and tax file
- Submit final auditor certificate to Securities and Commodities Authority (SCA) if listed
Step 6: Post-Closure Documentation
- Deliver closure certificate to all stakeholders
- Support global HQ (if foreign-owned) with audit and compliance files
- Secure record retention for regulatory and audit purposes
Required Documents
Document | Notes |
| Trade License | Valid PJSC or PrJSC license |
| MOA / AOA | For procedural and voting compliance |
| Board & Shareholder Resolutions | Signed, notarized, Arabic-translated |
| Shareholder IDs / Passports | For all local or foreign stakeholders |
| Liquidator License & Appointment Letter | Certified by Dubai authorities |
| Final Audit & Liquidation Report | Signed by auditor and approved by assembly |
| Clearance Certificates | MOHRE, FTA, Chamber, Municipality, etc. |
| Bank Clearance Letter | Final statement and account closure letter |
Who This Service Is For
- UAE-based Private Joint Stock Companies (PrJSC)
- Public Joint Stock Companies (PJSC) listed with SCA or operating locally
- Foreign companies with registered UAE branches as JSCs
- Holding companies, large family-run groups, and institutional investors seeking exit
Legal Risks If Improperly Liquidated
Issue | Risk |
| Incomplete General Assembly process | Legal challenge to liquidation |
| Failing to appoint a liquidator | DED and SCA non-compliance |
| Ignoring VAT deregistration | AED 10,000+ FTA penalty |
| Delayed employee visa cancellation | MOHRE sanctions, travel restrictions all local or foreign stakeholders |
| Poor audit documentation | Liability for directors, asset disputes |
Google Reviews from Dubai Clients
Why CapitalClosure?
5+ years guiding board-led liquidations in Dubai
Experts in PJSC and PrJSC compliance under UAE law
Trusted by legal firms, auditors, and shareholder groups
Full coordination with SCA, Ministry of Economy, DED, and Free Zones
Structured process and documentation designed for board-level clarity and investor confidence
Fast, Compliant Closure of Joint Stock Companies
Avoid penalties and delays. We manage liquidation filings, NOCs, and legal formalities.
Frequently Asked Questions?
Is SCA approval needed for every PJSC liquidation?
Yes — for publicly listed JSCs, the Securities and Commodities Authority must be notified and approve the final deregistration.
What’s the difference between liquidating a PJSC vs. LLC?
A PJSC requires formal shareholder voting, liquidation committee setup, and regulator reporting, unlike the more simplified LLC closure.
Can shareholders appoint a third-party liquidator?
Yes — we partner with certified liquidators recognized by DED and Free Zones.
Can we distribute remaining assets among shareholders?
Yes, but only after all liabilities are cleared and the liquidation report is finalized.
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