UAE is always focused on building a robust business infrastructure to support business and drive economic growth.

Expats from all over the world continue to move to Dubai for a better life and better opportunities. There are immense opportunities in Dubai for business setup and to operate a successful business.

However, in the event of closing down your business or closing down and reopening a new business, etc., there are a few documentations, paperwork and legal proceedings to be initiated. It is to ensure the smooth closing of your establishment and not record any fines or late fees.

As closing the business in Dubai requires a lot of processes, documentation, attestations, and approvals from Government Authorities, it is best to initiate the closing of business in Dubai by taking the assistance of a well experienced Business Consultants to save time and effort.

Our expert team at UAE21 Business Consultants will hand hold you throughout the company liquidation process to ensure you have a hassle-free company liquidation in Dubai.

The basic steps for closing down all types of legal forms of business in Dubai are almost the same with few variations depending on the type of business and the business jurisdictions – Mainland, Freezone, Offshore.

• Fill in the Registration & Licensing Application form through approved channels.
• Submit the Trade License Copy
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Collect business-activity specific approvals
• Submit the above documents via the approved channels and collect the License Cancellation Certificate.

• Fill in the Registration & Licensing Application form via the approved channels.
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Submit an attested decision issued by the parent company to cancel the branch.
• Collect business activity-specific approval (if required)
• Approval from the Ministry of Economy to cancel the foreign company branch
• Submission of documents via the approved channels and collect the License Cancellation Certificate

• Fill in the Registration & Licensing Application form via the approved channels.
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Cancel the foreign partners’ visas sponsored by the company
• Collect business activity-specific approval (if required)
• Prepare a Partnership Cancellation Contract authenticated by a notary public or any of the state’s court.
• Submit the above documents through approved channels and collect License Cancellation Certificate.

Closing a Business in a Freezones

Dissolve a company and appoint a liquidator in Dubai

• Prepare notarized minutes of the Shareholder’s meeting to confirm the company liquidation. Also, include the notice of appointment of a liquidator.
• Prepare a letter issued by the liquidator accepting to liquidate the company along with the liquidator’s credentials (Business license copy, auditor’s registration certificate, a notarized signature)
• Fill in the Registration and Licensing Application form and submit the above documents through the approved channels.
• A legal advisor in DED will review the documents and approve the company dissolution documents and liquidator’s appointment
• A payment voucher will be issued for company dissolution and liquidator appointment. Post payment of the fees the company dissolution documents will be issued to the company.
• Publish a notice of liquidation in two Arabic Local Newspapers for one day, the notice should give the public a period of 45 days to submit any claims or complaints.

Closing a Business in a Freezones

Remove a Company from the Register in Dubai

• Prepare the company’s final report
• Prepare a declaration letter from the liquidator and the partners indicating that no objection from any other parties during 45-days of dissolution announcement.
• Cancel the establish card at Ministry of Human Resource and Emiratisation
• Cancel the foreign partners; visa sponsored by the company.
• Collect business activity-specific approvals (if required)
• Obtain the Ministry of Economy’s decision to cancel the company’s License (for private shareholding companies)
• Obtain the Securities and Commodities Authority decision to cancel the company’s License (for public shareholding companies)
• Submit all the above documents along with Phase-1 documents through approved channels and get the approval of DED legal advisor.
• You will be issued with a payment voucher to pay the deregistration fees. Post-payment the certificate of deregistration will be issued to the company.

Closing a Business in a Freezones

When do you require a Liquidator for cancelling your Business License?

Closing a Business in a Freezones

Why Cancelling the License is a requirement upon closing of business in UAE?

The government authorities must be well informed that you are no longer in the business to avoid any accumulated fines and penalties on your existing license. Active Trade Licenses are to be renewed every year and defaulting that will yield fines.

For shareholding company, it is important to settle the liabilities with creditors, partners, and other stakeholders. It also helps in maintaining your goodwill, business reputation, and credibility if you want to start fresh by opening a new business.