The short answer
You can't simply stop renewing your licence: an unclosed company keeps building fines and can block your visa and bank. A proper closure means a shareholder resolution, notice to the authority (and a public notice where required), cancelling every visa, deregistering for VAT and corporate tax with final returns, clearances, closing the bank account and receiving the authority's termination letter. The exact steps and timing depend on your Free Zone or on mainland rules.
Why closing properly matters
- Fines keep running on an expired licence, establishment card and visas.
- Tax returns stay due until VAT and corporate tax registrations are cancelled.
- Your name stays linked to the company as shareholder or manager.
- Future plans: a new company, visa or bank account in the UAE can be blocked by an old one.
How to close a company in the UAE, step by step
- Shareholder resolution to close the company and, where required, appoint a liquidator.
- Notice to the authority and, in some zones and on the mainland, a public notice period for creditors.
- Visa and labour file cancellation for you and every employee, with final salaries and end-of-service gratuity.
- VAT and corporate tax deregistration, with final returns and payments.
- Debts settled and final accounts prepared.
- Clearances from the authority, utilities and other departments.
- Bank account closure, after final payments and refunds arrive.
- Licence cancellation and the authority's termination letter.
VAT and corporate tax deregistration
Both registrations must be cancelled, each with final returns. Until they are, returns stay due and late-filing penalties can apply. The Federal Tax Authority may ask for records before it approves, so the books must be up to date to the closing date. We prepare the final returns and deregistration requests and send them to you for approval. See VAT and corporate tax.
Free Zone or mainland closure
| Free Zone company | Mainland company | |
|---|---|---|
| Authority | The Free Zone | Department of Economy and Tourism |
| Liquidator | Required by some zones, not by others | Usually required for an LLC |
| Public notice | Some zones | Usually, with a creditor period |
| Labour file | Usually through the Free Zone | Ministry of Human Resources and Emiratisation |
| Lease | Flexi-desk or office agreement ended | Ejari lease cancelled |
Documents you usually need
- Shareholder resolution to close, signed and sometimes notarised
- Original licence and company documents
- Passports and visas of shareholders and staff
- Final accounts and, where required, a liquidator's report
- Clearance letters and the bank account closure letter
Alternatives to closing
Sometimes it is cheaper or smarter to keep the company dormant, sell it or change its activities. A dormant company still has renewal costs and must still file its corporate tax returns, so we compare the options with you before you decide.
Mistakes that cost money
- Leaving the UAE with active visas or an expired licence
- Forgetting VAT or corporate tax deregistration
- Closing the bank account before final payments and refunds arrive
- Missing books for the last period, which the tax authority may ask for
- Cancelling your own visa before planning your next one
How we help
We map the steps for your authority, prepare the resolution and final accounts, cancel visas and files, deregister VAT and corporate tax, and follow up until the termination letter is issued. If we keep your accounts, the books are already ready to the closing date.