Company Liquidation in RAKEZ Free Zone (Ras Al Khaimah Economic Zone)

Company liquidation in RAKEZ is the formal procedure to dissolve a company registered within the free zone.

It involves:

Settling all outstanding dues, debts, and employee payments.
Cancelling all visas, labor cards, and immigration files.
Returning the leased facility in good condition.
Submitting the required documents and clearances to RAKEZ.
Receiving the official License Cancellation Certificate, confirming the company’s deregistration from the RAKEZ registry.

Failure to liquidate properly can lead to:

AED 50 per day late deregistration fines.
AED 1,100 immigration closure penalties.
Possible blacklisting of shareholders or partners for future licenses.

Voluntary Liquidation

Initiated by shareholders or directors when the company is no longer required or has achieved its objectives.

Compulsory Liquidation

Enforced by authorities or courts due to non-compliance, insolvency, or outstanding liabilities.

RAKEZ Free Zone (Ras Al Khaimah Economic Zone)

Liquidating a company in Ras Al Khaimah Economic Zone (RAKEZ) is a regulated process that involves clearing all outstanding obligations, notifying authorities, and cancelling the trade license with the Free Zone Authority.

This ensures that your business is formally closed in compliance with UAE laws, preventing future fines, penalties, or liabilities.

Whether you are closing a Free Zone Establishment (FZE), Free Zone Company (FZ-LLC), or Branch, the liquidation process must follow official RAKEZ procedures and timelines.

Step-by-Step Process of Company Liquidation in RAKEZ Free Zone

Step 1: Resolution & Appointment of a Liquidator

A Board Resolution or Owner’s Declaration must be passed to approve the liquidation and appoint a licensed liquidator.
This resolution must be signed before RAKEZ, or notarized by a UAE notary public, or legalized up to the UAE Embassy if signed abroad.
The appointed liquidator issues a Letter of Acceptance confirming their role.

Step 2: Clearances and Settlements

Before deregistration, all dues and obligations must be cleared with:

RAKEZ Authority – All fines, rent, license fees, and service charges.
RAK Customs Department – For companies with warehouses, industrial plots, or imports/exports.
RAK Chamber of Commerce – (if applicable) for membership cancellation.
MOHRE (Labour) – Cancel labor cards and settle end-of-service benefits.
Immigration Department (GDRFA RAK) – Cancel all investor and employee visas.
Federal Tax Authority (FTA) – File VAT deregistration within 20 working days of closure.
FEWA (Federal Electricity and Water Authority) – Final utility clearance.
Etisalat / Du – Telecommunication disconnection and NOC.
Traffic Department – If vehicles are registered under the company.
Environmental Protection & Development Authority (EPDA) – For industrial or manufacturing activities.
Civil Defense Department – Fire safety clearance for industrial licenses.
Bank(s) – Close corporate bank accounts and obtain a clearance letter.

Step 3: Submission of Liquidation Documents

Once all clearances are ready, submit the full deregistration file to RAKEZ, including:

Required Documents:

Completed De-registration Application Form (via RAKEZ Portal or manually).
Owner’s Declaration / Shareholders’ Resolution (depending on entity type).
Liquidator’s Acceptance Letter.
Final Liquidation Report by the appointed liquidator.
Audit Report confirming financial closure and liability clearance.
Termination/Resignation Letter from General Manager (if applicable).
Original Trade License and Lease Agreement.
Exit Survey Form (as required by RAKEZ).
All Clearance Certificates (Customs, Chamber, Utilities, etc.).
Bank Account Closure Letter.
Proof of newspaper publication (if required).

Step 4: Final De-registration & License Cancellation

RAKEZ reviews all documents and clearances.
A notice of liquidation may be published in a local Arabic newspaper (usually for 14–45 days).
Upon successful verification, RAKEZ issues the Final De-registration Certificate and License Cancellation Letter, officially closing your business.
The facility must be returned in its original condition within 15 days of closure.

Key Departments & Stakeholders Involved

Successfully liquidating a company in the RAKEZ Free Zone requires coordination with multiple government bodies and service authorities.
Each department plays a specific role to ensure all obligations are cleared before your license can be officially cancelled.

RAKEZ Authority (Main Authority)
Oversees the entire liquidation process — from receiving the deregistration application and verifying documents to issuing the Final License Cancellation Certificate. All submissions, fees, and clearances are coordinated through RAKEZ.
RAK Customs Department
Required for companies engaged in import/export or warehouse operations. Customs clearance confirms that no goods, containers, or duties remain pending under the company’s name.
RAK Chamber of Commerce & Industry
Provides a clearance or membership cancellation certificate for companies that were registered members of the Chamber. This ensures no outstanding fees or trade activities remain.
Federal Electricity & Water Authority (FEWA)
Issues a final utility clearance confirming all bills for electricity and water have been settled and service disconnections completed at the company’s facility.
Ministry of Human Resources & Emiratisation (MOHRE)
Handles employee-related matters, including cancellation of labour cards and work permits, and ensures final settlements and gratuities are paid to staff.
General Directorate of Residency & Foreigners Affairs (GDRFA – RAK)
Processes the cancellation of residence visas for shareholders, partners, employees, and dependents under the company’s sponsorship.
Federal Tax Authority (FTA)
For VAT-registered entities, the FTA oversees VAT deregistration and ensures all tax liabilities and filings are cleared within 20 business days to prevent penalties.
RAK Environmental Protection & Development Authority (EPDA)
Mandatory for industrial or manufacturing businesses, EPDA confirms there are no environmental violations or waste management issues before the company’s closure.
RAK Civil Defense Department
Required for businesses operating from warehouses, factories, or workshops. Provides a clearance to confirm fire safety systems were maintained and all obligations met.
Telecommunication Providers (Etisalat / Du)
Issue service termination NOCs confirming cancellation of phone lines, internet connections, and corporate accounts registered under the company.
Traffic Department (Ras Al Khaimah Police)
Applies to companies with registered vehicles. Clearance ensures all fines are paid and vehicle registrations are cancelled or transferred.
Commercial Banks
Before liquidation, all corporate bank accounts must be closed. Banks issue a clearance letter confirming there are no outstanding loans, overdrafts, or liabilities.

Shareholders’ Resolution or Owner Declaration
Liquidator Appointment Letter
Liquidator’s Final Report
Original License & Lease Agreement
Employee & Investor Visa Cancellation Proof
Clearance Certificates (Customs, Utilities, Bank, FTA)
Termination/Resignation Letter for GM
Completed Exit Survey
Proof of Facility Handover in Original Condition

Common Challenges in RAKEZ Company Liquidation

Even with a clear process, companies in RAKEZ Free Zone often face a few hurdles during liquidation:

Visa & Labour Delays: Uncancelled employee or investor visas can stall deregistration.
Missing Clearances: Incomplete NOCs from FEWA, FTA, or Customs delay approval.
Unpaid Dues: Outstanding rent, utilities, or fines must be cleared before closure.
Late VAT Deregistration: Delay with FTA can lead to penalties of up to AED 10,000.
Bank & Liquidator Issues: Banks may hold clearance until debts are settled; incorrect liquidation reports cause rejections.
Facility Handover Problems: Offices or warehouses not restored to original condition can slow final approval.
Expired Licenses: Starting liquidation after license expiry triggers AED 50/day penalties.

Tip: Begin early, keep records ready, and coordinate with a registered liquidator to avoid costly delays.

Average Duration:

3 to 6 weeks (depending on visa cancellations, clearances, and publication requirements)

Estimated Costs:

Component	Estimated Fee (AED)
RAKEZ Deregistration Fee	3,000 – 3,500
Newspaper Publication (if applicable)	800 – 1,200
Clearance Letters & NOCs	500 – 1,000
Liquidator’s Fees	4,000 – 8,000+
Visa Cancellation (per person)	300 – 500
Utility & Bank Closure Charges	300 – 800
Total Estimated Range	8,000 – 15,000+

Penalties:

AED 50 per day late deregistration fine.
AED 1,100 fine for delayed immigration closure.

Timely submission of documents and VAT deregistration within 20 working days can help you avoid unnecessary penalties.

Note: These figures are estimates based on market practices. Actual costs depend on your company’s scale, pending liabilities, and number of visas.

The Capital Zone Liquidators

Why Choose Our Services?

Our liquidation experts handle the entire RAKEZ closure process from drafting resolutions and coordinating with liquidators to obtaining all government clearances and securing your final License Cancellation Certificate quickly and without stress.

We ensure compliance with RAKEZ regulations and help you avoid late penalties or delays in deregistration.

Frequently
Asked Questions

How long does it take to liquidate a company in RAKEZ?

It typically takes 3–6 weeks, depending on the size of your business, visa cancellations, and clearance timelines.

Do I need a liquidator for RAKEZ liquidation?

Yes. A registered liquidator is mandatory for LLCs and FZ-LLCs, but not always for FZE or Branch entities.

What happens if I don’t deregister my company on time?

You’ll incur AED 50 per day in late fees and possible AED 1,100 immigration penalties.

Can I liquidate a company with outstanding rent or bank loans?

No. All financial obligations must be settled before submitting the deregistration application.

Is VAT deregistration required?

Yes, VAT-registered companies must deregister with the Federal Tax Authority (FTA) within 20 business days of ceasing operations.

What condition should I return my facility in?

Facilities must be returned to their original state within 15 days of liquidation.
RAKEZ may restore it at your cost if not done.