Closing a company in any UAE free zone requires proper procedures, clear documentation and approvals from multiple authorities. As a CSPzone consultant, I help business owners complete liquidation smoothly, and many are often surprised at how simple it becomes when the process is followed correctly.
In this article, I will explain the full liquidation process in very simple language, including what you must do before you start, which documents are required, and the exact steps followed by most UAE free zones.
This guide applies to popular free zones such as DMCC, IFZA, JAFZA, RAKEZ, SHAMS, SPCFZ, Meydan Free Zone, Ajman Free Zone and others.
Important Checks You Must Complete
Before applying for liquidation, make sure you review these important points:
1. Check Outstanding Liabilities
Confirm that the company does not have unpaid invoices, supplier payments, employee salaries or government dues.
2. Close All Active Visas
Every visa issued under the company must be cancelled including shareholder visas, employee visas and dependent visas. Free zones will not accept liquidation if any visa is active.
3. Ensure All Taxes and VAT Are Cleared
Submit your final VAT return if your company is registered. Clear corporate tax obligations if applicable. The Federal Tax Authority must show no pending liabilities.
4. Close Your Company Bank Account
Before liquidation is accepted, you must provide a bank account closure letter. No active corporate account should remain.
5. Clear Office Rent and Utilities
If you have an office, warehouse or desk space, settle all dues with your free zone landlord and obtain a clearance letter.
Completing these checks early saves a lot of time during the liquidation process.
Below are the documents usually needed in all UAE free zones:
• Company licence copy
• Memorandum of Association
• Establishment card
• Passport copies of shareholders
• Board resolution to liquidate
• Clearance letter from the free zone landlord
• Clearance from telecom provider if applicable
• Clearance from customs if the company imported goods
• Bank account closure letter
• Final audit or liquidation report prepared by an approved auditor
CSPzone will help you gather each document and prepare everything in the correct format.
Below is the simplified process followed by almost all free zones. The steps may vary slightly, but the concept is the same.
Pass a Board Resolution to Liquidate the Company
All shareholders must sign a resolution confirming their decision to close the company. This is the official starting point.
Appoint an Approved Liquidator
UAE free zones require liquidation to be handled by a registered auditor or liquidator. The liquidator will issue an appointment letter confirming they will manage the process.
Submit Initial Documents to the Free Zone Authority
You will upload the resolution, licence copy, passport copies, establishment card and liquidator appointment letter. Once submitted, the free zone begins reviewing the file.
Cancel All Company Visas
All visas under the company must be cancelled. This includes employee visas, shareholder visas and dependent visas. Immigration files and establishment cards are also cancelled at this stage.
Submit the Final Liquidation Report
The liquidator prepares a report confirming that the company has no liabilities and has settled all payments. This report is submitted to the free zone along with original company documents such as licence, MOA and share certificates.
Public Notice Period
Most free zones publish a notice announcing your company liquidation for a fixed period, usually between 14 to 30 days. This allows any third party to raise a dispute if they have pending claims.
Receive the Final Deregistration Certificate
Once the notice period ends and all checks are completed, the free zone issues two important documents:
• Final liquidation certificate
• Company deregistration confirmation
Your company is now officially closed and removed from the free zone register.
Most free zone liquidations take between 30 to 60 days, depending on:
• Visa cancellations
• Clearance letters
• Audit report preparation
• Free zone approval timelines
Some cases take longer if taxes or fines are involved.
Liquidation can feel confusing when dealing with multiple departments, documents and approvals. As CSPzone consultants, we handle every part of the process such as:
• Preparing all documents
• Coordinating with the free zone authority
• Handling visa cancellations
• Working with an approved liquidator
• Submitting reports and following up daily
• Securing your final deregistration certificate
Our job is to make liquidation smooth, clear and stress free so that you can move forward with your next business plan.
