Closing a Mainland Business in the UAE: Licence Cancellation, Liquidation and Tax Deregistration

Nobody starts a company planning to close it. But founders pivot, merge, restructure, or move on, and sometimes the right decision is to wind a business down. In the UAE, doing that properly protects you from fines, keeps your record clean for your next venture, and makes sure employees and creditors are treated fairly.

This guide covers closing a mainland business, with a focus on Dubai, using the u.ae page on closing a business on the mainland and the Federal Tax Authority's Corporate Tax and VAT deregistration pages, all linked at the end. We have left out all fees; each authority shows current figures. Free zone companies follow their own authority's process.

General information, not legal advice. Procedures change; always check the official source.

Why you must cancel the licence

u.ae is direct about it: whatever type of business you own, once you decide to close it you must cancel your business licence and all related permits. The reason is simple. Government entities need to know you are no longer trading, so you do not keep incurring fines and penalties for not renewing your licence.

Walking away from an unrenewed licence does not close the company. It just lets fines build up.

Who applies

According to u.ae:

• For an establishment or branch, the application to cancel the licence is submitted by the party concerned.
• For a company, the application is submitted by the liquidator.

u.ae links to each emirate's own channel, including TAMM in Abu Dhabi, the Dubai Government portal and Invest in Dubai, and the economic development departments in Sharjah and Ajman.

Closing in Dubai: by legal form

u.ae sets out the steps for Dubai by legal form.

Sole proprietorship

Cancel the labour cards through the Ministry of Human Resources and Emiratisation (MoHRE).

Civil company

1. Cancel the labour cards through MoHRE.
2. Provide a notarised partnership termination contract.

Commercial companies (all legal forms, including LLCs)

Deregistration runs in two phases.

Phase 1

1. Notarised minutes of the general assembly confirming the company's liquidation and appointing a named liquidator.
2. A letter from the liquidator accepting the appointment, with their documents: a copy of their licence, auditor registration certificate and a notarised signature specimen.
3. A certificate of the company's dissolution and liquidator appointment, subject to the legal adviser's approval.
4. An announcement of the liquidation in two Arabic local newspapers for one day, giving creditors 45 days to submit claims.

Phase 2

1. Submit the original newspaper with the announcement and the company's final report.
2. A declaration from the liquidator and partners that no objections were received within 45 days of the announcement.
3. Cancel the labour cards through MoHRE.
4. Copies of the general assembly minutes and the dissolution certificate.

Branch of a foreign company

1. The decision to liquidate from the Ministry of Economy's register.
2. An attested board decision to cancel the company.
3. Cancel the labour cards through MoHRE.

Branch of a local company

1. The board decision to cancel.
2. Cancel the labour cards through MoHRE.

Other emirates at a glance

u.ae also summarises other emirates:

• Abu Dhabi: apply to the Department of Economic Development with documents including the liquidator's acceptance certificate, a court decision, the minutes of meeting on liquidation and, where relevant, termination of the service agent contract.
• Sharjah: apply to the Economic Development Department with the letter cancelling the establishment card from MoHRE.
• Ajman: documents depend on the business type. u.ae lists a 15-day newspaper advertisement for a sole proprietorship and a 45-day advertisement for an LLC, along with an auditor's letter and a general assembly certificate.

Your team comes first

Every Dubai route above includes cancelling labour cards through MoHRE. u.ae's work permits page sets out what that involves:

• submit a formal request to cancel the work permit
• complete the required data and attachments
• settle any outstanding fines for late issuance or non-renewal
• confirm the worker has received all their entitlements.

So before you file anything, settle final salaries, notice pay, leave and end-of-service gratuity. GDRFA Dubai notes there is a 60-day grace period to stay in the country after a residence permit is cancelled, which gives your team time to move to new jobs or leave.

Corporate Tax deregistration

If your company is registered for Corporate Tax, closing the licence is not the end. FTA Decision No. 6 of 2023, made under Article 52 of Federal Decree-Law No. 47 of 2022, says a juridical person must apply for tax deregistration within 3 months of the date it ceases to exist, stops its business, is dissolved, liquidated or otherwise. A natural person has 3 months from stopping the business.

According to the FTA's service page:

• You apply through EmaraTax, and the page lists the service as free of charge.
• For liquidation or closure, you need the licence cancellation document and financial statements up to and including the licence cancellation date.
• The FTA aims to process the application within 40 working days of receiving a complete application. If it asks for more information and you do not resubmit within 60 calendar days, the application may be rejected.

VAT deregistration

If you are VAT registered, the FTA's VAT deregistration page says:

• You apply on EmaraTax, under VAT, Actions, De-Register.
• For a cancelled licence, documents include the trade licence cancellation certificate, a liquidation letter, a board resolution and a financial turnover template.
• Where deregistration is mandatory, the application must be submitted within 30 business days of the obligation arising.
• The final VAT return and payment are due no later than 28 days from the effective date of deregistration.
• The digital deregistration certificate is issued once the final return is approved and any outstanding tax and penalties are settled.

A suggested order of steps

1. Decide formally. Pass the shareholder or partner decision in writing.
2. Appoint a liquidator if you are a company.
3. Tell your team early and settle every entitlement.
4. Cancel work permits and visas through MoHRE and the visa authority.
5. Publish the liquidation notice and wait out the 45-day claim period.
6. Settle creditors and prepare the final report and financial statements.
7. Cancel the trade licence with the licensing authority.
8. Deregister for Corporate Tax within 3 months and for VAT within the FTA's deadline.
9. Keep records of every certificate and filing.

Common mistakes

• Letting the licence lapse instead of cancelling it. Fines keep building.
• Cancelling visas before paying staff. MoHRE requires confirmation that entitlements were paid.
• Forgetting tax deregistration. Corporate Tax has a 3-month deadline.
• Skipping the newspaper notice for a company. Creditors need their 45 days.
• Losing the final financial statements. The FTA asks for them.

Official sources

• u.ae, Closing a business on the mainland: https://u.ae/en/information-and-services/business/Doing-business/doing-business-on-the-mainland/closing-a-business-on-the-mainland-
• u.ae, Work permits (cancellation): https://u.ae/en/information-and-services/jobs/sector-of-employment/employment-in-the-private-sector/work-permits
• Federal Tax Authority, Corporate Tax Deregistration: https://tax.gov.ae/en/services/corporate.tax.deregistration.aspx
• Federal Tax Authority, FTA Decision No. 6 of 2023 on the Tax Deregistration Timeline (PDF): https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/26%20april%20leg%20CT/FTA%20Decision%20No.%206%20of%202023%20on%20the%20Tax%20Deregistration%20Timeline%20-%20for%20publishing.pdf
• Federal Tax Authority, VAT Deregistration: https://www.tax.gov.ae/en/services/vat.deregistration.aspx
• GDRFA Dubai, Issuing residence permits for the private sector: https://www.gdrfad.gov.ae/en/services/bf4095ea-56e2-11ea-0320-0050569629e8

Last checked: 24 October 2026.

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