Ultimate Guide to Liquidation in Dubai (2026): What You Need to Know

Business setup in UAE can provide you with a lot of opportunities, but there may come a time when you will have to close your business because of circumstances like a change in market conditions, restructuring of your operations or even if you have decided that it is time for you to exit the business.  

Liquidation in Dubai provides a method to legally close down your company while still safeguarding the owners, employees, and creditors of the company.  
 

This guide explains Business liquidation, covering the liquidation process in UAE, legal framework, costs, timelines, and key compliance requirements, based on UAE federal laws and best-ranking competitor practices.  

What is company liquidation in Dubai?  

Liquidation of a company is a formal/legal action taken to terminate the business through the selling off remaining assets, repaying creditors, and deregistering the company with the respective government Authorities. Once complete, these will result in: 

Liquidation procedures will follow UAE Federal Law Cabinet Decision 109 of 2023; liquidator appointed by the Ministry of Economy, the Directorate of Department of Economy & Tourism (DET/DED), The Authorities from Free Zones, Federal Tax Authority. 

Types of Business Liquidation in UAE  

Businesses in the UAE may undergo business liquidation under the following categories: 

Liquidation is initiated by shareholders or directors when:  

Company liquidation in Dubai can be done due to the directions of the court when:  

The Administrative Company dissolution in Dubai can be done by the appropriate governmental authority is based on:  

What Documents Are Needed for Company Liquidation in Dubai? 

To initiate the liquidation process in UAE, a few primary documents are required to begin approvals with the relevant authorities: 

 
In addition to these primary documents, further approvals and supporting documents may be required depending on the company’s jurisdiction, business activity, tax status, and compliance history.  

A licensed and approved liquidator will assess the company’s structure and guide you through the complete documentation required for a smooth and compliant liquidation process. 

Why Do Companies Go into Liquidation? 

How to Liquidate a Company in Dubai (Step-by-Step)  

The procedure for Business Liquidation in Dubai must be understood to prevent potential penalties and delays.  

Step 1: Shareholder Resolution  

To officially liquidate your business, shareholders must approve a resolution, and that resolution must be notarized and attested if any shareholders are outside the UAE.  

Step 2: Appointment of a Licensed Liquidator  

Engaging a licensed liquidator is mandatory for most Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs). The liquidator will manage the collection and sale of your company's assets, ensuring that all debts are paid in full, and will create the final accounting report. 

Step 3: Notify Authorities  

Once the resolution is approved and the liquidator is appointed, the documents must be submitted to the Department of Economic Development (DED) or to the appropriate Free Zone Authority, along with the application for provisional liquidation. 

Step 4: Publish Liquidation Notice  

A liquidation notice must be published in two Arabic and English local newspapers. The notice must remain active for at least 45 days, during which time any creditor may notify the liquidator of their claim. 

Step 5: Settle Liabilities  

As part of the settlement of financial obligations, you must cancel all visas and labor cards for employees and their families, pay any end-of-service benefits due, clear any outstanding supplier dues or loans and close all corporate bank accounts and obtain closure letters. 

Step 6: Tax & Compliance Clearance  

It is necessary for the liquidator to complete VAT de-registration with the Federal Tax Authority (FTA), final VAT and/or corporate tax return filings, and any duties owed to customs, utility or telecom providers, and lease payments owed.  

Step 7: Final Liquidation Report & Deregistration  

Once the liquidation process has ended, the liquidator must provide a final accounting report or Statement of Affairs. After the trade license has been cancelled, your business will be officially deregistered. 

This completes the winding up process UAE and business Deregistration Dubai.  

What is the Cost of Company Liquidation in UAE?  

The costs of company liquidation in UAE vary depending on the complexity of the business (e.g., number of employees, current liabilities, etc.) and will ultimately be determined by where the company is registered (i.e., the Company's Jurisdiction). 

The liquidation of a business operating on the mainland involves multiple phases of approval; however, businesses operating in Free Zones have their liquidation processes regulated through the applicable regulatory authority. 

Liquidation services Dubai free zones can take much less time than through the mainland; however, liquidating in both locations requires full compliance and formal de-registration of the business. 

Tax & AML Compliance During Liquidation  

The following is a breakdown of how businesses liquidation in UAE are still required to comply with UAE regulations while going through the liquidation process: 

Failure to comply with can result in fines, delays, and future business restrictions.  

Who Gets Paid First During Company Liquidation?  

The legal hierarchy of creditors during company dissolution Dubai is as follows:  

Employee dues are classified as the highest priority under UAE Labour Law. 

Where Is Your Company Registered? 

The liquidation process in Dubai depends on where your company is registered. 

Each jurisdiction has different processes, timelines, and compliance requirements. Choosing the correct liquidation procedure based on your company’s registration helps avoid delays, penalties, and future liabilities. 

As Approved liquidators, we handle company liquidation across mainland, free zone, and offshore jurisdictions in the UAE, ensuring a smooth and compliant closure. 

Why Professional Liquidation Services in Dubai Matter? 

Professional liquidation services in Dubai help you:  

Trusted Liquidation Services in Dubai by AMCA 

Planning company liquidation in Dubai? 

AMCA is an approved liquidator handling compliant closures across JAFZA, DAFZA, DMCC, DIFC, DSO, SRTIP, HAMRIYAH, SAIF ZONE, RAKEZ, IFZA, MEYDAN, and ALL MAINLAND AUTHORITIES, without future risk. 

Connect with AMCA today for a compliant and stress-free business exit. 

Call Us: +97142408784 

Email Us: info@amcaauditing.com 

FAQs: 

Company dissolution Dubai refers to the final legal termination of a company after all obligations are cleared, and authorities remove it from official records. 

The Winding up process UAE involves settling liabilities, distributing assets, and completing legal formalities before the company is officially closed. 

Business deregistration Dubai is complete once the trade license is cancelled, and the company is officially removed from government registries. 

A Mainland company shutdown is the closure of a mainland-licensed business after obtaining approvals, clearing obligations, and cancelling the license.