How to Liquidate Mainland Company in Dubai?
Step-by-Step Guide to Liquidating a Mainland Company in Dubai Mainland
Liquidating a mainland company in Dubai is a structured process that involves multiple government departments, legal notices, and financial clearances.
Step 1: Pass a Shareholder Resolution
For civil and LLC companies, the process starts with a resolution signed by all shareholders or partners confirming the decision to liquidate the company. This resolution must:
- Be printed on company letterhead
- Be signed by all authorized parties
- Be notarised by a public notary in Dubai
In the case of a sole establishment, the owner can proceed without this resolution, but they still need to notify DET of their intent to close the business.
Step 2: Appoint a Licensed Liquidator
You must appoint a licensed liquidator who is approved by DET. The appointment letter should be issued on the liquidator’s official letterhead and signed and stamped. The liquidator’s name and license number will be included in all future correspondence and documents, including the final liquidation report.
Step 3: Submit Initial Documents to DET
You’ll need to submit the following documents to open your liquidation file with DET:
- Shareholder resolution to liquidate the company
- Liquidator appointment letter
- Copy of valid trade license
- Passport copies of all shareholders
- Emirates IDs of shareholders (if applicable)
Once submitted, DET will issue a pre-approval to proceed with the liquidation process.
Step 4: Publish the Newspaper Announcement
Within two working days of pre-approval, the liquidator must publish a notice of liquidation in two local Arabic newspapers. This is a public notice that gives creditors 45 days to come forward with any claims.
This step is legally required to protect the rights of third parties and prevent disputes later on.
Step 5: Clearance from Government Entities
During or after the 45-day notice period, you must obtain clearance letters from:
- Dubai Electricity and Water Authority (DEWA) to confirm no outstanding bills.
- Telecom providers (Etisalat or du) confirming disconnection and payment.
- Ministry of Human Resources and Emiratisation (MOHRE) to confirm all employment visas are cancelled.
- General Directorate of Residency and Foreigners Affairs (GDRFA) clearance for cancellation of residence visas and immigration files.
- Federal Tax Authority (FTA) processes for VAT-registered companies, including filing the final return and completing VAT de-registration.
If you have a tenancy contract or Ejari certificate, ensure that your lease is cancelled and that all payments to your landlord are settled.
Step 6: Settle Debts and Close Bank Accounts
All outstanding financial obligations must be settled before you can move forward. This includes:
- Supplier payments
- Bank loans or credit card balances
- Employee gratuities and pending salaries
- Government fines or penalties
Once complete, close your company’s bank accounts and collect closure confirmation letters from the banks.
Step 7: Submit the Final Liquidation Report
After the 45-day notice period and once all clearances are received, the liquidator will issue a final liquidation report. This document confirms that all assets have been accounted for and that there are no pending claims or debts.
The report, along with all clearance certificates and supporting documents, must be submitted to DET for review.
Step 8: Cancel the Trade License and De-register the Company
Once the final report is approved, DET will issue a license cancellation certificate. This is the official confirmation that the company has been de-registered and is no longer active in Dubai.
You may also receive final correspondence from the FTA and immigration departments confirming the business closure in their systems.
Timeframe and Cost Estimates for Company Liquidation in Dubai Mainland
- Timeframe: On average, the process takes 60 to 90 days, depending on how quickly clearances and newspaper publication are handled.
- Cost: Varies depending on the type of company, liquidator fees, newspaper ad costs, and any government fines or pending dues.
