Company liquidation

Company liquidation in Dubai and the UAE, closed properly.

Closing a company takes more than letting the licence lapse. We act on voluntary liquidations for mainland and free zone companies: the resolution, the liquidator’s work, creditor notices, visa and permit cancellations, the licence cancellation and the final VAT and corporate tax deregistration.

Creditor notice period on the Dubai mainland
45 days
Business days to apply for VAT deregistration
30 days
To deregister for corporate tax after liquidation
3 months
An advisor reviewing and signing financial documents with a client
One teamFrom resolution to tax deregistration

Overview

A lapsed licence is not a closed company.

A company that simply stops renewing its licence keeps its obligations. Fines for non-renewal build up, the company stays registered for VAT and corporate tax, and the shareholders cannot cleanly start again. Voluntary liquidation ends all of that in the right order.

On the Dubai mainland, the shareholders resolve to dissolve the company and appoint a liquidator, the notice runs in two local Arabic newspapers, and creditors have 45 days to come forward before the licence is cancelled. Free zones run their own processes: DMCC publishes the notice itself for 14 calendar days, and JAFZA publishes the newspaper notice on the company’s behalf. After the licence is cancelled, the company must deregister for corporate tax within 3 months, and for VAT within 30 business days of the obligation arising.

  • Mainland and free zone companies
  • Liquidator’s report and final accounts
  • Visas, permits and clearances handled
  • VAT and corporate tax deregistration
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What is included

What the liquidation covers.

Everything needed to close the company, in the order the authorities expect it.

  • Resolution and appointment

    Shareholders’ resolution to dissolve the company and appoint the liquidator, notarised where the authority requires it.

  • Creditor notice

    The liquidation notice published as the authority requires, and creditor claims handled within the notice period.

  • Liquidator’s report

    Final financial statements and the liquidator’s report the authority asks for before it cancels the licence.

  • Clearances

    Employee visas, labour cards and the establishment card cancelled, with lease, utility, customs and bank clearances.

  • Licence cancellation

    The cancellation application filed with the mainland authority or free zone, and the cancellation document obtained.

  • Tax deregistration

    VAT deregistration and final VAT return, and corporate tax deregistration with the Federal Tax Authority.

Free zone liquidation

Closing a company by free zone.

Each free zone runs its own deregistration process. Pick yours to see the steps.

Free zone Emirate Closing a company
DMCCDubai Multi Commodities Centre Dubai How to liquidate a DMCC company
JAFZAJebel Ali Free Zone Dubai How to liquidate a JAFZA company
DAFZDubai Airport Free Zone Dubai How to liquidate a DAFZ company
DSODubai Silicon Oasis Dubai How to liquidate a DSO company
DWCDubai World Central (Dubai South) Dubai How to liquidate a DWC company
IFZAInternational Free Zone Authority Dubai How to liquidate an IFZA company
MeydanMeydan Free Zone Dubai How to liquidate a Meydan company
RAKEZRas Al Khaimah Economic Zone Ras Al Khaimah How to liquidate a RAKEZ company
AFZAjman Free Zone Ajman How to liquidate an AFZ company
HFZAHamriyah Free Zone Authority Sharjah How to liquidate an HFZA company
SAIF ZoneSharjah Airport International Free Zone Sharjah How to liquidate a SAIF Zone company
SPCSharjah Publishing City Free Zone Sharjah How to liquidate an SPC company
SHAMSSharjah Media City Sharjah How to liquidate a SHAMS company
SRTIPSharjah Research, Technology and Innovation Park Sharjah How to liquidate an SRTIP company
USARTCU.S.A. Regional Trade Center Free Zone Sharjah How to liquidate a USARTC company

Good to know

The deadlines that catch owners out.

Set by the Federal Tax Authority and the licensing authorities. Missing them adds fines to a company you are trying to close.

  • 45 days for creditors

    On the Dubai mainland, creditors have 45 days after the newspaper notice to submit their claims.

  • 30 business days for VAT

    A VAT deregistration application is due within 30 business days of the obligation arising, with the final return within 28 days.

  • 3 months for corporate tax

    A company must apply to deregister for corporate tax within 3 months of its dissolution or liquidation.

  • Fines for late deregistration

    Late VAT or corporate tax deregistration is fined AED 1,000, then monthly, up to AED 10,000 for each tax.

Business owners and advisors reviewing documents around a meeting table

Getting started

What we need to get started.

We tell you exactly which of these your authority asks for.

  • Trade licence, memorandum of association and share register
  • Passports and Emirates IDs of shareholders and managers
  • Latest financial statements and bank statements
  • Employee list with visa and labour card details
  • Lease agreement and utility account numbers
  • VAT and corporate tax registration details
  • Any customs code, permits or regulator approvals

The process

How a voluntary liquidation runs.

  1. Resolution and liquidator

    Shareholders resolve to dissolve the company and appoint the liquidator. We prepare the documents for your authority.

    Week 1
  2. Notice to creditors

    The notice is published. Creditors have 45 days on the Dubai mainland and 14 days at DMCC.

    14 to 45 days
  3. Clearances

    Visas, labour cards and the establishment card cancelled, with lease, utility, customs and bank clearances.

    In parallel
  4. Report and cancellation

    Final accounts and the liquidator’s report submitted, and the licence cancelled.

    After the notice period
  5. Tax deregistration

    VAT and corporate tax deregistration with the Federal Tax Authority, with the final returns filed.

    Within 3 months

Company liquidation FAQ

Questions about company liquidation.

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Have a question about your own company? An advisor replies the same working day.

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How long does company liquidation take in Dubai?

On the Dubai mainland the creditor notice period alone is 45 days, so most voluntary liquidations take two to four months from the resolution to the cancelled licence. Free zones vary: JAFZA states 21 working days to process a termination, and DMCC aims to complete a summary winding up within 6 months.

Who can act as liquidator of a Dubai mainland company?

The liquidator submits a letter accepting the role together with its licence and auditor registration certificate, so in practice it is a registered auditing firm.

Is a newspaper notice required?

On the Dubai mainland, yes: the notice runs in two local Arabic newspapers, and creditors have 45 days to submit claims. Free zones differ. DMCC publishes the notice itself for 14 calendar days, and JAFZA publishes the newspaper notice on the company’s behalf.

What happens if I just let the trade licence expire?

The company is not closed. Non-renewal fines keep building, and the company stays registered for VAT and corporate tax with filing obligations. On the Dubai mainland, a licence that has been expired for more than two years needs an undertaking from the local partner for the company’s debts before it can be cancelled.

Do I need to deregister for VAT and corporate tax?

Yes. A VAT deregistration application is due within 30 business days of the obligation arising, with the final return and payment within 28 days of deregistration. For corporate tax, the company must apply within 3 months of its dissolution or liquidation, with its licence cancellation document and final financial statements.

Can a free zone company be liquidated if it has debts?

It depends on the free zone. DMCC, for example, allows an insolvent voluntary winding up, in which creditors appoint a committee to oversee the liquidator. We look at the balance sheet first and tell you which route applies.

Can the liquidation be done without me being in the UAE?

Much of it can, through a power of attorney and our team. Some steps need a shareholder or manager in person, for example JAFZA asks the owner to sign the deregistration form in person. We tell you up front which steps need you.

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