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
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
What is included
What the liquidation covers.
Everything needed to close the company, in the order the authorities expect it.
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Resolution and appointment
Shareholders’ resolution to dissolve the company and appoint the liquidator, notarised where the authority requires it.
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Creditor notice
The liquidation notice published as the authority requires, and creditor claims handled within the notice period.
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Liquidator’s report
Final financial statements and the liquidator’s report the authority asks for before it cancels the licence.
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Clearances
Employee visas, labour cards and the establishment card cancelled, with lease, utility, customs and bank clearances.
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Licence cancellation
The cancellation application filed with the mainland authority or free zone, and the cancellation document obtained.
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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.
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45 days for creditors
On the Dubai mainland, creditors have 45 days after the newspaper notice to submit their claims.
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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.
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3 months for corporate tax
A company must apply to deregister for corporate tax within 3 months of its dissolution or liquidation.
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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.
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.
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Resolution and liquidator
Shareholders resolve to dissolve the company and appoint the liquidator. We prepare the documents for your authority.
Week 1 -
Notice to creditors
The notice is published. Creditors have 45 days on the Dubai mainland and 14 days at DMCC.
14 to 45 days -
Clearances
Visas, labour cards and the establishment card cancelled, with lease, utility, customs and bank clearances.
In parallel -
Report and cancellation
Final accounts and the liquidator’s report submitted, and the licence cancelled.
After the notice period -
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.
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.
Related services
Often needed alongside this.
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ServiceAudit & assurance
Statutory, internal and free zone audits carried out to International Standards on Auditing, with a signed report your bank, free zone and the FTA will accept.
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ServiceCorporate tax & VAT
Registration, returns and advisory for UAE corporate tax, VAT and Pillar Two, so every filing reaches the Federal Tax Authority correct and on time.
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ServicePRO services
Visas, Emirates ID, licence renewals, attestations and government approvals handled for you, without the queue.
Free consultation
Tell us what is due. We will tell you what it takes.
Send a few details and an advisor will call you back within one working day with next steps and a fixed quote. No obligation.
- Call+971 52 202 3984
- WhatsAppChat with an advisor
- Emailadvisor@ashfordmc.com
- OfficeAl Shafar Investment Building 121, Al Quoz Industrial Area 1, Dubai
- HoursSaturday to Thursday, 9:00 AM to 6:00 PM
