Procedure of company liquidation in Dubai

Cancellation of company or business or business license in Dubai is very important part of company life cycle in UAE. Business need to close if they do not have enough money to run their business, or their business is not running correctly or they are not in the earning side of the market; and to continue their operations, to pay their employees or cover their debt. Terminating also becomes mandatory when a company obligates a serious violation of the regulation; or also in case of fraud and UAE business regulatory finds violations. or when the company gets a legal notice that affects its regular operations. So corporation needs to be shut down; and by shut down we mean closing company in Dubai. But note that once a business license is shut down; the same cannot be re-opening. For company liquidation in Dubai, you need to submit a number of documents and get different authorizations from the government agencies.

With Dubai and Abu Dhabi at the head, the UAE has developed a business center. Still, in certain cases companies can surface difficult financial conditions or the owners and also stockholder agree to take their business to another place. This calls for the company license cancellation proceedings to be initiated. This procedure will depend on the company’s economic status at the instant of the start of the process. LLC license cancellation in Dubai can also be bringing up to as trade license cancellation in the Emirate.

Types of LLC license cancellation in Dubai

As mentioned above, a Dubai company can be close willingly or when it cannot able to pay its debts. The Company Law provides for two types of LLC license cancellation in Dubai:

  1. Intended liquidation;
  2. Compulsory liquidation.

Our company formation agents in Dubai can offer more information about DED license cancellation procedures under the Commercial Law.

Procedure of company liquidation in Dubai

Intentional or compulsory company license cancellation can be requested by the owners or the stakeholder in Dubai. The stakeholder or the owner of the company will hold a meeting during which a resolution must be approved for the liquidation process to begin, in the case of intentional dissolution. During the same meeting a liquidator must be hired. In the case of compulsory liquidation, the procedure will begin by court order.

The business legal agents will be required to file the following documents with the Dubai Trade Register:

  • The document stating the dissolution of the company and the appointment of the liquidator;
  • A certified copy with the signatures of the company’s directors and liquidator attesting to the liquidation;
  • The company’s certificate of registration and its trade license;
  • A copy after the liquidator’s license accompanied by a letter stating the approval of the liquidation.

A large part of closing company in Dubai deals with final compensation for employees. The owner or owners of the company will have to cancel their employees’ visas as well as their work permits. This requires coordination with both the Department of Naturalization and Residency and the Ministry of Labor. As per UAE labor law, employers are required to give their employees a two month, paid notice period before terminating their contracts. In many cases, employees can keep their residency visas until the company’s trade license runs out.

Apart from finalizing labor contracts, it is also necessary to formally cancel any subscribed utilities, including cancelling your account with DEWA and Etisalat or du and retrieving your deposits. Office or warehouse leases will also have to be honored.  Taking into consideration that license cancellation of all legal forms requires the application of specific documents and approvals from government and federal authorities if necessary.

First: Notice of Company’s Dissolution & Appointment of a Liquidator:

  • Submission of Registration & Licensing Application Form
  • Duplicate of official document showing dissolution of the company, appointment of a legal liquidator and mentioning his name and determining the method of liquidation. This may either be by a resolution of the company’s partners or general assembly duly notarized, or by court order.
  • Certified copy of the signature of company’s director(s), and the company’s legal liquidator, as the case may be, authenticated by the Notary Public.
  • Original Certificate of Registration in the Commercial Register + the original trade license.
  • Copy of the license of the liquidator + Certificate of condition auditor + Letter from the liquidator approving the liquidation of the company.

Second: Cancellation from the Commercial Registration

  • Certificates issued in the other Emirates indicating cancellation of license(s) (if any).
  • Original copy of the final account of liquidation approved by the partners or general assembly and stamped by the legal liquidator.
  • No-objection letter concerning cancellation issued by the Ministry of Labour & Social Affairs.
  • Visa Cancellation of the partner(s) in case they are sponsored by their license.
  • Copy of the notice of the company’s dissolution & appointment of a liquidator to be published in the official newspapers.
  • Letter from the partner for the agreement of the liquidation of the company.
  • Ministry of Economy resolution (concerning private shareholding).
  • UAE Securities and Commodities Authority resolution (concerning public shareholding).


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