Closing a UAE free zone company (licence cancellation) requires settling all obligations, cancelling employee visas, and following the free zone’s deregistration process. Here is the complete guide.
Step 1: Cancel All Employee Visas
Before cancelling the trade licence, cancel all sponsored residence visas (employees, partners, dependents). The free zone authority will not process a licence cancellation while sponsored visas remain active. Each visa cancellation: apply through the free zone authority or typing centre; cancel the Establishment Card entry for each person; allow 3–5 business days per visa cancellation. The visa holder has a grace period (typically 30 days) to leave the UAE or transfer to a new sponsor after cancellation.
Step 2: Close the UAE Bank Account
Notify your UAE bank in writing that you are closing the company. Withdraw remaining balances and settle any outstanding fees, credit card balances, or loan obligations. Request a bank closure letter confirming the account is closed — some free zones require this as part of the deregistration.
Step 3: File Final Tax Returns (If Required)
If your company is registered for UAE Corporate Tax and/or VAT, file a final tax return for the period up to the licence cancellation date and apply for CT/VAT deregistration through EmaraTax. VAT deregistration can take 20+ working days — factor this into your closure timeline.
Step 4: Apply for Licence Cancellation
Submit the licence cancellation application to the free zone authority: completed cancellation form, all original documents (licence certificate, Establishment Card, certificates of incorporation), confirmation of bank account closure, and any outstanding fees paid. Free zone cancellation processing: 5–15 working days. The free zone issues a deregistration certificate confirming the company is officially dissolved.
Post-Cancellation
Retain all company records for at least 5 years after cancellation (required by UAE Commercial Companies Law). Notify MOHRE and FTA of the closure. Retain your final CT return and deregistration certificates permanently in case of future tax authority queries.