BUSINESS SETUP · EXIT

Closing a UAE company properly

Opening takes days. Closing takes months, and the cost of doing it badly is not a fine. It is a violations register entry that blocks every government transaction you make afterwards.

Talk to us about a closure Three-year cost model

THE PROCESS

Seven steps, in order.

Appoint a licensed liquidator

Required for most structures. The liquidator issues the acceptance letter the registrar needs.

Pass and notarise a shareholder resolution

The resolution to dissolve, notarised, and translated where the shareholders are foreign entities.

Publish a newspaper notice

A creditor notice with a 45-day objection period. The clock on the whole closure runs from here.

Cancel visas and the establishment card

Every residence visa under the company, then the establishment or immigration card itself.

Obtain clearances

Utilities, telecoms, customs, the landlord or free zone authority, and the bank account closure letter.

Deregister for VAT and corporate tax

Both are separate deregistrations with their own deadlines and their own penalties for missing them.

Receive the liquidation certificate

The only document that proves the company is actually closed. Keep it permanently.

Timeline roughly 45 to 60 days for a free zone company, two to three months for a mainland LLC.

COST

What a clean closure costs.

Line	Indicative amount	Note
Licensed liquidator	AED 5,000 to 15,000	Scope depends on assets, staff and whether there are creditors
Newspaper notice	AED 1,500 to 2,500	Mandatory creditor publication, 45-day period
Free zone closure, total	From around AED 5,000	Zone-dependent, before visa cancellation costs
Mainland LLC closure, total	AED 10,000 to 25,000	Includes clearances and notarisation

All figures Indicative. Free zones change pricing frequently and run promotions. Confirm the current schedule before committing. Figures marked Indicative come from registered agents and consultancies and must be verified against the zone's current schedule.

Last updated 13 August 2026 Next review Q4 2026

THE PART THAT MATTERS

What happens if you simply stop renewing.

Fines start quickly

Roughly a 30-day grace on the mainland, then fines from about AED 250 a month accumulating past AED 5,000. Some zones, DMCC among them, offer no grace at all.

The violations register

Prolonged non-renewal places the company and its director on the register, blocking all government transactions and any new company registration in that emirate.

Visas and travel

Existing visas can be revoked, with travel ban and deportation risk for owners and managers. This is the consequence people do not price in.

Banking and filings

Banks freeze accounts on an expired licence. A dormant company still owes corporate tax filing and licence renewal until it is formally deregistered.

QUESTIONS

Asked at the exit.

Can I just let the licence lapse?

No. Roughly a 30-day grace applies on the mainland, then fines from about AED 250 a month accumulating past AED 5,000, with some zones such as DMCC offering no grace at all. Prolonged non-renewal places the company and its director on the violations register.

What does the violations register actually block?

All government transactions and any new company registration in that emirate. Existing visas can be revoked, with travel ban and deportation risk for owners and managers.

My company never traded. Do I still have to close it?

Yes. A dormant company still owes corporate tax filing and licence renewal until it is formally deregistered. A zero-revenue company still has to be closed properly.

How long does it take?

Roughly 45 to 60 days for a free zone company and two to three months for a mainland LLC, mostly governed by the 45-day creditor notice period.

GO DEEPER

Close it properly, once.

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