Closing a UAE company (deregistration/liquidation) requires a formal process with the relevant authority. Here is a step-by-step guide to closing a UAE company properly in 2025.
Why Proper Closure Matters
Abandoning a UAE company without proper closure can result in: accumulating annual licence renewal fees that build into legal debts, UAE visa ban (if the company held your investor visa), travel ban (if unpaid debts exceed thresholds), credit record damage, and inability to open a new UAE company while the old one remains active (some authorities check this). Always close a UAE company through the official process rather than simply abandoning it.
UAE Mainland Company Closure Process
Step 1: Resolve all outstanding obligations. Cancel employee visas (MOHRE), pay outstanding licence fees, settle any Ejari or office lease, resolve any outstanding court judgments or creditor claims. Step 2: Appoint a liquidator (for LLCs with audited accounts — formally required). Individual professional licence holders: no liquidator required. Step 3: Publish a dissolution notice in two UAE newspapers (45 days for creditors to file claims). Step 4: Submit closure application to the DED with supporting documents. Step 5: Obtain the deregistration certificate. Total time: 2–4 months for a smooth LLC closure. Cost: AED 3,000–8,000 in government fees + liquidator fees if applicable.
Free Zone Company Closure
Each free zone has its own closure process. General steps: cancel all visas (via the free zone authority), obtain a “no objection” from the free zone (no outstanding fees), submit a deregistration form, pay the deregistration fee (AED 500–3,000). Time: 1–4 weeks for most free zones. Free zone closures are generally faster and simpler than mainland closures — this is one advantage of the free zone structure for entrepreneurs who may want a quick exit.