Company Closure in IFZA Free Zone | Step-by-Step Liquidation Guide

Thinking of a company closure in the IFZA Free Zone? Whether you’re shifting strategies, relocating or closing due to performance reasons, knowing the exact liquidation process can save you from fines and wasted time. Here’s a complete, straightforward breakdown to help you close your IFZA company correctly and stress-free.

1. Introduction

Company closure in IFZA Free Zone isn’t as daunting as it sounds if you follow the rules. The IFZA (International Free Zone Authority) in Dubai is known for its efficiency and flexible business setup options. But when it’s time to move on, relocate or exit the market, you must follow IFZA’s specific liquidation procedures. Treat this as your essential guide to wrap things up legally, easily & without leaving loose ends.

2. Types of Company Closure in IFZA

Company closure in the IFZA Free Zone can happen in two ways:

• Voluntary Liquidation: Initiated by the company’s shareholders when they decide to stop operations.
• Involuntary Liquidation: Rare, but may occur if IFZA intervenes due to non-compliance, unpaid fees, or legal issues.

Applicability covers:

• IFZA Limited Liability Companies (LLC)
• Branches of foreign entities
• Sole establishments

3. Why Businesses Close in IFZA

Let’s be honest, there’s no single reason behind a company closure in the IFZA Free Zone. Sometimes it’s strategy, sometimes it’s survival. Common reasons include:

• Shifting the company’s focus or business model
• Moving operations to the mainland UAE or another free zone
• Underperforming business or low profitability
• Ownership changes or restructuring
• Deciding not to renew the business license

Liquidation simply means legally dissolving a business registered under IFZA. This ensures that all financial and regulatory obligations are settled before the entity is removed from the trade register.

4. IFZA Company Closure Process

Here’s how to go about company closure in IFZA Free Zone step by step:

• Board Resolution / Shareholder Approval
  The directors or shareholders must officially decide and pass a resolution to close the business.
• Submission to IFZA
  File an application for license cancellation and liquidation with IFZA.
• Clearances Required-

IFZA’s No Objection Certificate (NOC)

Close company bank accounts

Cancel all employee visas (if applicable)

• Publication / Announcement
  IFZA may require a closure announcement in their internal system.
• Final Clearance
  Submit all required documents and obtain IFZA’s official closure confirmation.

5. Timeline Overview

Typically, a company closure in the IFZA Free Zone takes 4 to 6 weeks.
However, this can extend if there are:

• Pending resident visas
• Unsettled fines or dues
• Incomplete submission of documents

6. Authorities Involved in IFZA Closure

During the company closure in the IFZA Free Zone, multiple authorities may be involved:

• IFZA Licensing Department
• Ministry of Economy (if applicable)
• MOHRE and the Immigration Department for employee visa cancellation
• Banks for account closure
• Federal Tax Authority (FTA) for VAT-registered entities

7. Costs Involved in IFZA Company Closure

Item	Estimated Cost (AED)
IFZA License Cancellation Fees	Included in total
Visa Cancellation Fees	Variable (per employee)
Outstanding Fines or Penalties	Case-based
Liquidator Fees (if appointed)	Included
Arnifi’s Total Liquidation Service	AED 15,000

Normal Service – AED 15,000
Total – AED 15,000
Arnifi Price – AED 15,000 (All-inclusive)

8. Required Documents for IFZA Closure

Before applying for company closure in the IFZA Free Zone, keep these documents ready:

• Original IFZA trade license
• Shareholder resolution authorizing closure
• Copies of shareholders’ passports and Emirates IDs
• Bank clearance letter (NOC)
• Tenancy/NOC from landlord (if leased office space)
• Final audit or financial statement (if requested by IFZA)

9. Employee Considerations

When carrying out a company closure in IFZA Free Zone, employers must:

• Cancel all active employee visas under the company
• Settle full end-of-service benefits and pending salaries
• Respect contractual notice periods if applicable

10. Risks of Ignoring IFZA Closure Procedures

Skipping formal liquidation can lead to serious consequences:

• Continuous fines or late penalty charges
• Company name blacklisting by IFZA
• Restrictions on visa or license renewals for owners
• Legal liability for unresolved debts or contracts

11. How Arnifi Helps with IFZA Company Closure

Here’s the thing company closure in IFZA Free Zone is straightforward when done with expert assistance. Arnifi handles the liquidation end-to-end:

• Filing all IFZA paperwork and coordinating with relevant authorities
• Managing NOCs, bank closures & employee offboarding
• Ensuring all dues, fines & fees are cleared
• Completing the entire closure without delays or errors

Arnifi’s on-ground experience with IFZA ensures quick turnarounds and zero compliance slips.

12. FAQs

How long does it take to close a company in IFZA?
Usually, 4-6 weeks if all documents are in place.

Is hiring a liquidator mandatory for IFZA?
Not always, but IFZA might request one for LLCs depending on financial complexity.

Can I reopen the same company later?
Once liquidated, the trade license is canceled permanently. You’ll need to start a new registration.

What happens if I don’t officially close the IFZA company?
Unpaid renewals and licenses may lead to blacklisting or fines.

13. Conclusion

A proper company closure in IFZA Free Zone ensures you exit legally, maintain a clean record, and avoid unnecessary costs or fines. It’s a legal process, yes but with Arnifi guiding you, it’s an easy one.

Arnifi doesn’t just help with company closure in the IFZA Free Zone. Our services also cover company formation, visa assistance, license amendments & compliance in other UAE jurisdictions like Ajman, Meydan & RAKEZ.