Closing a Company in Dubai

Closing a Company in Dubai
Liquidation and Deregistration Explained

Closing a company is rarely anyone's favourite job. But walking away from a licence without closing it properly can leave you with fines, a blocked visa file, or tax penalties that keep growing in the background.

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Guide

Why you shouldn't just let the licence expire

The good news is that the process is clear once you see the order of steps. This page covers how it works for mainland companies, how free zones handle it, and the tax and visa pieces that people often forget.

An expired licence doesn't close the company. The company still exists on record, and so do its obligations. RAK FTZ, for example, warns that not following the deregistration procedure results in penalties and possible legal action. Tax registrations also stay open until you cancel them, and the Federal Tax Authority sets firm deadlines for that (see below).

If you're unsure whether to close or keep the company dormant, it's worth checking renewal costs against closure costs first.

Guide

Closing a mainland company in Dubai

The UAE government portal sets out the Dubai process for de-registering commercial companies. For companies, the application is submitted by the liquidator. It runs in two phases.

Phase 1: Dissolution and appointing a liquidator

  • Notarised general assembly minutes confirming the liquidation and naming the appointed liquidator
  • The liquidator's acceptance letter, with a copy of their licence, auditor registration certificate and notarised signature specimen
  • A fee of AED 520 for the dissolution and liquidator appointment certificate, subject to legal advisor approval (check current fees)
  • An announcement of the liquidation in two Arabic local newspapers for one day. Creditors then have 45 days to submit claims.

Phase 2: Final cancellation

  • The original newspaper notice and the company's final report
  • A declaration from the liquidator and partners that no objections were received within the 45 days
  • Cancellation of labour cards through the Ministry of Human Resources and Emiratisation (MOHRE)
  • A copy of the general assembly minutes and the dissolution certificate

Sole establishments, civil companies and branches follow shorter versions. For a sole proprietorship, the portal lists cancelling labour cards. Branches of foreign companies also need the Ministry of Economy's liquidation decision and an attested board decision.

Guide

Closing a free zone company

Each free zone has its own deregistration rules, but the pattern is similar. Here is how RAKEZ describes it, as an example:

  1. Cancel all employee visas first through the RAKEZ portal. Investor, partner and manager visas are cancelled during the licence cancellation itself.
  2. Clear and return the facility to its original condition.
  3. Apply for deregistration on the RAKEZ 360 portal and upload documents.
  4. RAKEZ inspects the facility, then issues a quotation and invoice.
  5. After payment, RAKEZ issues a Cancellation Certificate.

RAKEZ lists these documents, among others:

  • Shareholders' resolution signed by all shareholders (attested if the shareholder is a company)
  • General manager's resignation or termination letter confirming all dues are settled
  • Clearances such as utilities, customs NOC, telecom and civil defence where they apply
  • Bank clearance if there are outstanding mortgages or security interests

RAKEZ states a licence cancellation fee of AED 3,000 (AED 4,500 for an industrial licence), plus external fees such as immigration where applicable, with 5 working days processing and a 14 day newspaper publication. Other free zones charge different fees, so check current pricing with your zone.

The Dubai Development Authority also asks free zone licence holders to complete deregistration properly, with separate procedures for FZ-LLCs, branches and freelancer licences.

Guide

Don't forget tax deregistration

These deadlines are easy to miss.

  • Corporate tax. Under Federal Tax Authority Decision No. 6 of 2023, a company must apply for corporate tax deregistration within 3 months of the date it ceases to exist, stops its business, is dissolved or liquidated.
  • VAT. The VAT Executive Regulation says a registrant must apply to cancel VAT registration within 20 working days of the event that triggers it, such as ceasing to make taxable supplies. The VAT law also confirms that deregistration doesn't cancel the FTA's right to claim any tax or fines still due.

File your final returns and settle any balance before or alongside the deregistration request. See our corporate tax and VAT registration pages for more.

Guide

Visas, labour and bank accounts

  • Visas. Employee visas and labour cards must be cancelled before the licence can close. At RAKEZ, for example, investor, partner and manager visas are cancelled during the licence cancellation itself, so plan ahead if you need a new visa, which will be subject to authority approval.
  • Employees. Settle final salaries and end-of-service dues under UAE labour law. Check current MOHRE requirements before cancelling labour cards.
  • Bank account. Close the corporate account once final payments are done. Any closure requirements are set by your bank, and bank clearance may be needed if there are loans or security interests.
Guide

A simple closure checklist

  1. Decide to close and pass a shareholder or general assembly resolution
  2. Appoint a liquidator (mainland companies)
  3. Publish the liquidation notice and wait out the objection period
  4. Cancel employee visas and labour cards
  5. Settle debts, final salaries and supplier balances
  6. File final VAT and corporate tax returns, then apply for deregistration within the deadlines
  7. Get clearances (utilities, customs, telecom, landlord)
  8. Submit the final cancellation to DET or your free zone
  9. Close the bank account and keep records
Guide

How XILLION helps

We map out the exact steps for your licence type, line up the liquidator for mainland companies, coordinate visa cancellations through our PRO services, and keep the tax deregistration deadlines on track so nothing is missed. If you'd rather restructure than close, we can also look at moving the company or changing its activity. Imran Mirza, Founder & CEO, was 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.

Talk to us: WhatsApp +971 50 158 5088, contact us or book a free call.

Common Questions

FAQ

How do I close a mainland company in Dubai?

You pass a resolution to dissolve, appoint a liquidator, publish a notice in two Arabic local newspapers, wait 45 days for creditor claims, then submit the final report and cancellation documents. The UAE portal says the application for companies is submitted by the liquidator.

For mainland companies there is a 45 day creditor claim period after the newspaper notice, plus time for clearances. Free zones differ: RAKEZ states 5 working days processing and a 14 day publication period.

Official fees vary by authority. For Dubai mainland, the UAE portal lists AED 520 for the dissolution and liquidator appointment certificate, and RAKEZ lists AED 3,000 for licence cancellation, plus liquidator, publication and external fees. Check current fees with your authority.

The company stays on record with its obligations, and penalties can build up. RAK FTZ states that not following deregistration procedures results in penalties and possible legal action.

Within 3 months of the company ceasing business, dissolving or being liquidated, under FTA Decision No. 6 of 2023.

Within 20 working days of the triggering event, such as ceasing to make taxable supplies, according to the VAT Executive Regulation.

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Ready to Begin

Talk It Through
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.

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Please note: Government fees, regulations and processing timelines are subject to change by the relevant authorities without prior notice. Please contact us for the latest requirements applicable to your case.