• Office 609, 6th Floor, Al Moosa Tower 1, Trade Centre 1, Sheikh Zayed Road, Dubai
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Company Liquidation

Close your company the right way with fully compliant liquidation services. We handle resolutions, liquidator appointments, clearances, tax & visa cancellations—ensuring a clean exit with minimal hassle.

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UAE is international business Hub for Middle East and North Africa (MENA) region and offers wide range of business opportunities with relative ease of doing business. The way each month thousands of companies are being incorporated in UAE and its Free Zones, similarly, there are significant number of companies which are liquidated/dissolved. There can be multiple reasons for company liquidation such as group restructuring, failure to pay debts, corporate losses etc.
   
To wind up a company in UAE, cancellation of business license is necessary and detailed regulations and procedures to liquidate the company varies and depends on respective Emirates or Free Zone. The liquidation process normally involves selling of business assets, collecting receivables and then out of these collections and sale proceeds, repayment of debt and business obligation is made. Once all debts and business obligations are paid, remaining amount is to be distributed among the shareholders.
Our experts at VA, can assist you in all the proceedings of liquidation including audit whether the Company/Entity is registered in any Emirate in mainland or any of Free Zones in UAE.
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We’re always on the same page with Government Agencies, working together to get the job done!

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We’re always on the same page with Government Agencies, working together to get the job done!

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FAQs

Accounting Services in the UAE

The liquidation process in UAE involves settling all debts, notifying authorities, cancelling licenses, and distributing remaining assets among shareholders. Depending on your business type (Free Zone, Mainland, or Offshore), specific procedures and approvals from the Ministry of Economy or relevant Free Zone authority are required.

How long does company liquidation take in UAE Free Zones versus Mainland?

Free Zone liquidation typically takes 2–3 months, as the Free Zone authority manages approvals internally. Mainland company liquidation can take 4–6 months, as it involves multiple government departments, including Ministry of Economy, Ministry of Finance, and labor authorities.

What documents are required to start the liquidation process in UAE?

Essential documents include:

  • Trade license and commercial registration
  • Shareholder resolution approving liquidation
  • Passport copies of shareholders
  • Audited financial statements and VAT filings
  • Clearance letters from authorities (if applicable)
Can I liquidate my UAE company if I have outstanding debts or unpaid VAT?

Yes, but all debts, including VAT obligations, must be settled before completing liquidation. Authorities may require clearance certificates to ensure compliance, and unresolved debts can delay or block the process.

What are the tax implications, including corporate tax and VAT, during company liquidation?

Corporate tax and VAT liabilities must be fully settled. Any unpaid taxes are prioritized during asset distribution, and failure to comply can result in fines, penalties, or personal liability for company owners.

How are shareholders’ assets and investments affected in the liquidation process?

After settling debts, remaining assets are distributed proportionally to shareholders based on their ownership. Proper documentation ensures fair distribution, protecting shareholder rights and avoiding disputes.

How does liquidation affect ongoing contracts or agreements with suppliers and clients?

Contracts and agreements may need termination or transfer before liquidation. Failing to address them can result in legal disputes, penalties, or obligations to continue service even after the company closes.

How can I protect myself from personal liability during the liquidation of my company?

Ensure all company debts, taxes, and obligations are fully settled. Maintaining proper records, following legal procedures, and engaging professional accountants or legal advisors minimizes personal liability risks.

Can I close my UAE company without physically visiting the authorities?

In many Free Zones, online applications and authorized representatives can handle the liquidation process. For Mainland companies, some steps may require physical presence, but professional consultants can facilitate most procedures remotely.

What are common mistakes that delay or complicate company liquidation in UAE?
  • Not settling VAT or corporate tax liabilities
  • Missing or incomplete documentation
  • Ignoring employee visas or labor clearance requirements
  • Failing to address ongoing contracts or obligations
    Avoiding these errors ensures a smooth, timely liquidation process.

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Our Locations

Office - Dubai

Office 609, 6th Floor, Al Moosa Tower 1, Trade Centre 1, Sheikh Zayed Road, Dubai, UAE

Office - Sharjah

Sharjah Media City (Shams),   Al Messaned,  Al Bataeh,    Sharjah, United Arab Emirates.