In this article, we explained how to liquidate a mainland company in Dubai, including all legal steps, visa cancellations, tax deregistration, bank closures, and final approvals needed for a complete and compliant company closure.

Liquidate a Mainland Company in Dubai – Complete Guide

Mohammed Shuheb
Published On:
November 21, 2025
Last Upadte:
November 21, 2025
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Closing a mainland company in Dubai is a formal process. You must settle employees, cancel visas, clear taxes, close bank accounts, and obtain government clearances before the licence can be cancelled. As CSPzone consultants, we guide owners through each step so the company is closed cleanly with no future surprises. This article explains what to do before liquidation, the official steps, required documents, common mistakes, and realistic timelines.

What to do before you start liquidation

Check your company file
Confirm legal name, licence number, MOA or AOA, partners, authorised signatories, and the registered office Ejari. Find all originals. You will need them.

Review contracts and liabilities
List every payable and receivable. Include supplier invoices, customer refunds, loans, credit cards, lease obligations, utilities, telecom, and guarantees. Agree settlements in writing.

Settle employees and WPS
Calculate final salaries, unused leave, and gratuity. Pay through WPS. Obtain signed releases. Cancel work permits in MoHRE and residence visas after payments are complete.

Handle VAT and corporate tax
File pending VAT returns, pay due tax and penalties, then submit VAT deregistration to the Federal Tax Authority. If you are registered for corporate tax, file the final return when due and apply for deregistration. Keep payment receipts and acceptance emails.

Close active permits and approvals
Some activities hold external approvals such as Dubai Municipality, DHA, RTA, Tourism, TRA, or ESMA. Ask each authority for a closure or no objection letter.

Prepare bank and finance exits
Repay loans, overdrafts, and cards. Request bank liability letters, then close corporate accounts. Take final statements for the liquidator and FTA records.

Inspect physical assets
Count inventory, release pledged goods, and decide whether to sell or scrap. Record serial numbers and disposal notes for the liquidation report.

Clear fines and violations
Check DET Dubai licence fines, MoHRE fines, immigration fines, traffic fines, municipality violations, and customs penalties. Pay and keep proof.

Documents you will usually need

  • Trade licence and all renewal receipts
  • MOA or AOA and all amendments
  • Partners resolution to liquidate
  • Passport and Emirates ID copies of partners and managers
  • Ejari tenancy and landlord clearance
  • Latest audited or management accounts
  • Bank liability letter, final statements, and closure letters
  • VAT and corporate tax deregistration confirmations when issued
  • Utility clearances from DEWA and district cooling if any
  • Telecom clearance from etisalat or du
  • Customs client code closure if any
  • Vehicle sale or RTA clearance if cars are under the company

Keep originals together. Scan everything.

Official liquidation steps for a Dubai mainland company

Step 1: Partners pass a resolution
Partners sign a special resolution to liquidate the company and appoint a liquidator. Signatures are notarised. For sole establishments, the owner issues a signed decision.

Step 2: Appoint a licensed liquidator
Choose an approved audit or liquidation firm. They accept the appointment on their letterhead. From this point they guide financial closure and prepare the final report.

Step 3: Apply to DET Dubai for initial approval
Submit the resolution, liquidator appointment, licence copy, and basic forms on the DET portal. Once accepted, DET issues the initial liquidation approval and opens the public notice stage.

Step 4: Public notice period
A statutory public notice runs for a fixed period, usually forty five days. This allows any creditors to submit claims to the liquidator. During this time you continue clearances and cancellations.

Step 5: Cancel establishment card and visas
Open files are closed in MoHRE and GDRFA. Cancel all employee visas and labour cards, then cancel partner visas if linked to this licence. Obtain MoHRE and immigration clearance.

Step 6: Close utilities, tenancy, and telecom
Settle DEWA and district cooling, obtain final bills and clearance letters. Close etisalat or du accounts. End Ejari and obtain landlord clearance.

Step 7: Close bank accounts and collect tax proofs
After settlements, close bank accounts and obtain official closure letters. File any last VAT returns, pay balances, and submit deregistration. Keep FTA acknowledgements. Prepare corporate tax finalisation according to due periods and request deregistration.

Step 8: Liquidator prepares the final report
The liquidator reviews assets, liabilities, settlements, and bank movements. They issue the final liquidation report and a statement of affairs confirming all dues are settled.

Step 9: Submit final package to DET Dubai
Provide the liquidation report, public notice completion, all government clearances, visa and labour cancellations, utility and telecom clearances, landlord clearance, tax deregistration submissions, and bank closures.

Step 10: Receive licence cancellation and company deregistration
DET Dubai issues the cancellation certificate. Keep it safely with all supporting documents. Your mainland company is now legally closed.

Visa, labour, and employee handling

  • Pay all dues through WPS and obtain signed releases
  • Cancel work permits in MoHRE and residence visas in GDRFA
  • Transfer any sponsored dependants to new sponsors before cancellation
  • Keep copies of cancellations and clearances for the liquidator and for your records

VAT and corporate tax during liquidation

  • File any outstanding VAT returns and settle balances
  • Apply for VAT deregistration once taxable supplies end
  • Maintain ledgers and bank proofs for FTA queries
  • Prepare the last corporate tax return on time
  • Apply for corporate tax deregistration after legal closure
  • Keep acknowledgements and payment receipts

Banking and finance checklist

  • Request bank liability letters and plan settlements
  • Close POS and payment gateway accounts
  • Revoke online banking tokens and user access
  • Obtain final statements and closure letters for each account

External approvals and assets checklist

  • Dubai Municipality or sector approvals closure where applicable
  • DHA or health authority clearances for clinics or labs
  • RTA clearances for vehicles, plates, or commercial permits
  • Customs client code closure and warehouse bond releases if any
  • ESMA or product conformity portals closure for regulated items
  • Inventory and fixed asset disposal records for the liquidator

Timelines you can expect

If records are clean and documents are ready, many mainland liquidations finish in sixty to ninety days. Delays usually come from pending visas, tax filings, banking settlements, customs holds, or incomplete landlord clearances. Plan for these early.

Typical costs to plan for

Expect professional fees for the liquidator, government fees for applications and publications, visa cancellations, final audits where required, and small costs for clearances and attestations. Companies with loans, vehicles, customs, or many employees usually spend more and take longer. A quick review of your case will produce a realistic estimate.

Common mistakes and how to avoid them

  • Letting the licence expire instead of liquidating, which leads to fines
  • Not closing bank accounts, which blocks final clearance
  • Forgetting VAT or corporate tax deregistration, which triggers penalties
  • Cancelling visas late, which delays MoHRE and immigration closure
  • Missing landlord or Ejari clearance, which stops DET from issuing cancellation
  • Poor records, missing originals, or unsigned resolutions

Create a single checklist and tick each item with dates and document references.

Simple example to visualise the process

A trading LLC with five staff decides to close. Partners sign a resolution and appoint a liquidator. Salaries, leave, and gratuity are paid through WPS. MoHRE and visas are cancelled. DEWA, du, and Ejari are cleared. The company files a final VAT return, pays the balance, and submits VAT deregistration. The bank loan is settled, accounts are closed, and closure letters are collected. During the notice period creditors submit no claims. The liquidator issues the final report and files all clearances. DET Dubai issues the licence cancellation. The owners keep a full file of proofs for seven years.

How CSPzone manages your liquidation

We start with a compliance health check. Then we prepare your resolution, appoint the liquidator, schedule all cancellations, obtain clearances, organise tax deregistration, and submit the final package to DET. You receive a single point of contact and a complete closure file at the end.

Final thoughts

Liquidation is not just paperwork. It is a legal exit that protects you from future claims and fines. If you follow the steps in order, keep records clean, and close every file in labour, immigration, tax, banking, utilities, and tenancy, your mainland company will be closed properly and permanently.

If you want a quick review of your case, share your licence, MOA, last VAT filing status, and employee count. We will map a clear timeline and checklist for a smooth mainland company liquidation in Dubai.

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