Closing a Company in UAE: Process Fees Timeline

Quick answer

Closing a company in the UAE requires cancellation of your trade licence, settlement of all dues with government authorities, and removal from the federal and emirate registers. The process takes 2-4 months and costs AED 3,000-10,000 per entity depending on the jurisdiction and number of visas cancelled. You must settle any outstanding fines, employee end-of-service gratuity, and lease termination penalties before authorities will approve cancellation.

Step-by-step process

Obtain board resolution approving closure and appoint a liquidator if required by your free zone or mainland authority. Submit the resolution along with the original trade licence, passport copies of shareholders and managers, and visa copies to the licensing body.

Mainland companies

Submit documents to the Department of Economic Development (DED) in your emirate. DED will issue a no-objection certificate only after you show proof of settlement with the Ministry of Human Resources and Emiratisation (MOHRE), Federal Tax Authority (FTA), and your municipality.

Free zone companies

Submit documents to the free zone authority first. Most free zones require internal clearance from their own immigration, customs, and finance departments before issuing a final cancellation letter.

Offshore companies

Submit closure request to the offshore company formation agent or the register keeper such as RAK ICC or JAFZA Offshore. Offshore roles usually require fewer steps but still demand tax clearance letters.

Fees and costs

Trade licence cancellation fee ranges from AED 1,000-3,000. Visa cancellation costs AED 300-500 per person. Liquidator fees if required are AED 5,000-15,000. MOHRE labour card cancellation is AED 100-150. FTA tax deregistration fee is free but any outstanding VAT or corporate tax must be paid.

Timeline breakdown

Board resolution and document preparation takes 1-2 weeks. Authority approval takes 3-6 weeks once all no-objection certificates arrive. Tax and labour clearance takes 4-8 weeks. Final removal from registers occurs after all dues are settled.

Common mistakes to avoid

Leaving employees on the company payroll after the company is closed leaves fines of AED 500 per day per visa. Failing to submit VAT final return triggers penalties of 5% interest per month on any remaining tax. Failing to terminate lease properly gives the landlord claim for full year rent even after company closure.

Post-closure obligations

After trade licence is cancelled, keep records for 5 years for tax purposes. If you plan to open a new company later, any outstanding fines will block new licence issuance. Check your personal Emirates ID status as it may need renewal independently.

FAQs

How long does it take to cancel a visa after company closure?

Once the trade licence is cancelled, visas must be cancelled or transferred within 60 days or fines begin at AED 50 per day per employee.

Can I close a company remotely?

Most authorities accept digital submissions through portals such as Amer or Tawtheeq, but shareholders must still sign documents in person or via power of attorney.

Is there a minimum capital requirement during closure?

No, you cannot withdraw capital until all liabilities are settled and the company is fully cancelled.

Does company closure affect my Golden Visa?

Golden Visas issued through a company remain valid until their original expiry date even after company cancellation.

Can I reopen the company after closure?

Yes, you can reapply for a new licence, but any previous fines must be paid before new applications are accepted.

Got more UAE questions?

Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →