BUSINESS CLOSURE • SVETLANA TATAUROVA
How to close a company in Dubai: licence, visas and taxes
How to properly close a company in Dubai: cancel the trade licence, visas and permits, obtain clearance and complete VAT and Corporate Tax deregistration.
Author: Svetlana Tataurova · Updated: 2026-09-04
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Requirements, fees and timelines in the UAE change. Message us on WhatsApp — we will check them for your activity and jurisdiction.
Do not let the licence simply expire
The official UAE Government portal recommends formally cancelling the trade licence when ceasing business. Not renewing it alone does not terminate relationships with the licensing authority, immigration, the landlord, the bank and the tax authority. First, map all company registrations and obligations.
Determine jurisdiction and procedure
The process depends on the legal form and place of registration. A Mainland company follows the procedure of the emirate's economic department, while a Free Zone company follows its zone's rules. For some legal forms a shareholders' resolution, appointment of a licensed liquidator and an official creditor-notification period are required.
Check staff, visas and the establishment card
Before cancelling the licence, work permits and employee visas are usually closed, payments settled and required confirmations obtained. Then check partners' and owners' visas, the immigration file and the establishment card. Confirm the sequence with the relevant authorities, as the documents are interlinked.
Close the lease, utilities and permits
Prepare the lease termination and Ejari, confirmations from the landlord, utility and telecom providers, as well as a cancellation or NOC from sector authorities. A clinic, salon, restaurant or educational project may have separate permits that are not automatically revoked with the trade licence.
Settle with creditors and counterparties
Before liquidation, reconcile receivables and payables, salaries, deposits, bank obligations, customer refunds and active contracts. For companies requiring a liquidator, the official UAE Government portal outlines submission of a notarised shareholders' resolution and the liquidator's documents.
Deregister VAT separately
Cancelling the licence does not replace VAT deregistration. The FTA accepts applications via EmaraTax and may request the cancelled licence, liquidation documents, financial statements and employee information. After approval you must fulfil final return requirements and pay tax liabilities within the prescribed deadline.
Deregister Corporate Tax separately
If the company is registered for Corporate Tax, a separate deregistration application is submitted via EmaraTax. The FTA lists cessation of business, sale, merger and redomiciliation among the grounds; supporting documents must be attached to the application. Tax registration cannot be considered closed merely because the trade licence was cancelled.
Keep the final set of documents
After completion, gather the licence cancellation certificate, confirmations for visas and permits, FTA deregistration certificates, final reports, and closing documents from the bank and counterparties. Confirm document retention periods with a specialised accountant and lawyer according to the company's specific structure.
Frequently asked questions
Can I simply not renew the trade licence?
This is not considered a full closure of all obligations. The UAE Government recommends officially cancelling the licence and associated permits so that fees, fines and claims do not continue to accrue.
Does every company need a liquidator?
No — the requirement depends on the legal form and licensing authority. For some Mainland company forms the official procedure requires appointing a registered liquidator; confirm the exact process before filing.
Will VAT and Corporate Tax close automatically?
No. The FTA provides separate VAT Deregistration and Corporate Tax Deregistration services via EmaraTax. Each has its own grounds, documentation and final obligations.
How is closing a Free Zone company different?
The procedure is set by the specific free zone. Typically a cancellation or liquidation application is required, visas must be closed and the zone's required clearance obtained. Follow the instructions of your registration authority.
Official sources
UAE Government — Closing a business on the mainland
UAE Government — Closing a business in a free zone
Federal Tax Authority — VAT Deregistration
Federal Tax Authority — Corporate Tax Deregistration
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