A company must liquidate its assets to settle debts, loans, and penalties if it is unable to carry out its regular day-to-day operations. In United Arab Emirates, this is referred to as company liquidation.

Whatever is left over will be distributed among the shareholders in accordance with the size of each share. In order to comply with the regulations, set forth by the UAE government, companies that wish to carry out company liquidation in UAE are advised to engage a professional firm.