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Company liquidation in Dubai Mainland refers to the official process of closing down a business and removing it from the commercial registry in compliance with UAE laws. It involves settling all company obligations such as clearing debts, paying employees, closing bank accounts, and cancelling visas and the trade licence. This process often referred to as “business closure” or “company deregistration” ensures the company is fully compliant under UAE law and free from future liabilities.
Liquidation may occur voluntarily, when shareholders decide to cease operations, or compulsorily, due to insolvency or court orders. Completing the liquidation properly ensures all financial and legal responsibilities are fulfilled, protecting business owners from future penalties or liabilities once the company is fully deregistered.
At The Capital Zone, we assist businesses through every step of the company liquidation process in Dubai Mainland from preparing documents and coordinating with government departments to securing final approvals ensuring a smooth, compliant, and stress-free closure.
There are two main types of company liquidation in Dubai Mainland:
Voluntary Liquidation: Initiated by the company owners or shareholders when they decide to close the business willingly. This often happens due to strategic restructuring, retirement, or declining profitability.
Compulsory Liquidation: Initiated by the court when a company fails to meet its financial obligations or is declared insolvent.
Company liquidation in Dubai Mainland is a mandatory legal procedure for businesses that wish to permanently close their operations. It ensures that all debts are cleared, employees are paid, assets are distributed, and the company is officially deregistered with the Dubai Department of Economy and Tourism (DET) protecting owners from any future legal or financial liabilities.
Here are the main situations where liquidation becomes necessary:
Proper liquidation not only fulfills legal obligations but also protects shareholders, directors, and investors from potential disputes or liabilities after closure ensuring compliance with Dubai DET, MOHRE, FTA, and other regulatory authorities
Liquidating a mainland company in Dubai involves several legal, financial, and administrative steps to ensure the business is closed in full compliance with UAE regulations. The process ensures all company liabilities are cleared, stakeholders are informed, and the trade licence is officially cancelled by the Dubai Department of Economic Development (DED).
Below is a detailed step-by-step guide covering all key requirements:
1. Prepare a Board Resolution:
The first step is for shareholders to pass a Board Resolution approving the company’s liquidation. This document must clearly state the decision to liquidate, the name and address of the appointed liquidator, and how assets will be distributed.
For mainland companies, the resolution must be notarized by a Notary Public in Dubai.
If the shareholders are outside the UAE, the resolution or Power of Attorney must be notarized and attested by the UAE Embassy in their country and legalized by the UAE Ministry of Foreign Affairs and Ministry of Justice.
2. Appoint a Licensed Liquidator:
A licensed liquidation firm or audit company registered in the UAE must be officially appointed to oversee the liquidation. The liquidator handles all financial settlements, prepares the liquidation report, and communicates with government authorities on behalf of the company.
3. Obtain a Letter of Acceptance from the Liquidator:
The appointed liquidator must issue an official acceptance letter confirming their role.
This letter, along with the liquidator’s trade licence copy, registration certificate, and signature specimen, must be submitted to the DED.
4. Apply for Initial Approval from DED:
The Department of Economic Development (DED) issues an initial approval or primary liquidation certificate once the notarized resolution and liquidator’s acceptance letter are submitted. This approval allows the company to proceed with further liquidation steps.
5. Publish a Public Notice in Newspapers:
The company must publish a liquidation notice in two local newspapers (one Arabic) announcing its closure. Creditors are given 45 days from the date of publication to submit any claims or objections. This step ensures transparency and protects the rights of all parties involved.
6. Settle Company Liabilities and Obtain Clearances:
All outstanding dues and obligations must be settled before final deregistration. The company must obtain No Objection Certificates (NOCs) or clearances from relevant authorities, including:
7. Compliance with ESR and UBO Requirements:
Before final closure, companies must ensure compliance with Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO) laws:
8. Submission of Final Liquidation Report:
After the notice period and all clearances, the liquidator prepares the final liquidation report, which outlines how debts were settled, assets distributed, and all obligations fulfilled. This report is submitted to the DED along with the relevant supporting documents.
9. Final Deregistration and License Cancellation:
Once all requirements are met, the DED issues the final license cancellation certificate, confirming the company has been legally dissolved and removed from the Dubai Commercial Registry. At this stage, the company is officially considered closed and all legal obligations end.
A liquidator is a licensed audit or accounting firm officially appointed to manage and oversee the company liquidation process in Dubai Mainland. The appointment of a liquidator is a mandatory requirement for all Dubai mainland companies, including LLCs, partnerships, and other registered entities.
You are required to appoint a liquidator when:
In short, a liquidator ensures the closure process is transparent, compliant, and fully recognized by UAE authorities — protecting both the company and its shareholders.
At The Capital Zone, we collaborate with licensed liquidators in Dubai who handle every step of the process, from preparing financial reports and publishing notices to securing final clearances and deregistration with DET.
After the DED issues the primary liquidation certificate, the company can publish its 45-day liquidation notice in newspapers. Only after this period and the submission of the final liquidation report can the DED proceed with final deregistration.
The company liquidation process in Dubai Mainland requires coordination with multiple government departments and regulatory bodies to ensure the business is legally deregistered and all obligations are cleared. Each department plays a specific role in approving and completing the closure.
Below are the key entities involved:
Navigating all these departments can be time-consuming and confusing which is why most companies choose The Capital Zone to manage their entire liquidation process efficiently and without stress.
The average cost of company liquidation in Dubai Mainland typically ranges from AED 10,000 to AED 25,000, depending on business size, activity type, number of employees, and the complexity of obligations.
Expense Category | Estimated Range (AED) | Notes |
DET / Trade Licence Cancellation | 2,000 – 5,000 | Government and registration fees |
Liquidator / Auditor Fees | 5,000 – 15,000 | Based on company structure and workload |
Newspaper Publication (45-day Notice) | 1,500 – 2,500 | English & Arabic announcement |
Visa & Labour Clearances | 500 – 1,000 per employee | Includes MOHRE & Immigration steps |
Other Costs (Translation, Bank Closure, Utilities, Landlord NOC, etc.) | 1,000 – 5,000 | Varies by business setup |
Companies with multiple branches, VAT registration, or pending legal/tax obligations may incur higher costs due to additional settlement requirements.
The process of company liquidation in Dubai Mainland can be more complex than most business owners expect. While it is a mandatory legal requirement, many companies face avoidable delays and added costs due to compliance oversights and documentation errors.
Incomplete or Incorrect Documentation:
Missing or outdated documents such as unnotarized shareholder resolutions, old MoA versions, or unsigned forms can cause immediate rejection by the Dubai Department of Economy and Tourism (DET).
Pending Government Clearances:
The liquidation process cannot move forward until all required NOCs are obtained from authorities like the FTA, banks, utilities, and landlords. Even one missing clearance can suspend the process.
Unsettled Employee or Supplier Payments:
Labour disputes, unpaid salaries, or unresolved supplier dues often delay visa cancellations and final approvals from MOHRE and Immigration.
VAT and Tax Deregistration Delays:
Late VAT deregistration or incomplete filings with the Federal Tax Authority (FTA) can result in penalties and hold up the issuance of final clearance certificates.
Coordination Between Multiple Departments:
Managing communication and submissions across DET, MOHRE, FTA, banks, and utilities can be time-consuming and confusing, especially without prior experience.
Proper planning, documentation, and expert handling are essential to avoid these challenges. At The Capital Zone, we simplify the entire Dubai company liquidation process — ensuring every requirement is met correctly, timelines are maintained, and your business is closed smoothly and in full legal compliance.
The company liquidation process in Dubai Mainland generally takes 45 to 60 days when all documents and clearances are properly prepared.
For companies with complex finances, unpaid taxes, or multiple employee visas, the timeline may extend up to 90 days or more.
At The Capital Zone, we provide transparent pricing and end-to-end liquidation assistance from document preparation and government coordination to final licence cancellation ensuring your company closure in Dubai Mainland is handled efficiently, compliantly, and cost-effectively.
Note: All prices mentioned above are approximate market estimates and may vary depending on the company’s structure, legal status, and specific case.
How The Capital Zone Liquidators Help with Company De-registration & Business Closing
At The Capital Zone, we specialize in providing end-to-end company liquidation services in Dubai Mainland handling everything from initial consultation to final trade license cancellation. Our goal is to make your business closure smooth, compliant, and stress-free.
Here’s how our professional team supports you:
With The Capital Zone, you’re not just hiring a service, you’re partnering with experienced professionals who understand every detail of Dubai’s business liquidation laws. We ensure your company exits the market legally, responsibly, and with complete peace of mind.
It’s the legal process of officially closing a business, settling all liabilities, and cancelling the trade licence with the Dubai Department of Economic Development (DED).
Yes, a licensed liquidator or audit firm must be appointed to handle the process, prepare the liquidation report, and coordinate with government departments.
On average, it takes 45 to 60 days, including the 45-day creditor notice period and final clearances from relevant authorities.
Yes, but all outstanding debts must be settled during the process. The liquidator ensures creditors are paid before the company is deregistered.
You’ll typically need a board resolution, trade license copy, MOA, shareholder IDs, and a liquidator’s acceptance letter.
All employee visas must be cancelled, and their dues and end-of-service benefits must be paid before the company is closed.
Mainland companies liquidate through Dubai Economy (DED/DET), while each free zone (e.g., DMCC, DDA) has its own liquidation rules and portals.
Costs typically range from AED 8,000 to AED 15,000, depending on company size, liquidator fees, and required government clearances.
It’s possible, but due to legal and procedural complexity, it’s best to hire professionals like The Capital Zone for a smooth and compliant process.
The Capital Zone provides end-to-end liquidation support from documentation and coordination with DED to final licence cancellation ensuring your company is closed efficiently and stress-free.
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