Closing a UAE free zone company requires following a specific process. Here is the step-by-step closure checklist for 2026.
In this guide:
Reasons to Close a UAE Free Zone Company
- Business is no longer operating: No revenue; cost of maintaining company is not justified
- Relocating business: Moving to mainland UAE or another country
- Change of business structure: Merging into another entity
- Retirement or personal reasons
Company Closure Checklist
- Cancel all employee and investor visas: Visas must be cancelled BEFORE company can be deregistered
- Cancel UAE ID (Emirates ID): Linked to visa; cancelled when visa is cancelled
- Close UAE bank account: Bank will require board resolution and closure request; process takes 2-4 weeks
- File final UAE VAT return (if VAT registered): File final return and de-register from VAT
- File final CT return (if applicable): Ensure all CT obligations settled
- Pay all outstanding fees to free zone: Any unpaid licence fees, fines, or penalties
- Submit deregistration application to free zone: With required documents
- Receive deregistration confirmation: Free zone issues a deregistration certificate
Timeline for Company Closure
- Visa cancellation: 2-5 working days
- Bank account closure: 2-4 weeks (some banks take longer)
- Free zone deregistration: 2-4 weeks after all fees cleared
- Total process: Allow 4-8 weeks from decision to full closure
Costs of Company Closure
- Visa cancellation fees: AED 100-300 per visa
- Deregistration application fee: AED 1,000-5,000 depending on free zone
- Outstanding licence fees: Any unpaid renewal or other fees