Cancellation and liquidation

Company Cancellation and Liquidation in the UAE
Which Route Applies to You and What Comes First

Closing a UAE company takes a formal process, not a lapsed licence. Free zone companies close through their zone, and mainland companies go through a liquidator. Visas, dues and tax deregistration come first. A licensed liquidator or lawyer should run any formal liquidation.

By Imran Mirza, Founder & CEO, Xillion Group UAE. Born and raised in the UAE, with 18+ years of professional working experience, including nearly seven years at Barclays and ADCB and 12 years in UAE business setup. Last reviewed 29 October 2026.

Short answer

On the mainland, you pass a dissolution resolution, appoint a liquidator, publish a notice in two Arabic local newspapers, wait 45 days for creditor claims, then file the final report. Free zones have their own routes: RAKEZ publishes AED 3,000 for cancellation of office and co-working licences with 5 working days processing and a 14 day publication, and DMCC states 45 to 60 days. Corporate tax deregistration is due within 3 months and VAT within 20 working days.

Who does the work

Xillion Group UAE is a business setup consultancy. It is not a licensing authority, a liquidator or a law firm. Liquidation is a legal process, so it is coordinated through independent licensed external professional partners, including liquidators and lawyers, who are not Xillion employees. The authority decides approvals.

Xillion Group UAE is a consultancy. It is not a licensing authority, a bank or a law firm, and approvals are decided by the authority. This page is general information, not legal, tax or investment advice, and nothing here is a guarantee.

Who it is for

Who this page is for

  • Owners who no longer need a UAE company and want to stop fees and penalties.
  • Owners of an expired licence who must decide between reinstating and closing.
  • Shareholders winding up after a sale of the business or a partner exit.
  • Companies with employees or investor visas to cancel.
  • Companies registered for corporate tax or VAT that must deregister.
Steps

How it works, step by step

  1. Decide renew or close. Compare the cost to renew with the cost to close. See trade licence renewal.
  2. Pass the shareholder resolution. Record the decision to close in a resolution. Mainland companies need notarised minutes naming the liquidator.
  3. Cancel visas and settle dues. Cancel employee and investor visas and pay final staff dues and outstanding obligations.
  4. Deregister for tax. Corporate tax within 3 months and VAT within 20 working days of the trigger. See corporate tax and VAT services.
  5. Apply to cancel or liquidate. Free zone: apply through the zone with the clearances it lists. Mainland: the liquidator files, with two Arabic newspaper notices and a 45 day claim period.
  6. Collect the certificate and close the bank. Keep the final cancellation certificate and close bank accounts once liabilities clear.
Documents

Documents usually asked for

  • Shareholder resolution, attested where a company is a shareholder
  • Trade licence and establishment card
  • Passport and Emirates ID of owners and managers
  • Visa cancellation proof and labour clearances
  • Bank statements and latest accounting records
  • Landlord, utility and telecom clearances as the authority asks
  • Tax deregistration proof and financial statements up to the cancellation date

Your case may need more or less. We confirm the exact list with the authority or partner before you spend time on it.

Time and cost

Timeline and cost, honestly

ItemAs published
Mainland dissolution certificateAED 520 for the dissolution and liquidator appointment certificate on the UAE portal, plus liquidator, newspaper and other fees. Check current fees.
Mainland creditor period45 days after the newspaper notice
RAKEZ cancellationAED 3,000 plus third-party fees for office and co-working. AED 4,500 for an industrial licence. Processing 5 working days and a 14 day publication.
DMCC termination45 to 60 days once requirements are complete, including two 14 day publications. No fee amounts in the guideline.
Corporate tax deregistrationWithin 3 months. FTA says a complete application is processed within 40 working days and the service is free.
VAT deregistrationWithin 20 working days of the triggering event
Our service feeQuote on request
Detailed pages

Read the page for your case

Common questions

FAQ

What is the difference between cancellation and liquidation?

Cancellation ends the licence. Liquidation is the formal winding up of a company, which settles assets and debts. The route depends on your authority and whether the company can pay its debts.

No. The company stays on record and penalties can build. See expired trade licence.

Mainland companies do, and DMCC says its liquidator should be a reputable auditing or law firm. Free zones differ. A licensed partner can advise.

Corporate tax within 3 months and VAT within 20 working days of the triggering event.

Official fees are listed above where published. Our fee and partner fees are quote on request.

RAKEZ states 5 working days plus 14 days publication, DMCC 45 to 60 days, mainland has a 45 day creditor period plus clearances. Your case may take longer.

Related guides

Related guides

Pages on this site that sit next to this topic:

Sources

Sources and checks

Figures were checked against the authority pages on 29 October 2026 and match our detailed pages. Liquidation wording still needs a lawyer's review.

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Before You Commit.

Book a free 30 minute consultation with Imran Mirza, Founder & CEO. We look at your plans and set out the right route, the documents and the costs in plain words. Licences, visas and bank accounts remain subject to authority and bank approval.