Closing a Company Properly: The Five Tracks to Clear

You have decided to close, and you want to know what cancelling the trade licence costs. The licence is one of five tracks, and the other four can stall it or leave obligations running after the business has stopped.

The short answer on cost: Invest in Dubai's "Request for cancellation of trade licence" service page lists "Licence cancellation fee: AED 1,020" and "Company dissolution fee: AED 2,520" as separate lines. For a company liquidation it also lists "Payment of AED 520 for the certificate of the company's dissolution and liquidator appointment, subject to the legal advisor's approval." GDRFA Dubai and ICP publish residence and establishment card lines, and the Federal Tax Authority shows its deregistration services as "Free of charge". We do not add these lines into a total.

This article sits under our overview of setting up and running a business in Dubai. A closure runs on five tracks. The first three are labour and work permits (MOHRE for mainland companies; in a free zone, ask your free zone authority), immigration and the establishment card (GDRFA Dubai for Dubai; ICP's establishment card cancellation service covers establishments in free zones), and corporate tax and VAT (the FTA). The other two are banking and contracts, and the licence and liquidation (Dubai Economy and Tourism, or your free zone authority).

What the official pages say closing involves

The UAE Government Portal (u.ae) opens its mainland closure page with the obligation: "No matter what type of business you own, you must cancel your business licence and all related permits, when you have made your decision to close it down."

For Dubai, the same page sets out steps for company de-registration and states: "This is applicable to all legal forms of commercial companies." It then lists separate requirements for a sole proprietorship, a civil company and a branch of a foreign company.

The federal law is Federal Decree Law No. (32) of 2021 on Commercial Companies, shown as "Active" on the UAE Legislation portal. We did not capture its liquidation articles on 20 September 2026, so this article does not describe what the law requires of a liquidator.

Appoint licensed legal counsel for the corporate decisions and a registered auditor or liquidator for the accounts and the liquidation itself.

Which comes first: the official pages differ

Invest in Dubai's cancellation service page states: "Prior to cancellation, you must complete other cancellations with local and federal government entities." The Dubai government portal (dubai.ae) states: "Prior to cancellation of your trade license of a company or branch, permanently, you must complete other cancellations with local and federal government entities too."

ICP's establishment card cancellation service, which it describes as covering "government and private establishments operating in free zones", lists the term "Commercial License Cancellation First". Its documents include "A copy of the canceled commercial license for the private sector".

The pages differ in scope and sequence. For a Dubai mainland company, confirm the order with Dubai Economy and Tourism and GDRFA Dubai. For a free zone company, confirm it with your free zone authority and ICP.

GDRFA Dubai's establishment card cancellation page states: "It is stipulated that no sponsored persons are on the establishment card when applying to cancel the card." Its residence cancellation page lists "A cancellation from the Ministry of Human Resources and Emiratisation" as a condition. So on GDRFA Dubai's own pages, work permits come off before residences, and sponsored persons come off the establishment card before it is cancelled.

Track 1: labour and work permits

u.ae lists "Cancellation of labour cards through the Ministry of Human Resources & Emiratisation." among the Dubai company liquidation requirements.

GDRFA Dubai's residence cancellation page asks for "An extract of work permit cancellation issued by the Ministry of Human Resources and Emiratisation (if the employee works in the private sector)." So plan labour cancellations first.

We could not open MOHRE's establishment card and work permit cancellation pages on 20 September 2026, so this article states no MOHRE closure condition or fee. Ask MOHRE before you budget this track.

Each employee's cancellation carries its own employer obligations when cancelling an employee's visa, covered separately.

Track 2: immigration and establishment card

Residence permits. GDRFA Dubai's residence permit cancellation page lists "Residence permit cancellation: AED100", "Knowledge Dirham:AED10" and "Innovation Dirham: AED10", with a stated time of "48.0 Hour(s)".

ICP's residence cancellation page lists "Application Fees" of 50 AED, "Smart Services Fees" of 100 AED and an "Exceptional residence cancellation fee" of 100 AED. Use the page of the authority that issued the residence. For an owner's own residence, ICP asks: "For investor or partner, a certificate of cancellation or waiver of the commercial license". Plan the owner's residence cancellation around the licence track for that reason.

Grace period. The two authorities' pages differ. GDRFA Dubai's page states a grace period "of (60) sixty days". ICP's page sets out periods by category, including a 30-day period for "all other categories". Confirm the period that applies with the authority that issued the residence. ICP also states: "A fine of AED 50 per day is applied for staying in the UAE after the visa expires or is cancelled".

Establishment card, Dubai. GDRFA Dubai's "Cancellation of Establishment Card for all categories" page lists as documents: "A business card. A letter cancelling the facility card from the sponsor." Its fee section shows only channel charges (collection commissions and an Amer centre fee), listed in the table below; we did not find a main service fee line on 20 September 2026.

Establishment card, free zone. ICP lists an "Establishment Card Cancellation Fee" of 50 AED, a 50 AED application fee for cancelling the establishment electronic system subscription, and "Fees for Smart Services" of 100 AED. Its terms include: "Payment of all fines and clearance of workers are required."

Track 3: corporate tax and VAT deregistration

RINJAZ is not a licensed tax adviser. This article describes published requirements. Obtain advice from a licensed UAE tax adviser before acting.

Corporate tax. The FTA's corporate tax deregistration service lists "Liquidation/Bankruptcy, Closure of Business" among its reasons. For liquidation or closure, it lists: "License cancellation document, Financial Statements up to and including license cancellation date, Any other documents (optional)". The fee is shown as "Free of charge". The page states: "The application will be processed within 40 working days from the date the Authority receives the completed application."

Because the FTA lists a licence cancellation document, plan the tax track alongside track 5. Ask your tax adviser how to sequence the filing.

The deadline, and a caveat. The FTA deregistration page (updated 31 August 2026) cites Article 52 of Federal Decree-Law No. 47 of 2022 and names FTA Decision No. 6 of 2023 as its deregistration timeline. Article 2(2) of that decision states: "The juridical Person shall file a Tax Deregistration application within 3 months of the date the entity ceases to exist, cessation of the Business, dissolution, liquidation or otherwise."

FTA Decision No. 12 of 2026 sets Top-up Tax registration and deregistration timelines for multinational enterprise groups; it does not name Decision No. 6 of 2023. The FTA's corporate tax legislation list (updated 18 September 2026) does not show Decision No. 6 of 2023. Confirm the current instrument and deadline with the FTA or a licensed UAE tax adviser.

Late deregistration penalty. The Ministry of Finance publishes a consolidated text of Cabinet Decision No. (75) of 2023 "and its amendments", which includes the amendments made by Cabinet Decision No. (10) of 2024. Item 3 is "Failure of the Registrant to submit a deregistration application within the timeframe specified in the Corporate Tax Law and its implementing decisions." The penalty reads: "1,000 in case of late submission of the application and on the same date monthly, up to a maximum of 10,000."

Background sits in our articles on corporate tax registration and the UAE corporate tax overview.

VAT. The FTA's VAT deregistration page states: "Where it is mandatory to submit a deregistration application, the deregistration application must be submitted within 20 business days from the date the deregistration obligation started". It also states: "The final tax return should be submitted, and payable tax should be settled no later than 28 days from the effective date of deregistration". The fee is "Free of charge". We did not find a late VAT deregistration penalty on that page on 20 September 2026.

Track 4: banking, contracts and memberships

We did not find a requirement for a bank account closure letter or bank clearance before licence cancellation on the u.ae and dubai.ae closure pages reviewed on 20 September 2026. The following is editorial advice.

Ask your bank, in writing, what it needs to close the company account. Keep the account open long enough to pay final salaries, government fees, tax and the liquidator. List leases, supplier contracts and subscriptions, and give notice under each one's terms.

Dubai Chambers. Dubai Chambers states: "If your company is facing liquidation or dissolution, you may need to cancel your Dubai Chamber of Commerce membership." It lists for mainland companies a "Cancellation letter from DET", and for free zone companies a "Request letter from the company signed by the authorised person". It shows "No fees applicable". We did not find a statement on that page that this cancellation is required for closure.

Track 5: licence and liquidation (Dubai mainland companies)

Invest in Dubai and u.ae describe Dubai company de-registration in the same two phases. The items are quoted here from the Invest in Dubai service page.

Phase 1:

1. "Notarized minutes of the General Assembly meeting confirming the company liquidation, and the appointment of a liquidator (whose name must be mentioned)."
2. "A letter issued by the liquidator accepting to liquidate the company along with their documents (copy of the licence, auditor registration certificate, a notarized signature specimen)."
3. "Payment of AED 520 for the certificate of the company's dissolution and liquidator appointment, subject to the legal advisor's approval."
4. "Announcement of liquidation in two Arabic local newspapers for one day only, allowing debtors 45 days to submit their claims."

Phase 2:

1. "Submission of the original newspaper in which the announcement was published as well as the company's final report."
2. "A declaration letter from the liquidator and the partners stating no objections were received from any other parties within 45 days from the date of the announcement."
3. "Cancellation of labour cards through the Ministry of Human Resources & Emiratisation."
4. "A copy of the minutes of the General Assembly meeting and a copy of the certificate of dissolution."

u.ae shows the AED 520 line and the newspaper line in the same words. dubai.ae lists the certificate line without an amount. Invest in Dubai's fee section lists "Licence cancellation fee: AED 1,020" and "Company dissolution fee: AED 2,520". The page does not say how these relate to the AED 520 line, so confirm which apply with Dubai Economy and Tourism before you pay. Invest in Dubai also states: "The service will be completed within 10 minutes."

Other legal forms. For a civil company, u.ae adds "A duly notarised partnership termination contract." For a branch of a foreign company, it lists "The decision to liquidate the company from the Ministry of Economy's register." and "An attested decision issued by the Board of Directors to cancel the company." Foreign parents: prepare that attested board decision early.

For a private joint stock company, the Ministry of Economy and Tourism states: "A general assembly meeting must be convened to appoint a certified liquidator." It shows fees as "N/A".

Liquidators. We did not find an official list of approved liquidators on the u.ae, dubai.ae or Ministry pages reviewed on 20 September 2026. Check the liquidator's licence and auditor registration certificate before you appoint.

Dormant licences. If you have stopped trading but not closed, note that u.ae ties cancellation to the decision to close. Invest in Dubai sets out a separate route "For a company whose licence has expired for more than two years". Its Phase 1 includes "Announcement of liquidation in widely circulated Arabic newspapers for one day only, with a 15-day grace period for debtors to submit their requests." If you decide to keep the company, our guide to trade licence renewal covers that route instead.

Other emirates, one example. Ajman DED's "Commercial License Cancellation Service" lists fee lines including "AED 500 for publishing the license advertisements in daily newspapers". It also lists "45 days for external newspaper advertisement". We did not review other emirates' closure pages.

Cost lines found, kept apart

These are the lines found on 20 September 2026, not added together because each depends on your company's form, staff and channel.

Fees checked on 20 September 2026.

Practical asset: the five-track closure clearance checklist. Tick a line only when you hold the document. Track 1, labour. Cost lines: none read (MOHRE pages not opened). Dependency: GDRFA Dubai requires a MOHRE cancellation before a residence cancellation. Prepare: an employee list, work permit numbers and a cancellation record for each permit. Track 2, immigration. Cost lines: GDRFA Dubai and ICP lines in the table above. Dependency: GDRFA Dubai requires no sponsored persons on the establishment card; ICP asks an investor or partner for a licence cancellation or waiver certificate. Prepare: residence details for each sponsored person and the sponsor's letter. Track 3, tax. Cost lines: FTA "Free of charge". Dependency: the FTA lists a licence cancellation document. Prepare: final financial statements, the final VAT return and your adviser's view on the deadline. Track 4, banking and contracts. Cost lines: Dubai Chambers "No fees applicable". Dependency: none found on the u.ae and dubai.ae closure pages reviewed on 20 September 2026. Prepare: the bank's written requirements and a contract register with notice terms. Track 5, licence and liquidation. Cost lines: the three Invest in Dubai lines in the table above. Dependency: Invest in Dubai and dubai.ae put other cancellations first; ICP puts licence cancellation first for free zone establishment cards. Prepare: notarised minutes, the liquidator's acceptance and credentials, the newspaper notice, the final report and the no-objection declaration.

What the authority decides, what you prepare, what a provider can do

The authority decides. Dubai Economy and Tourism or your free zone authority decides the licence cancellation. MOHRE, GDRFA Dubai or ICP decide their own cancellations, and the FTA decides deregistration. No provider can decide or promise any of these.

You prepare. The corporate decisions, the liquidator's appointment, the accounts and the employee records belong to the company and its legal counsel, auditor or liquidator.

A provider can help. Within whatever its licensed activity covers, a provider can prepare files, submit them through the correct channel, coordinate the tracks and follow each application. See also our map of PRO services and our article on mainland company setup.

Information verified against official sources on 20 September 2026.

Contact RINJAZ to confirm availability, scope and quotation for your company's closure. RINJAZ is a privately licensed UAE service provider. It is not a government entity and does not act for any authority. A provider's role, within whatever its licensed activity covers, is to prepare documents, submit them through the correct channel and track progress. Each named authority decides its own application, and no provider can promise the outcome.