Company Liquidation in Meydan Free Zone (MFZ) - The Capital Zone Liquidators

Company liquidation in Meydan Free Zone is a formal legal process where a business entity closes its operations, settles its liabilities, and cancels its trade license with the Meydan Free Zone Authority (MFZA).

This process ensures that all outstanding obligations, including payments, taxes, and visa cancellations, are fully completed before the company’s name is removed from the official trade register.

Meydan Free Zone (MFZ), located in the heart of Dubai, is a prestigious business hub designed for entrepreneurs and global investors. It offers a 100% ownership structure, zero corporate tax, and a strategic location near Downtown Dubai, making it ideal for startups, consultants, and e-commerce ventures.
However, when businesses in Meydan Free Zone decide to cease operations whether due to restructuring, financial challenges, or a change in strategy they must undergo a formal company liquidation process to ensure full legal compliance.

The Capital Zone Liquidators assist companies in navigating this process seamlessly from visa cancellations to final audit reports ensuring a professional, transparent, and penalty-free closure.

Types of Company Liquidation in Meydan Free Zone

Voluntary Liquidation

Initiated by shareholders when they choose to close the company for strategic or financial reasons, even if it is solvent.

Involuntary Liquidation:

Occurs when a company fails to meet its financial or legal obligations, prompting creditors or authorities to enforce closure.

Compulsory Liquidation:

Ordered by a court due to insolvency or severe non-compliance with UAE or MFZA regulations.

Step-by-Step Process of Company Liquidation in MFZ

Step 1: Board Resolution for Liquidation

- The shareholders pass a board resolution confirming the company’s decision to liquidate and appointing a licensed liquidator (if required).
- The resolution must be signed and submitted to the Meydan Free Zone Authority.

Step 2: Appointment of a Licensed Liquidator

- A liquidator approved by MFZA must be appointed to oversee the liquidation process.
- For inactive companies, a “non-activity declaration” may suffice instead of a liquidation report.

Step 3: Submission of Liquidation Application

- Submit the liquidation request via the Meydan Free Zone digital portal, along with all initial supporting documents.

Step 4: Visa and Establishment Card Cancellation

- Cancel all employee and investor visas through the General Directorate of Residency and Foreigners Affairs (GDRFA) and return the establishment card.

Step 5: Settle Liabilities and Clearances

- Pay all outstanding dues to the Meydan Free Zone Authority, landlords, telecom companies, DEWA, and banks.
- Obtain clearance from each department confirming no pending obligations.

Step 6: VAT Deregistration (If Applicable)

- If the company is VAT-registered, apply for VAT deregistration with the Federal Tax Authority (FTA) and submit the clearance certificate to MFZA.

Step 7: Publish Notice of Liquidation

- Announce the liquidation in two local newspapers (one in English, one in Arabic).
- Creditors are given 45 days to raise any claims.

Step 8: Submit Final Liquidation Report

- The liquidator prepares and submits the final audit report and all clearance certificates to MFZA for review.

Step 9: License Cancellation & Company Deregistration

- Once all verifications are complete, MFZA issues the official license cancellation certificate, marking the legal closure of the business.

Step 10: Close Corporate Bank Accounts

- Use the license cancellation certificate to close all company bank accounts and secure confirmation letters.

Key Departments & Stakeholders Involved

Meydan Free Zone Authority (MFZA): Main regulatory authority managing liquidation approvals.
Federal Tax Authority (FTA): For VAT deregistration and tax clearance.
General Directorate of Residency & Foreigners Affairs (GDRFA): For visa cancellations.
Ministry of Human Resources & Emiratisation (MOHRE): For employee offboarding and labour card cancellations.
Dubai Electricity & Water Authority (DEWA): For utility clearance.
Telecom Providers (Etisalat / Du): For service termination.
Commercial Banks: For account closures and financial settlement.
Auditor/Liquidator: For preparing the final liquidation report.

Original Trade License and Certificate of Incorporation
Board Resolution signed by shareholders approving liquidation
Liquidator’s Appointment Letter (if applicable)
Liquidation Report or Non-Activity Certificate
Lease Termination Confirmation from Meydan Authority
Passport and Emirates ID copies of shareholders and directors
Visa Cancellation Letters (from GDRFA)
VAT Deregistration Certificate (if applicable)
Bank Account Closure Letter
NOCs from all relevant departments and service providers

Common Challenges During Meydan Company Liquidation

Delays in VAT deregistration or pending tax issues.
Unsettled utility or lease dues delaying clearance.
Failure to cancel visas properly, causing penalties.
Expired licenses or unpaid fines leading to additional renewal costs.
Incomplete liquidation reports from unauthorized auditors.

Engaging a professional liquidator like The Capital Zone ensures these issues are resolved efficiently.

The liquidation process in Meydan Free Zone typically takes 30 to 60 days, depending on the company’s size, activity level, and clearance duration.

Estimated Costs:

Government and authority fees: AED 3,000 – AED 6,000
Liquidator’s professional fee: AED 2,000 – AED 5,000+
Newspaper publication: AED 500 – AED 1,000
Additional clearances: Variable (based on utilities, visa counts, and tax deregistration)

Total estimated cost: AED 6,000 to AED 15,000+, depending on company complexity.

Note: Costs are approximate and may vary depending on company structure, activity, and pending dues.

The Capital Zone Liquidators

Why Choose Our Services?

The Capital Zone specializes in end-to-end company liquidation services in Meydan Free Zone. Our experienced team ensures complete compliance with MFZA regulations by managing:

Visa and labour card cancellations.
Coordination with all government departments (FTA, DEWA, MOHRE, etc.).
Preparation and submission of liquidation reports.
VAT deregistration and final audit clearance.
License cancellation and deregistration.

We simplify the entire process, saving your time, avoiding penalties, and ensuring a smooth business exit.

Frequently
Asked Questions

Is appointing a liquidator mandatory in Meydan Free Zone?

Not always. For active companies, a licensed liquidator is required; for dormant or non-trading companies, a non-activity statement may suffice.

How long does Meydan company liquidation take?

Generally between 1 to 2 months, depending on pending clearances and company size.

Can I liquidate the company remotely?

Yes, with digital signatures and authorized representatives, most procedures can be handled remotely.

What happens if I don’t liquidate properly?

Failure to officially liquidate can result in fines, blacklisting, and restrictions on opening new companies or visas.

What is the cost to liquidate a company in Meydan Free Zone?

The total cost ranges between AED 6,000 – 15,000, depending on business type, size, and required clearances.

How can The Capital Zone assist?

We handle the complete liquidation process, ensuring all legal, financial, and regulatory steps are finalized without complications.

Start Your Business in Meydan Free Zone with The Capital Zone

Meydan Company Formation

Launch your business in Dubai with a smart, flexible, and cost-effective Free Zone.
The Capital Zone offers complete support for Meydan Free Zone company formation, ideal for startups, entrepreneurs, and international businesses.

Why Choose Meydan Free Zone?

100% foreign ownership
Competitive setup and license packages
Wide range of approved business activities
No requirement for physical office space
Fast company registration and renewals

Our Meydan Free Zone Company Formation Services

Meydan Company Registration & Licensing
Commercial, Professional & E-commerce Licenses
Visa Processing for Owners & Employees
Corporate Bank Account Assistance
PRO & Ongoing Compliance Support

Why The Capital Zone?

Expert Meydan Free Zone consultants
Clear pricing with no hidden fees
End-to-end documentation & approvals
Fast setup with smooth coordination
Reliable post-setup & compliance support

Talk to our experts today and get your business licensed without delays.