Closing a business is as important as starting one. Company liquidation in Dubai is a necessary legal procedure that ensures you close your business properly, avoiding any future fines or legal liabilities. Whether the decision is voluntary due to a change in investment plans or mandatory, following the correct steps ensures peace of mind.

This comprehensive guide from Tdabeer explains in detail the steps, costs, and documents required to cancel your trade license in Dubai for 2025.

Why Can’t You Simply Stop Operating?

Neglecting to renew your trade license does not mean it is cancelled. This leads to the accumulation of fines against you personally as the company owner, and you may face travel restrictions or difficulties in setting up any future businesses in the UAE. Therefore, Therefore, legal liquidation is the only option to protect your interests.

Steps for Company Liquidation on the Mainland

The process involves two main phases:

Phase One: Dissolution Resolution and Appointing a Liquidator

1. Prepare the Partners’ Resolution: The partners must hold a general assembly meeting to document the decision to dissolve the company and appoint a certified legal liquidator.
2. Submit the Cancellation Application: The partners submit the initial cancellation request to the Department of Economy and Tourism (DET) along with the partners’ resolution and the liquidator’s acceptance letter.
3. Newspaper Advertisement: Next, the liquidator publishes an announcement about the company’s liquidation in two local newspapers (one in Arabic and one in English) to give creditors 45 days to submit any claims.

Phase Two: Obtaining Final Clearances

1. Cancel the Establishment Card: Obtain clearance from the Ministry of Human Resources and Emiratisation and the Federal Authority for Identity and Citizenship.
2. Obtain Clearances from Service Providers: Such as the Dubai Electricity and Water Authority (DEWA) and telecommunication companies.
3. Prepare the Final Liquidation Report: The advertisement period lasts for 45 days. After it ends and if there are no claims, the liquidator prepares their final report.
4. Obtain the Cancellation Certificate: Finally, you submit the liquidator’s report and all clearances to the DET to obtain the final license cancellation certificate.

Tdabeer: We Make the Closing Process Easy and Safe

Liquidation procedures can seem complex and lengthy. However, at Tdabeer, we handle the entire process for you, from preparing legal documents and appointing a liquidator to following up with all government entities, ensuring your company is closed legally and quickly. This saves you time and effort and helps you avoid any complications.

Frequently Asked Questions

How long does the company liquidation process take in Dubai?

The process typically takes two to four months, depending on the speed of obtaining clearances from various entities.

What is the cost of company liquidation?

The cost varies significantly. Specifically, it includes the legal liquidator’s fees, advertisement costs, and government fees. The total cost can start from AED 10,000 and may increase.

Are the cancellation procedures different in free zones?

Yes, each free zone has its own procedures for license cancellation, but they generally follow the same principle (dissolution resolution, obtaining clearances, then final cancellation).

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