Closing a company in the UAE isn’t just about stopping operations — it’s a legal process that must be handled carefully to avoid penalties, immigration issues, or future bans. Whether you are a partner, investor, or business owner, understanding how to legally liquidate a company in the UAE and manage related visa cancellations is crucial.
At Al Tawkel Center, we help you handle your company liquidation and visa procedures step-by-step — ensuring compliance with UAE laws while saving you time and stress.
Understanding Company Liquidation in UAE
Company liquidation refers to the formal closure of a company’s legal existence. It is a process where all business operations are stopped, debts are settled, and assets are distributed to shareholders. Once liquidation is complete, the company’s trade license is cancelled, and it ceases to exist legally.
There are two main types of company liquidation in the UAE:
- Voluntary Liquidation – When shareholders decide to close the business.
- Compulsory Liquidation – When authorities enforce closure due to non-compliance, debt, or inactivity.
Both types require proper legal documentation and government approvals, which can differ between Mainland and Free Zone companies.
Legal Procedure for Company Liquidation in the UAE
The UAE government has clear guidelines for company closure to ensure all dues are settled properly. Here’s a simplified step-by-step process:
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Pass a Board Resolution
Shareholders must agree in writing to liquidate the company and appoint a licensed liquidator.
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Appoint a Certified Liquidator
A licensed liquidator issues an official liquidation letter confirming their appointment.
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Cancel the Company’s Trade License
Submit the liquidation documents to the relevant authority:
- Mainland: Submit to the Department of Economic Development (DED)
- Free Zones: Submit to the respective Free Zone Authority
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Clear All Dues and Penalties
Settle:
- Utility and rent bills
- Immigration and labour fines
- Employee end-of-service benefits
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Advertise the Liquidation Notice
Publish the company’s liquidation notice in local newspapers for 45 days to allow any creditors to raise claims.
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Obtain Clearance Certificates
Collect NOCs and clearance certificates from:
- Ministry of Human Resources & Emiratisation (MOHRE)
- Federal Tax Authority (FTA)
- Immigration & Emirates ID
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Cancel All Visas
Cancel employee, partner, and dependent visas under the company’s sponsorship.
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Submit Final Liquidation Report
Once all dues are cleared up and certificates obtained, the liquidator issues a final report, and the business license is officially cancelled.
Visa Implications After Company Liquidation
When your company is liquidated, all visas issued under it — including partner, investor, and employee visas — automatically become invalid. You must cancel or transfer these visas before the company is completely closed.
Here’s what happens:
- Partner/Investor Visa: Must be cancelled once the company trade license is cancelled.
- Dependent Visas: Family visas (spouse, children, etc.) must be cancelled before the partner visa.
- Employee Visas: Must be cancelled by the employer before submitting the final liquidation report.
Failing to cancel visas before liquidation may lead to immigration fines or ban issues in future visa applications.
Tip: If your company liquidation is in progress and you are unsure of the visa steps, contact Al Tawkel Center — we can assist with visa cancellations, status updates, and overstay fine reductions.
Checklist for Business Owners After Liquidation
Before officially completing the process, ensure the following:
- All company bank accounts are closed
- All employee visas are cancelled
- MOHRE and FTA clearances are obtained
- Company’s trade license is cancelled
- Emirates ID linked to your investor visa is surrendered
Neglecting any of these can delay your liquidation process or result in extra fines.
Common Challenges in Company Liquidation
Many business owners face issues such as:
- Missing documents (trade license, MOA, NOC)
- Pending labour fines or Emirates ID dues
- Confusion on visa sequence (partner vs dependent)
- Overstay fines due to delayed cancellation
If you face any of these problems — don’t worry.
Al Tawkel Center can handle your liquidation and visa procedures from scratch, even if you don’t have the complete documents.
Why Choose Al Tawkel Center?
With years of experience assisting investors, families, and employees in the UAE, Al Tawkel Center provides:
- Fast & reliable liquidation support
- Visa and immigration documentation handled by experts
- Assistance with fine reduction and overstay resolution
- Legal typing, PRO services, and translation support
We ensure smooth, transparent, and legal completion of your company closure and visa cancellations — all in one place.
Need Assistance?
If you are closing your business or facing challenges with partner visa cancellation, dependent visa removal, or overstay fines,
Call Al Tawkel Center at 058 834 1980
or
Request a free consultation via our website Al Tawkel Center.
Our team will guide you step-by-step through every document, clearance, and visa procedure — stress-free.