Closing a UAE company isn't as simple as just stopping. You need to formally deregister to avoid accumulating fees, penalties, and visa issues. This guide covers the proper closure process for free zone companies.
Steps to Close
1. Board resolution to wind up. 2. Cancel all employee visas. 3. Cancel your own visa (if applicable). 4. Close bank accounts. 5. Submit deregistration to free zone. 6. Obtain clearance certificates. 7. Final FTA deregistration (corporate tax + VAT). 8. Receive cancellation certificate. Timeline: 1-3 months.
Costs
Deregistration fee: AED 1,000-5,000 (varies by zone). Visa cancellation: AED 500-1,000 per person. Final audit (if required): AED 3,000-10,000. PRO fees: AED 1,000-3,000. Outstanding penalties (if any). Total: AED 5,000-20,000 depending on zone and situation.
What If You Just Stop Paying?
Don't do this. Your license accumulates renewal fees + late penalties (AED 100-500/day in some zones). Visas become invalid, potentially creating immigration issues. Bank accounts may be frozen. You may be blacklisted from future UAE company formation. Outstanding debts can prevent re-entry to UAE.
Alternatives to Closing
Dormant company: some zones allow you to keep the license active at reduced fees. Transfer/sell: sell the company to another owner. Change activity: pivot to a different business under the same license. Downgrade: move to a cheaper zone (requires new setup).
Frequently Asked Questions
How long does it take to close a UAE free zone company?
Typically 1-3 months. The main delays are: visa cancellation processing (1-2 weeks per person), bank account closure (1-4 weeks), free zone processing (2-4 weeks). DMCC and JAFZA tend to take longer than newer zones.
What happens if I leave the UAE without closing my company?
The company continues to accumulate fees and penalties. Visas become invalid after 180 days out of UAE. You may face issues re-entering UAE. Outstanding debts could lead to legal action. Always formally close before leaving permanently.
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