Guide · Company Closure
How to Close a UAE Free Zone Company
Closing a UAE free zone company is more involved than most founders expect. Done in the wrong order, it creates fines, blacklisting, or stranded bank balances. This guide covers the correct sequence, typical costs, and the common mistakes that delay closure by months.
Why closing order matters
UAE authorities process cancellations in a strict sequence. If you cancel your trade licence before cancelling employee visas, you will have unlawful visa holders. If you close your bank account before receiving the liquidation certificate, you cannot transfer remaining funds. The order below is the correct one.
Step-by-Step Closure Process
Cancel all employee and dependant visas
Who
PRO (Public Relations Officer) or company director
Time
1–5 business days per visa
What
Each employee and family member visa must be cancelled at the relevant immigration authority before the trade licence can be cancelled.
Typical cost
AED 100–300 per visa (cancellation fee) + AED 500–1,000 agent fee if using a PRO
"Out-of-status" employees (those who have already left UAE) must cancel via an authorised representative — they cannot overstay and then cancel.
Deregister from MOHRE (Ministry of Human Resources)
Who
Company director or PRO
Time
1–3 business days after visa cancellations confirmed
What
Cancel the company's labour card / employer registration with MOHRE.
Typical cost
AED 0 (government service, included in prior visa cancellation if done via MOHRE portal)
Cancel investor / partner visas
Who
Each visa holder directly (or representative)
Time
1–5 business days
What
The company owner(s) must also cancel their own investor visas. This requires an exit stamp if remaining outside UAE, or in-person cancellation if in UAE.
Typical cost
AED 100–300 per investor
Once your investor visa is cancelled, you can no longer legally reside in UAE on that visa. Plan your departure or alternative visa before cancellation.
Cancel Emirates IDs
Who
Federal Authority for Identity and Citizenship (ICA)
Time
Same day as visa cancellation (linked process)
What
Each person whose visa is cancelled should also cancel their Emirates ID.
Typical cost
AED 0–100
Obtain a No Objection Certificate (NOC) from the free zone
Who
Company (apply to the free zone authority)
Time
3–10 business days
What
Confirm to the zone that all staff visas are cancelled, no outstanding fines, and the company is ready to deregister.
Typical cost
Varies by zone — AED 500–2,000
Some zones require a chartered accountant's report or audited accounts for this step, especially if the company has been trading.
Appoint a liquidator (if required)
Who
Company director + licensed liquidator
Time
2–8 weeks
What
Some free zones (particularly DIFC, ADGM, and larger zones) require formal appointment of a licensed liquidator to wind up the company's affairs. Smaller zones with simpler structures may skip this for non-trading companies.
Typical cost
AED 5,000–25,000 for a licensed liquidator (varies enormously by firm and complexity)
DIFC and ADGM have formal insolvency regulations. Non-trading holding structures are much simpler to close than operating companies with creditors.
Receive Liquidation / Deregistration Certificate
Who
Issued by free zone authority
Time
5–15 business days after all prior steps complete
What
The formal document confirming your company has been deregistered. This is the key document needed for bank account closure.
Typical cost
AED 0–500 (government fee)
Close the corporate bank account
Who
Company director (in-person visit usually required for final closure)
Time
1–10 business days from liquidation certificate presentation
What
Present the liquidation certificate to the bank and request account closure. The bank will transfer any remaining balance to a designated personal account.
Typical cost
AED 0 (no closure fee, but some banks charge minimum balance fees if balance drops below threshold during the process)
Some banks hold a portion of the balance for 30–60 days after account closure for outstanding direct debits or chargebacks. Ensure all standing orders and scheduled payments are cancelled before initiating closure.
Total Timeline Summary
Estimated duration per stage
Cost Summary
Typical costs (AED)
Costs vary by zone, number of visa holders, and whether the company has been actively trading.
Common Mistakes to Avoid
Cancelling the trade licence first
You must cancel all visas before cancelling the licence, or you will have unlawful visa holders.
Closing the bank account before getting the liquidation certificate
You will need the certificate to request closure; without it, the bank may not release funds.
Forgetting dependant visas
Family members on your investor visa sponsorship must also be cancelled separately.
Outstanding fines and penalties
Unpaid MOHRE fines, zone fines, or overdue renewal fees must be settled before the NOC is issued. Run a check before starting.
Assuming the process is instant
Even simple solo-founder closures take 6–10 weeks minimum. Plan your tax residency and banking exit accordingly.
Thinking About Switching Instead?
If you are closing because of cost, banking, or activity issues — switching may be cheaper and faster than closing and reopening elsewhere.
Need help closing your company?
Still have questions about closing your company? Our advisors handle UAE free zone closures.
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