How to Close a UAE Company — Deregistration and Liquidation Guide 2026
Closing a UAE company requires following a specific process depending on whether the company is in a free zone or mainland. Failure to properly close a UAE company results in ongoing fees, bad records, and potential visa blacklisting. This guide covers how to close a UAE company in 2026.
In this guide:
Why Properly Closing a UAE Company Matters
- Ongoing fees: an active UAE company continues to accumulate licence renewal fees, visa fees, and audit fees even if dormant; a company you don’t properly close can accumulate AED 15,000-50,000/year in obligations
- UAE CT obligation: dormant companies with an active UAE trade licence are still required to file UAE Corporate Tax returns; failure is AED 10,000/month penalty
- Bank account complications: a closed company that still has an active UAE bank account may face compliance issues
- Blacklisting: in some free zones, unpaid fees at the time of abandonment can result in the shareholder being blacklisted from future UAE company registrations
UAE Free Zone Company Deregistration Process
- Board resolution: all shareholders pass a resolution to wind up the company; all shareholders must sign; notarisation may be required depending on the free zone
- Cancel all visas: all UAE residence visas sponsored by the company must be cancelled before deregistration; cancel investor and employee visas; visa cancellation takes 3-5 working days per visa
- Close UAE bank accounts: request bank account closure letter; obtain “nil balance” confirmation; submit to the free zone authority as proof
- Cancel trade licence: submit all documents to the free zone authority; online or in-person depending on free zone; pay any outstanding fees
- NOC from authorities: some free zones require NOC (No Objection Certificate) from Dubai Customs, immigration, and MoF (for CT registration cancellation)
- FTA (Federal Tax Authority) deregistration: cancel UAE CT registration via EmaraTax; cancel UAE VAT registration if registered; submit final CT return for the period up to closing date
UAE Mainland Company Liquidation Process
- Appoint liquidator: mainland company liquidation (for LLCs) requires an appointed liquidator (licensed liquidation company); the liquidator is responsible for settling all debts and distributing remaining assets
- Publish liquidation notice: the liquidation must be published in two UAE newspapers (Arabic and English); creditors have 45 days to file claims
- Settle debts: pay all outstanding creditors from company assets; if company is insolvent (cannot pay all debts), a court-supervised insolvency process applies instead
- DED licence cancellation: once liquidation is complete, submit to Dubai DED for licence cancellation; AED 1,000-3,000 cancellation fees
- MOA cancellation: the Memorandum of Association is formally cancelled by the relevant notary
Timeline to Close a UAE Company
- Free zone (no debts, all clear): 2-6 weeks; straightforward if all visas cancelled and bank accounts closed
- Mainland LLC with employees: 3-6 months; newspaper publication + creditor period + liquidation process
- Complex company (multiple shareholders, assets, liabilities): 6-18 months; requires liquidator and possibly court involvement