Closing a business in Dubai—whether a Mainland LLC or a Free Zone Entity—is a highly regulated, multi-stage legal process known as Liquidation. It involves much more than just canceling a license; it requires settling all financial obligations, obtaining multiple government clearances, and formally de-registering with the Federal Tax Authority (FTA). Failure to follow the exact procedure can result in fines, outstanding liabilities against shareholders, and being legally banned from future UAE operations.
FrankDigit Accounting Services acts as your appointed Licensed Liquidator, overseeing the entire process from shareholder resolution to the final issuance of the closure certificate. Our service ensures a legally clean break, completing all tax exits (VAT and Corporate Tax de-registration) and compliance filings with Confidentiality, Transparency, and Integrity (CTI).
Company Liquidation is the formal, legally mandated process of winding up a company’s affairs. It requires the appointment of a Licensed Liquidator (an approved audit or accounting firm) to sell assets, settle debts, and prepare a final report. This is required for most LLCs and is the most protective way to close a solvent business (Members’ Voluntary Liquidation, MVL).
Deregistration is a simpler, administrative cancellation process sometimes available for specific Free Zone or Sole Proprietorship entities, but it offers less liability protection than a formal liquidation supervised by a certified liquidator.
We manage the complexities of asset settlement, creditor notification, and mandatory government clearance checks.
| Delieverable | How FrankDigit Delivers |
|---|---|
|
Licensed Liquidator Appointment |
Acting as the officially Appointed Licensed Liquidator, filing the board resolution, and providing the required acceptance letter to the licensing authority (DED/FZA). |
|
Asset & Liability Settlement |
Managing the valuation and sale of assets, debt settlement with creditors, and preparing the mandatory Statement of Affairs. |
|
Tax De-registration (FTA) |
Mandatory de-registration for VAT (within 20 business days of ceasing activity) and Corporate Tax with the FTA on the EmaraTax portal, ensuring no future liabilities. |
|
Government Clearances |
Obtaining “No Objection Certificates” (NOCs) from all required authorities: Immigration, Labour (MOHRE), Customs, DEWA/Utility providers, and the Bank (Bank Account Closure Letter). |
|
Final Liquidation Audit Report |
Preparation and submission of the final, legally required Liquidator’s Report to the licensing authority (e.g., DED, DMCC) to obtain the final closure certificate. |
Failure to complete the winding-up process correctly and on time exposes shareholders and directors to ongoing penalties and personal liability.
For Mainland LLCs, the liquidator is legally required to publish a public notice in two local newspapers (Arabic and English), initiating a 45-day grace period for any creditors to lodge claims. We manage this process, ensuring all liabilities are correctly settled before proceeding to the final stage, thereby protecting shareholders from future debt claims.
Failing to de-register a tax account is considered non-compliance, even if the trade license is cancelled. The FTA imposes a fixed penalty of AED 10,000 for late VAT de-registration and additional fines for late CT de-registration. We manage this process immediately after all business activity ceases, ensuring all firm cards and partner/employee visas are correctly canceled, providing a clean exit confirmed by the Deregistration Certificate.
We manage every legal, financial, and tax step to ensure a final, compliant business closure.
- Decode (Liquidator Appointment): We initiate the process with the shareholder resolution, secure our official appointment as the Licensed Liquidator, and immediately begin the visa and establishment card cancellation process.
- Simplify (Clearance & Settlement): We handle all debt negotiation, obtain required NOCs from utilities and government departments, publish the mandatory newspaper notice, and manage the full 45-day claim period.
- Automate (Final Submission): We prepare the Final Liquidator’s Report, secure the Bank Account Closure Letter, file for VAT/CT Deregistration with the FTA, and submit the final package to the licensing authority to obtain the final License Cancellation Certificate.
Ready for a legally sound exit from the UAE market? Avoid fines and future liabilities.
📞 Contact FrankDigit Accounting Services today for expert Company Liquidation & Deregistration.