Company liquidation in the UAE
Closing a company properly means more than cancelling the licence. Creditors, employees, visas, bank accounts and tax registrations all need to be closed in the right order. We plan the closure with you and follow it through.
How a UAE company is wound up
- Decision to dissolve. The partners or general assembly resolve to dissolve the company and appoint a liquidator. The company then adds "under liquidation" to its name.
- Registration and notice. The dissolution and the liquidator's appointment are entered in the commercial register and published in two local daily newspapers, one in Arabic.
- Creditors. Creditors are notified and given at least 30 days to submit claims (45 days in the Dubai mainland notice).
- Settlement. The liquidator collects assets, pays debts — liquidation costs first — and prepares interim accounts every three months while the liquidation runs.
- Final accounts. The final account is approved, the remaining assets are distributed to the partners, and the company is removed from the register.
Dubai mainland: the Department of Economy and Tourism (DET) steps
- Notarised general assembly minutes approving liquidation and appointing the liquidator, with the liquidator's acceptance letter, licence and auditor registration certificate.
- A certificate of dissolution and liquidator appointment.
- A liquidation notice in two Arabic local newspapers, giving 45 days for claims.
- After 45 days, a no-objection declaration from the liquidator and partners, the final report and the newspaper notices.
- Cancellation of labour cards with the Ministry of Human Resources and Emiratisation (MOHRE), then cancellation of the trade licence.
Free zone companies
Each free zone runs its own winding-up procedure. As an example, the Dubai Multi Commodities Centre (DMCC) offers summary, solvent and insolvent voluntary winding-up, publishes a notice for 14 days, and issues a termination letter once the final liquidation report is filed. In general, all visas must be cancelled and liabilities settled before the free zone issues its final deregistration certificate.
Close everything else, in the right order
- Employees and visas: labour contracts and residence visas cancelled, then the establishment card — which can generally be cancelled only after every residence visa on it has been cancelled or transferred.
- VAT: a deregistration application within 20 business days of stopping taxable supplies, with a final VAT return.
- Corporate Tax: deregistration within three months of the business ceasing, with all returns filed and tax paid. The FTA asks for the licence cancellation document, so this step usually follows the licence cancellation — we sequence the two with you.
- Leases and contracts ended or transferred. Keep the bank account open until final debts, tax payments and distributions are made, then close it.
A cancelled licence does not close the tax file. Our tax & accounting team at pbz.ae prepares the books and final-period financial statements for the liquidator's review, the final returns, and the VAT and Corporate Tax deregistration applications — see VAT and Corporate Tax deregistration.
How we help
We map the full closure timeline with you, coordinate with a registered liquidator, prepare the resolutions and notices, handle visa and establishment card cancellations, and follow the file through to licence cancellation — with the tax side coordinated in parallel so open items are identified early. Approvals are always decided by the authorities.
Sources: Federal Decree-Law No. 32 of 2021 on Commercial Companies, as amended (Articles 21, 302, 312–313, 316, 318, 324–330 and 333); Dubai Digital Authority — Closing your business (April 2026); DET — Request for cancellation of trade licence; DMCC — Guidance Notes: Company Winding-Up and Removal of Branches (Version 4, May 2026); u.ae — Closing a business in a free zone (April 2026); GDRFA Dubai — establishment card and residence cancellation services; Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, as amended (Article 52), and FTA Decision No. 6 of 2023; Federal Decree-Law No. 8 of 2017 on VAT, as amended (Article 21), and its Executive Regulation (Article 14); Cabinet Decision No. 75 of 2023 and Cabinet Decision No. 40 of 2017, as amended.
Closure in four steps
Plan
We check debts, staff, visas, contracts and tax filings.
Liquidation
Resolution, liquidator, notices and creditor period.
Cancellations
Visas, establishment card and VAT registration.
Licence & tax
Final accounts approved, licence cancelled, Corporate Tax deregistered.
Frequently asked questions
What is the difference between liquidation and licence cancellation?
Liquidation is the company-law process of winding up — appointing a liquidator, notifying creditors, settling debts and approving final accounts. Licence cancellation is the last step with the licensing authority. VAT and Corporate Tax deregistration are separate applications to the Federal Tax Authority.
Who can act as liquidator?
Under the Commercial Companies Law, the liquidator is appointed by the partners or general assembly and cannot be the company's current auditor or anyone who audited it in the previous five years. In Dubai, the Department of Economy and Tourism (DET) asks for the liquidator's licence and auditor registration certificate with the liquidator's acceptance letter.
How long does a liquidation take?
The law requires creditors to be given at least 30 days to submit claims; on the Dubai mainland the published notice gives 45 days. After that come the final accounts, clearances and licence cancellation. Visas, employees and tax registrations must also be closed, so a realistic plan usually runs over several months.
Do I have to deregister from Corporate Tax?
Yes, once the business ceases. A deregistration application is due within three months, and the Federal Tax Authority (FTA) will not deregister until all returns are filed and tax and penalties are paid. Late deregistration carries penalties for both Corporate Tax and VAT.
Can a company with debts be closed this way?
A voluntary liquidation assumes the company can pay its debts. If it cannot, different rules apply, including insolvency procedures. We review the position first and, if the company may be insolvent, refer you to a licensed insolvency practitioner or lawyer.
Planning to close a company?
Tell us where the company is licensed and what is still open. We'll map the closure in a short online meeting and send a written quote.