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Notice of Proposal to Strike Off
I need a Notice of Proposal to Strike Off for a company that has ceased trading and has no outstanding liabilities, ensuring compliance with UAE regulations. The document should include the company's name, registration number, and a statement of intent to dissolve the company, with a specified period for objections.
What is a Notice of Proposal to Strike Off?
A Notice of Proposal to Strike Off is an official warning from the UAE Registry Authority that a company might be removed from the commercial register. This typically happens when a business hasn't filed required reports, paid fees, or shown signs of active trading for an extended period.
Once issued, company directors have 90 days to respond or take corrective action before the business gets removed from the register. This process, governed by UAE Commercial Companies Law, helps regulators maintain an accurate database of active companies and remove defunct ones. Foreign branch offices and mainland companies are particularly affected by these notices.
When should you use a Notice of Proposal to Strike Off?
UAE regulatory authorities issue a Notice of Proposal to Strike Off when companies stop meeting their legal obligations. Common triggers include failing to file annual returns, not maintaining a proper registered office, or showing no signs of business activity for extended periods.
Business owners receive this notice before permanent removal from the commercial register. This gives them one final chance to either restart operations, update their compliance status, or voluntarily close the company properly. The notice period also protects creditors by alerting them to potential company dissolution, allowing time to settle outstanding claims.
What are the different types of Notice of Proposal to Strike Off?
- Initial Strike Off Notice: Issued directly by the UAE Registry Authority when a company fails basic compliance requirements - includes company details and deadline for response
- Voluntary Strike Off Notice: Requested by company directors who wish to close their business legally - requires confirmation of settled debts and tax clearance
- Administrative Strike Off Notice: Sent after multiple failed attempts to contact the company or verify its operations - includes evidence of non-compliance
- Branch Office Strike Off Notice: Specifically formatted for foreign company branches, requiring additional documentation about the parent company
Who should typically use a Notice of Proposal to Strike Off?
- UAE Registry Authority: Issues the Notice of Proposal to Strike Off and oversees the entire removal process
- Company Directors: Primary recipients who must respond to the notice and take corrective action to maintain registration
- Creditors: Interested parties who need to be aware of potential company dissolution to protect their claims
- Legal Representatives: Help companies respond to notices or handle the strike-off process properly
- Business Partners: Need to know about potential dissolution to protect their interests and ongoing contracts
How do you write a Notice of Proposal to Strike Off?
- Company Details: Gather full legal name, trade license number, and registered office address
- Compliance History: Document any missed filings, unpaid fees, or regulatory breaches
- Contact Information: Verify current directors' and shareholders' details for official notifications
- Financial Status: List any outstanding debts, creditor claims, or tax obligations
- Communication Records: Compile previous warning notices or correspondence about compliance issues
- Legal Timeline: Note key dates including last annual return, previous notices, and response deadlines
What should be included in a Notice of Proposal to Strike Off?
- Company Identification: Full legal name, registration number, and registered office address
- Legal Authority: Citation of relevant UAE Commercial Companies Law provisions
- Grounds for Strike Off: Clear statement of compliance failures or reasons for proposed removal
- Response Period: Explicit 90-day deadline for objections or corrective actions
- Required Actions: Specific steps the company must take to prevent strike-off
- Official Signatures: Registry Authority representative's name, title, and signature
- Distribution List: Names and addresses of all parties receiving the notice
What's the difference between a Notice of Proposal to Strike Off and a Notice of Default?
A Notice of Proposal to Strike Off differs significantly from a Notice of Default in both purpose and consequences within UAE business law. While both are formal notifications, they serve distinct functions in different situations.
- Timing and Purpose: A Strike Off Notice is issued by regulatory authorities when a company fails to maintain basic compliance, while a Notice of Default addresses specific contractual breaches between business parties
- Issuing Authority: Strike Off Notices come exclusively from the UAE Registry Authority, whereas Default Notices can be issued by any contracting party
- Response Timeline: Strike Off Notices grant 90 days for remediation before company dissolution, while Default Notices typically allow shorter, contract-specific cure periods
- Legal Impact: Strike Off leads to company removal from the commercial register, but Default Notices typically trigger contractual remedies or penalties without affecting company registration
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