📌 No matter what type of business you own in Dubai, it is required to cancel the business license and all related permits associated with it when you have made the decision to liquidate the business.

In the unfortunate event of closing down your UAE business or closing down and reopening a new business, etc., there is some paperwork and legal proceedings to be initiated. It is to ensure the smooth closing of your company and not record any fines or penalties.

Closing down a business in Dubai requires a lot of steps, processes and documentation, attestations and approvals from Government Authorities. To save time and effort, requesting the assistance of a well experienced Business Consultant is best when you decided the close a business in Dubai.

Our expert team at BIZZMOSIS has the expertise and experience and will accompany you safely and easily throughout the company liquidation process to ensure you have a hassle-free company closure in Dubai.

Steps in CLOSING DOWN YOUR BUSINESS in Dubai

The basic steps for closing down all types of legal forms of business in Dubai are almost the same with only few differences, depending on the type of business and the business jurisdiction – Mainland, Freezone, Offshore.

Close a SOLE-PROPRIETORSHIP in Dubai

• Fill in the Registration & Licensing Application form through approved channels
• Submit the Trade License Copy
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Collect business-activity specific approvals
• Submit the above documents via the approved channels and collect the License Cancellation Certificate

Close a COMPANY’s BRANCH in Dubai

• Fill in the Registration & Licensing Application form via the approved channels
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Submit the attested decision issued by the parent company to cancel the branch
• Collect business activity-specific approval (if required)
• Approval from the Ministry of Economy to cancel the foreign company branch
• Submission of documents via the approved channels and collect the License Cancellation Certificate

Close a CIVIL WORKS COMPANY in Dubai

• Fill in the Registration & Licensing Application form via the approved channels.
• Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation
• Cancel the foreign partners’ visas sponsored by the company
• Collect business activity-specific approval (if required)
• Prepare a Partnership Cancellation Contract authenticated by a notary public or any of the state’s court
• Submit the above documents through approved channels and collect License Cancellation Certificate.

Steps to CLOSE ALL TYPES OF COMPANIES in Dubai
(except civil companies)

Stage 1 – Dissolve a company and appoint a liquidator in Dubai

• Prepare notarized minutes of the Shareholder’s meeting to confirm the company liquidation. Also, include the notice of appointment of a liquidator
• Prepare a letter issued by the liquidator accepting to liquidate the company along with the liquidator’s credentials (Business license copy, auditor’s registration certificate, a notarized signature specimen)
• Fee payment for obtaining the certificates of the Company’s dissolution and liquidator appointment, subject to the legal advisor’s approval
• Publish a notice/announcement of liquidation in two Arabic local newspapers for one day, the notice should give the public a period of 45 days to submit any claims or complaints.

Stage 2 – Remove a company from the Register in Dubai

• Prepare and submit at the DED a declaration letter from the liquidator and the partners indicating that there is no objection from any other parties during 45-days of dissolution announcement (grace period)
• Submit at the DED the original newspaper in which the announcement was published as well as the company’s final report
• Cancel the establishment card at the Ministry of Human Resource and Emiratisation
• Cancel partners’ residence visa at the General Directorate of Residency & Foreigners Affairs
• Collect business activity-specific approvals (if required)
• Obtain the Ministry of Economy’s decision to cancel the company’s License (for private shareholding companies)
• Obtain the Securities and Commodities Authority decision to cancel the company’s License (for public shareholding companies)
• Submit all the above documents along with Stage -1 documents through approved channels and get the approval of a DED legal advisor.
• DED will determine the total fees to be paid
• A payment voucher will be issued to pay the deregistration fees. After which a certificate of deregistration (cancellation) will be issued to the company

Which type of company requires a liquidator?

For companies with shares, the process is longer because it requires liquidating the shares, collecting the debts and paying the creditors’ before finalizing with DED.

You need to appoint a liquidator if the legal form of your company is one of these:

• General Partnership
• Limited Liability Company
• Simple Limited partnership
• Public Joint Stock Company
• Private Joint Stock Company

Closing a Business in Dubai FREEZONES

There are 3 types of closures for Freezones companies:
• Summary winding up – when a company has no liabilities or is able to settle the liabilities within 6 months and commence with a statement of solvency
• Creditors winding up – Company passes a resolution for winding up and is followed by a meeting with the company’s creditors
• Bankruptcy – Done by the Court under UAE Commercial Transaction Law No.18 of 1993

It is mandatory in the UAE to notify the Freezone authority in advance as per their requirement.
In the DMCC Freezone, the business closing application must be submitted through the member portal.
The authorities, duties and responsibilities of the Directors of the company will be terminated as part of the cancellation of business license.
The application will be reviewed and processed. This will be followed by an announcement in a local Arabic newspaper. DMCC authorities will then file the final termination of the company and issue termination letters.

In JAFZA, companies must notify the authorities 3 months’ prior for the office and warehouse facility and 6 months’ prior for plot facility.

In all cases, employee’s visa and work permits have to be cancelled. The employees have to be given a two-month paid notice period before terminating their contracts.

The company must cancel utilities and telecommunication services and obtain the required NOC’s, clearances, notify the concerned government authorities, obtain the final License Cancellation Certificate and have a smooth closure to avoid any future legal violations.

Useful links:
• https://www.smartdubai.ae/ – the official portal of Dubai Government
• http://jafza.ae/con…/rules-regulations/Termination-Guide.pdf – JAFZA Termination Guide
• https://www.dmcc.ae/free-zone/…/how-guides/closing-a-company – DMCC – Termination Guide

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 hello@bizzmosis.com
☎️ +971 4 381 3934
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With over 20 years of expertise in Mainland and Free Zone company liquidation services, Bizzmosis is here to accompany you safely and easily throughout the company liquidation process to ensure you have a hassle-free company closure in Dubai.

 

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