Liquidation Audit Report UAE: The Report Your Authority Needs to Close the Company
The licensing authority is not to revoke the license of a liquidated company without confirming the settlement of claims, assets, and liabilities. The liquidation audit report is one such verification for the UAE. Avyanco will finalize the accounts, submit the final report to the liquidator, and assist you in dealing with the authorities.
- 11,500+ businesses supported
- DET licence #909402
- Mainland and free zone closures
When you need an audit report for company closure in the UAE
The report is usually required in these cases:
Usually required
- LLC liquidation, either voluntary or court-ordered
- Free zone companies being deregistered
- Dormant companies that want a clean exit
- Branch closures
Usually not required
- Typically, a sole proprietorship does not require a license to terminate its license.
This process has been addressed in our guide on cancellation of the trade license. Reach your local authority as soon as possible. An absent liquidation report in the UAE could delay the cancellation of your license by months.
What a liquidation report in the UAE is
This is a dedicated space for owners who are in the process of liquidating an LLC, FZE, or FZCO in a free zone. It even includes the verification report for dormant companies and those who want to conduct liquidation. The following sections are dedicated to this discussion to inform you about the composition of the liquidation and audit report, who signs it, and its costing in the context of Dubai.
In the liquidator's report, the procedure of deregistration of the company is stated. The document includes information about how the assets are distributed, and how obligations are fulfilled at the moment of the company's closing. It is stated that there are no outstanding claims to be settled.
The liquidator's report, together with the financial statement, makes the liquidation audit report in the UAE addressed to the regulating authorities. The report prepared by the liquidator differs from the annual statutory audits conducted for the company over the year.
Watch: what a UAE free zone is, in 35 seconds
Who can prepare the liquidator report in Dubai?
The shareholders appoint the liquidator by resolution. The authority expects a licensed liquidator, normally an outside firm, not a shareholder, director, or in-house accountant.
Free zones may add their own rules on who can act. This is why the liquidator report in Dubai usually comes from an outside audit firm, not from the company's own team.
Mainland liquidation audit report in Dubai
Businesses in mainland Dubai need to follow the regulations by the Department of Economy and Tourism (DET). As soon as shareholders sign a notarized termination agreement, a liquidator gets appointed. Afterward, the company has to publish an announcement regarding the liquidation in two Arabic local newspapers for a single day.
Various creditors have a period of 45 days from the date of announcement to make their claims. The Department of Economy and Tourism (DET) thereafter requests a declaration to confirm that no objections have been received.
Free zone liquidation audit report
Free zones differ on what they accept. Some ask for an audited liquidation report. Others take closing accounts or an auditor's confirmation. Notice periods and newspaper rules also vary by zone.
Mainland vs free zone requirements
Each authority sets its own forms, notice period, and list of clearances. Check which one licenses your company before you plan the timeline.
| Requirement | Dubai mainland (DET) | Free zones |
|---|---|---|
| Newspaper notice | Two Arabic local newspapers, one day only | Set by the zone, and some use an internal notice |
| Creditor period | 45 days from the announcement | Set by each zone |
| Key documents | Final report and a declaration that no objections were received | Audited report, closing accounts or auditor's confirmation, depending on the zone |
| Who signs | The appointed liquidator | The appointed liquidator, under zone rules |
How the process works
- 1
Scoping call and document review
We confirm your authority, entity type and what is missing.
- 2
Bring the books up to date
If years are unrecorded, we start with backlog accounting.
- 3
Prepare closing accounts to the liquidation date
- 4
Collect clearances and creditor confirmations
- 5
Draft and sign the report
- 6
Submit to the authority and answer its queries
One partner-led team, start to finish
Licence, bank account, visas and tax handled by one named advisor, with government fees and our fee always shown separately.
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Liquidation audit services in the UAE: what Avyanco delivers
Avyanco delivers closing accounts, the liquidator's report, clearance tracking and submission support. We coordinate with our closure team, so no step waits on another. If you want to close the company end to end, the liquidation team handles the rest.
- 11,500+ businesses supported
- Closing accounts and the liquidator's report
- Clearance tracking and submission support
Accounts
- Closing accounts
Report
- The liquidator's report
Clearances
- Clearance tracking
Submission
- Submission support
What the final audit report for liquidation contains
The final audit report on liquidation gathers together the final position of the company in one report. Each authority has its own list; thus, the points below are not universal.
- Closing financial statements (statement of affairs) up to the date of liquidation
- Realized assets and the method of sale
- Settled liabilities with documentary proof.
- Notice to the creditors and proof of no objections
- Closing of the bank accounts and a bank liability letter
- Cancellation of visas, labor and establishment cards
- Confirmation of VAT deregistration, corporate tax de-registration, and goAML deregistration if applicable
- Distribution of any surplus among the shareholders
- Confirmation from the liquidator and partners that no objections had as well
Liquidation audit cost in Dubai
Your liquidation audit cost in Dubai depends on these factors:
Cost factors
- Entity type
- Years of unaudited books
- Number of transactions
- Open debts
- Number of clearances needed
- Whether Avyanco also acts as the liquidator
We give a fixed quote after reviewing your documents. Government fees and newspaper notices are charged separately.
Questions about liquidation reports
Is there a need for liquidation audit reports in the UAE?+
Not always. Most cautioned LLCs and numerous free zone companies require it to complete their deregistration. The authority has the final say, and our audit services team can verify the list.
How much time does it take to prepare a liquidation audit report in Dubai?+
Preparation time is relative to the documentation, but notice period is a prior task. In Dubai mainland, the notice period is 45 days; therefore, start early with the shareholder resolution and the process of document gathering.
Would our accountant be able to prepare the liquidation report?+
Your accountant can take care of the books. But the final signing of the report will be done by the appointed liquidator. Authorities require licensed third-party professionals and not the shareholders, managers, or accountants of the company.
Is it necessary for a dormant company to have an audit report when closing in the UAE?+
Normally yes, if it has an active license and wants to deregister. The dormant status does not exempt from notice period and regulatory clearances. Consult the regulations of the relevant authority.
What is the typical liquidation audit price in Dubai?+
It certainly depends on the type of the entity, years that have not been subjected to audit, scale of operations, debts, and resolutions. The fees related to governmental services and publications will be charged additionally.
What happens in case a company has unpaid debts?+
It is obliged for the liquidator to pay the debts before the final report is prepared. If there are not enough assets, the liquidator performs his duties prescribed by the UAE Commercial Companies Law. Creditors with unpaid debts will be able to prevent the closure of the company.
Do I have to submit the final Corporate Tax returns?+
Indeed, the final return will cover the period until closing. Make sure that you apply for deregistration of Corporate Taxes with the authorities within 3 months after the closing.
Is it possible to file the application if I have already left the UAE?+
In most cases, this is possible. Shareholders may sign all the documents remotely and the process is solved by the liquidator according to the regulations.
Guides to help you decide
Request your liquidation audit report in the UAE
Please provide your jurisdiction, type of entity, and last audit year so that we can assess your paperwork and issue you an offer.
Sources: UAE Commercial Companies Law · Department of Economy and Tourism (DET) · Federal Tax Authority · licensing authority of each free zone.
Verification & independence: Avyanco Business Consultancy LLC is a private firm, independent of DET, the Federal Tax Authority, every free zone authority and every other UAE authority, and not affiliated with any government agency. This page contains general information only, it is not a piece of legal advice. You should note that the process of liquidation, notice periods, submission formats, etc., are determined by each licensing authority individually and may change.