Step-by-Step Guide to UAE Company Liquidation in 2025

Your Roadmap to a Clean, Compliant Business Exit

Closing a company in the UAE requires more than just handing in your trade license. Whether you’re operating in the mainland or a free zone, liquidation involves legal approvals, government clearances, and financial settlements. This guide walks you through each step to ensure a smooth and compliant exit.

1. Shareholder or Board Resolution

The process begins with a formal resolution from shareholders or board members approving the company’s closure. This document must be notarized and submitted to the relevant authority.

2. Appoint a Licensed Liquidator

A certified liquidator is appointed to oversee the process, prepare reports, and ensure all legal obligations are met. This step is mandatory for mainland companies.

3. Submit Liquidation Request

The resolution and liquidator appointment are submitted to the Department of Economic Development (DED) or the Free Zone Authority to initiate the official liquidation process.

4. Newspaper Publication (Mainland Only)

A 45-day notice is published in two local newspapers to inform creditors and allow time for any claims. This step is not required for most Free Zone entities.

5. Cancel Visas & Labour Contracts

All employee visas and labor contracts must be cancelled through MOHRE and immigration. This includes termination of the company’s establishment card.

6. Obtain Government Clearances

Clearances must be secured from the Federal Tax Authority (FTA), utilities, customs, and labor departments to confirm there are no outstanding dues or liabilities.

7. Settle Debts & Employee Dues

Before final closure, all financial obligations—including supplier payments and staff end-of-service benefits—must be settled.

8. Submit Final Liquidator Report

The liquidator prepares and submits a final report confirming that all assets have been disposed of and liabilities cleared.

9. Final Deregistration & License Cancellation

Once all steps are complete, the company’s trade license is officially cancelled, and the business is removed from the commercial registry.

Why Choose The Capital Zone?

We handle every step—from documentation to deregistration—with speed, accuracy, and full regulatory compliance. Whether you’re closing a Free Zone startup or a mainland enterprise, our experts ensure a clean exit with zero loose ends.

Ready to begin your company liquidation?
Book a free consultation with The Capital Zone today.