Company Liquidation in Dubai Free Zones

Company Liquidation, Deregistration & Business Closure in UAE Free Zones

Company Liquidation in Free Zones. Closing a company in a UAE free zone requires following a clear and regulated process. Each free zone authority has its own liquidation and deregistration procedures, but the main goal remains the same to legally dissolve the company, settle all liabilities, and obtain the official License Cancellation Certificate.

Whether you’re exiting the market, restructuring, or simply finishing a project, proper company liquidation in UAE free zones is essential to avoid penalties, fines, or blacklisting.

Understanding Free Zone Company Liquidation

Company liquidation (also called company deregistration or winding up) is the formal legal process of closing a business entity. During liquidation, all company assets are sold, outstanding debts are paid, and any remaining balance is distributed to shareholders. Once the process is complete, the company’s trade license is canceled, and its name is removed from the Free Zone Commercial Register.

Liquidation ensures that your business is closed legally, transparently, and with full compliance with UAE free zone regulations.

Types of Company Liquidation in UAE Free Zones

Voluntary Liquidation

Initiated by shareholders when the company is solvent. The business has no outstanding debts and chooses to close legally. A liquidator is appointed to complete the process.
Voluntary Liquidation

Compulsory Liquidation

Initiated by court order when the company becomes insolvent or fails to meet obligations. Usually requested by creditors or due to regulatory violations.
Compulsory Liquidation

Most free zone entities in the UAE undergo voluntary liquidation, as it’s faster, more straightforward, and ensures compliance.

Step-by-Step Process for Free Zone Company Liquidation

Step 1: Pass a Resolution & Appoint a Liquidator

Shareholders must pass a board resolution approving the liquidation and appointing a licensed and approved liquidator recognized by the respective free zone authority.

Step 2: File the Deregistration Application

Submit the liquidation request to your free zone authority with supporting documents such as the trade license, certificate of incorporation, and MOA.

Step 3: Cancel Employee & Investor Visas

All employee, partner, and dependent visas must be canceled through GDRFA and MOHRE. The company establishment card must also be returned.

Step 4: Settle Liabilities & Obtain Clearances

Pay off debts, salaries, and supplier dues. Then obtain No Objection Certificates (NOCs) from:

  • Free Zone Authority (Finance & Leasing Department)
  • Utility providers (DEWA, SEWA, FEWA)
  • Telecom providers (Etisalat, Du)
  • Customs (if applicable)
  • Federal Tax Authority (VAT Deregistration)
  • Banks (account closure confirmation)

Step 5: Publish a Liquidation Notice (if required)

Some free zones require publishing a liquidation notice in two local newspapers (one in Arabic). Creditors are usually given 45 days to raise objections.

Step 6: Submit Final Audit or Liquidation Report

The appointed liquidator prepares the final liquidation report, confirming all liabilities are cleared and assets distributed.

Step 7: Obtain the License Cancellation & Deregistration Certificate

After reviewing all documents, the free zone authority issues the official License Cancellation Certificate, confirming the company’s deregistration.

Key Free Zones

The Capital Zone provides complete liquidation and deregistration services across all UAE Free Zones, including:

The Capital Zone provides complete liquidation and deregistration services across all UAE Free Zones, including:

  • Dubai (DMCC, DAFZA, DIFC, DWTC, Meydan, JAFZA, IFZA )
  • Sharjah (SPC, SHAMS, Hamriyah, SAIF Zone)
  • Ajman Free Zone
  • Ras Al Khaimah (RAKEZ)
  • Fujairah Free Zone

Each zone follows a slightly different procedure, but our experts handle every requirement efficiently.

Required Documents for Free Zone Liquidation

  • Trade License & Certificate of Incorporation
  • Memorandum and Articles of Association (MOA)
  • Shareholder Passport & Emirates ID copies
  • Board/Shareholder Resolution for Liquidation
  • Liquidator’s Appointment & Acceptance Letter
  • Final Audit or Liquidation Report
  • Visa Cancellation Proof
  • NOCs from Utilities, Telecom, and FTA
  • Bank Closure Letter
  • Proof of Newspaper Publication (if applicable)
Company Liquidation in Free Zones

Timeline & Cost of Free Zone Company Liquidation

Timeline: Typically takes 30–60 days depending on company size, number of employees, and pending clearances.

Cost: Usually ranges from AED 10,000 – AED 25,000+, depending on:

  • Free zone authority fees
  • Liquidator’s charges
  • Outstanding government fines or penalties
  • Visa cancellations and newspaper ads

Starting the process before license expiry can save extra renewal costs.

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

Why Proper Liquidation Matters

Completing the liquidation process properly ensures:

  • Avoidance of fines and legal penalties
  • Smooth visa and license cancellations
  • Clean corporate record for future ventures
  • Full compliance with UAE laws and Free Zone Authority requirements

Neglecting proper liquidation can lead to blacklisting, frozen bank accounts, or travel restrictions for shareholders.

The Capital Zone Liquidators

Why Choose Our Services?

At The Capital Zone, we manage your company liquidation in UAE free zones from start to finish. Our services include:

  • Preparing resolutions and documentation
  • Appointing and coordinating with licensed liquidators
  • Managing visa cancellations and government clearances
  • Liaising with banks, utilities, and authorities
  • Submitting final reports and obtaining deregistration certificates

With years of experience in free zone company deregistration, we ensure your business closure is fast, compliant, and stress-free.

Whether you’re closing a small startup or a large corporate entity, our liquidation experts will guide you every step of the way.

Contact The Capital Zone today to begin your free zone company deregistration in the UAE efficiently and lawfully.

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