Close the company properly, so nothing is left running in your name
A company that has stopped trading has not stopped existing. The licence keeps falling due for renewal, fines build up on an expired licence, the visas issued under it stay valid, and the filing obligations — including the corporate tax return — stay with the shareholders. Liquidation is the process that ends all of it in the correct order and removes the company from the register.
We act as the single point of contact for the whole closure: the shareholder resolution and the appointment of a licensed liquidator, the authority’s notice period, the clearances from immigration, labour, the bank, customs, the landlord and the tax authority, the liquidator’s final report, and finally the cancellation of the licence and the certificate of deregistration.
Service overview
Voluntary liquidation of mainland LLCs, free zone companies and branches across the UAE, and strike-off of offshore companies. We prepare the resolutions, coordinate the appointed liquidator and the final audit, cancel the establishment card, work permits and visas, close the bank account and the VAT and corporate tax registrations, settle the authority’s fees and fines, and collect the deregistration certificate. If the business is continuing in another form — a share transfer, a move to another jurisdiction, a merger — we look at that route first, because it is sometimes cheaper than closing and starting again. Closures sit within our Licensing and Compliance practice.
- Shareholder resolution, liquidator appointment and notice period handled with the licensing authority
- Visas, work permits and establishment card cancelled in the right sequence
- Bank account, VAT and corporate tax deregistration and the liquidator’s final report
- Licence cancellation and deregistration certificate delivered to you
How liquidation works
1. Decision and resolution. The shareholders resolve to dissolve the company and appoint a liquidator — an audit firm licensed and accepted by the authority. For mainland companies the resolution is notarised; free zones use their own resolution forms.
2. Notice to the authority. The resolution and the liquidator’s acceptance letter are filed with the licensing authority, which records the company as under liquidation and starts the notice period during which creditors can lodge claims. Mainland companies publish a liquidation notice; most free zones run their own notice period.
3. Clearances. Employee and partner visas are cancelled and end-of-service dues settled, the establishment card and labour file are closed, the bank account is closed and a closure letter obtained, the lease, utilities and customs code are terminated, and the VAT and corporate tax registrations are deregistered with the Federal Tax Authority.
4. Liquidation report. The liquidator audits the final accounts and issues the report confirming that the assets have been realised, the liabilities settled and nothing remains outstanding.
5. Cancellation. The report, the clearance letters and the original licence are submitted. The authority cancels the licence, issues the deregistration certificate and removes the company from the register.
Voluntary, creditor-driven and court-ordered liquidation
Most closures we handle are voluntary: the shareholders decide the business has run its course or is being restructured. Liquidation can also be forced. Creditors can apply to the court when a company cannot pay its debts, and a regulator can order closure for a breach of its rules. The sequence above is the same in each case, but a court-ordered liquidation is supervised by the court and the liquidator it appoints. We assist in all three situations, and where a company is insolvent we bring in a lawyer early, because the UAE’s bankruptcy law places duties on directors from the moment the company cannot pay its debts.
What each authority asks for
Dubai mainland (DET). Notarised shareholder resolution and liquidator appointment, liquidator’s acceptance letter and licence copy, publication of the liquidation notice and the waiting period that follows, clearance letters from MOHRE and immigration, the bank, DEWA, the landlord or Ejari, customs and the Federal Tax Authority, the liquidator’s final report, and the original licence and memorandum for cancellation.
Dubai and northern-emirates free zones (IFZA, DMCC, Meydan, Dubai South, DAFZA, SHAMS, RAKEZ, Ajman and others). Shareholder or board resolution on the zone’s template, liquidator appointment where the zone requires an audited liquidation report, cancellation of visas and the establishment card, bank closure letter, lease termination and handover of the office or desk, settlement of zone fees and fines, and the zone’s own notice period before the licence is cancelled. Some zones offer a simpler strike-off for companies with no employees and no liabilities.
Abu Dhabi and the other emirates (ADDED, SEDD and the other economic departments). The same sequence as Dubai mainland through the local department, with its own notarisation and publication requirements.
Offshore companies (JAFZA Offshore, RAK ICC). Resolution through the registered agent, bank closure, return of the share certificates and the agent’s deregistration filing — no visas or office to cancel.
Documents you will need
- Trade licence, memorandum and articles, and all amendments since incorporation
- Passport, Emirates ID and visa copies of the shareholders, manager and every person sponsored by the company
- Notarised shareholder resolution to dissolve the company and appoint the liquidator
- Liquidator’s acceptance letter and licence copy
- Bank closure letter, lease or Ejari cancellation and utilities clearance
- Final audited accounts, the liquidation report and VAT and corporate tax deregistration confirmations
- Original licence, establishment card and company stamp for return to the authority
- Customs code and any special permits or approvals that have to be cancelled
Key features
The most expensive closure is the one that was never done. An abandoned licence keeps accruing renewal penalties, immigration fines grow for every visa left open, and when the shareholders next apply for a licence or a visa anywhere in the UAE the unpaid record surfaces. A proper liquidation costs a known amount once; an abandoned company costs an unknown amount for years.
The order matters as much as the paperwork. Close the bank account before the final audit and the liquidator cannot sign off; cancel the visas before the end-of-service dues are paid and the labour file will not close. We sequence the steps so that each clearance is ready when the next authority asks for it, and we tell you before anything is filed what fees and fines will be payable.
Frequently asked questions
Most straightforward closures complete within two to three months, driven mainly by the authority’s notice period and how quickly the visa, bank and tax clearances come through. Companies with employees, open liabilities or several branches take longer.
Mainland companies and most free zone companies must appoint a licensed liquidator, who audits the final accounts and issues the liquidation report the authority requires. Some free zones allow a simpler strike-off for a company with no employees, no debts and no activity; we confirm which route your authority accepts.
Every visa sponsored by the company — employees, partners and their dependants — must be cancelled before the licence can be cancelled. Employees are paid their end-of-service dues first; anyone staying in the UAE needs a new sponsor or a change of status within the grace period.
You can, but the company continues to exist, fines accrue on the expired licence, the open visas become overstays, and the shareholders remain liable. The record follows them to the next licence or visa application anywhere in the UAE. Liquidation ends the liability; expiry does not.
Yes. A company being wound up must still deregister for VAT and corporate tax with the Federal Tax Authority and file the final returns up to the date of cessation. We handle the deregistration as part of the closure.
Then it is not a voluntary liquidation but an insolvency, and the UAE bankruptcy law applies. We involve a lawyer at the outset, because directors have personal duties from the moment the company cannot pay its debts and the court supervises the process.
7,000+companies established
2016in the UAE since
DEDrecognised by Dubai’s DED
4offices — Dubai, Riyadh, Muscat & UK
Closing a company? Tell us the authority, the licence status and whether any visas are still open.
Winding down a company?
Give us the authority and the current state of the licence, the visas and the bank account. We list the steps, the clearances and the costs before anything is filed.
