Company Liquidation in the AIFC (Strike Off)

Strike Off is a procedure for removing a company from the official register of the AIFC (AIFC Registrar of Companies). It signifies the official termination of a company's legal existence.
The procedure can be:

• Initiated by the company itself – if it has completed all business activities, has no debts, and wishes to voluntarily dissolve.
• Initiated by the AIFC Registrar – if the company is inactive, fails to submit reports, does not pay required fees, or violates AIFC rules.

After a Strike Off:

• The company ceases to exist.
• However, its directors and shareholders may remain liable for any outstanding debts or obligations.
• Public companies are required to retain their records for 6 years after being struck off.

In simple terms, Strike Off is a simplified liquidation process for companies that are no longer operating.

Voluntary Strike Off (at the company’s initiative):
A company may apply for Strike Off if:

• Its business activities have been completed;
• It has no assets, debts, or ongoing legal disputes;
• It has not conducted any activity in the past 3 months (including name changes, asset sales, etc.).

Compulsory Strike Off (at the initiative of the AIFC Registrar):
The Registrar may strike off a company if:

• The company fails to file annual returns;
• It does not pay required fees;
• It does not respond to official correspondence for over 12 months;
• It violates AIFC regulations;
• It fails to complete the liquidation process or to appoint a liquidator.

After submitting an application for voluntary liquidation and publishing the corresponding notice through official AIFC sources, a mandatory three-month waiting period begins. During this time, any interested party may file objections against the company’s removal from the register.

Upon the expiration of this period, and provided that no objections have been raised and a tax clearance certificate confirming the fulfillment of all tax obligations has been obtained, the company will be struck off the Registrar’s register.

The minimum duration of the procedure is 3 months, but in practice, the process may take longer, especially if mandatory reports have not been submitted or if there are outstanding tax liabilities.