UAE Free Zone Company Exit — How to Wind Down or Liquidate 2026
Sometimes businesses close. Here is the 2026 guide on how to properly liquidate or wind down a UAE free zone company, including the process for visa cancellation, bank closure, and licence surrender.
In this guide:
UAE Free Zone Company Closure Process Overview
- Cancel all UAE visas sponsored by the company
- Close UAE business bank account and withdraw funds
- Clear all company debts and liabilities
- File UAE CT return for the final tax period (if registered for CT)
- Deregister from UAE VAT (if registered)
- Submit company liquidation application to the free zone
- Free zone issues closure certificate (Letter of Abandonment or Dissolution Certificate)
Step 1: Cancel All UAE Visas
- All residence visas sponsored by the company must be cancelled BEFORE the company can be closed
- Visa cancellation: Through the free zone portal or in-person; requires passport and Emirates ID submission
- Visa holders must exit UAE or transfer to another sponsor within the grace period (usually 30 days)
Step 2: Close UAE Bank Account
- Contact your UAE bank to close the business account
- Bank may require: Company closure letter or authority letter; director signature in some cases
- Withdraw all remaining funds; transfer to personal account or foreign account
Step 3: UAE CT and VAT Deregistration
- UAE CT: File final CT return; inform FTA of business cessation; request deregistration
- UAE VAT: Submit final VAT return; apply for VAT deregistration on EmaraTax
Step 4: Free Zone Liquidation
- Submit liquidation form to your free zone authority
- Some free zones require an auditor-signed liquidation report
- Typical timeline: 1-3 months from application
- Cost: AED 1,500-5,000 depending on free zone