Company Liquidation in Dubai & UAE | Legal Closure Guide 2025
Introduction
Company liquidation is the official process of closing a limited liability company or a sole proprietorship legally in Dubai and across the UAE. The process includes documenting the General Assembly meeting minutes, paying government fees, publishing the required notices, and obtaining the official cancellation certificate. This guide explains the essential steps, legal requirements, and necessary documents to ensure the liquidation process is completed efficiently, quickly, and without any penalties or legal complications.
What is Company Liquidation and Why It Is Needed
Company liquidation refers to the legal closure of a business, whether it is a limited liability company or a sole proprietorship. Companies may need to liquidate due to business closure, project completion, or financial reasons. Liquidation protects partners or business owners from future obligations and ensures compliance with UAE laws.
Documents Required for Company Liquidation
To complete the liquidation process legally in Dubai and UAE, you will need the following documents: - Copy of the trade license - Copy of the company’s Memorandum of Association - Copies of passports and ID cards of partners and managers - Copies of any powers of attorney (if applicable) - Any additional documents required by the Department of Economic Development
Steps for Liquidating Companies in Dubai and UAE
1. Documenting the General Assembly meeting minutes with a notary public 2. Submitting the liquidation request to the Department of Economic Development 3. Paying the required fees and publishing the legal notices 4. Waiting for a 35-business-day objection period 5. Cancelling all visas and completing all legal obligations 6. Obtaining the official cancellation certificate.
Government Fees and Costs
- Liquidation report and DED follow-up: AED 2,000 - Notarization of the General Assembly meeting minutes: AED 650 - Publication of the notice in the Economic Development newspaper: AED 770 - Issuance of the cancellation certificate: AED 70 - Penalty for not renewing the license: AED 200 per month
Tips to Avoid Mistakes and Penalties
- Ensure all required documents are submitted before filing the liquidation request - Stick to deadlines to avoid penalties - Hire a certified accountant or tax agent to streamline the process and prevent legal errors - Keep records of all transactions and official documents even after liquidation
Conclusion:
Company liquidation in Dubai and the UAE requires precision and legal expertise to ensure full compliance. By using Mongez’s services, companies and individuals can complete the liquidation process efficiently, avoiding penalties and future legal issues.