How to Close Your Ajman Free Zone Business | Free Zone Liquidation Guide

Legal closure frees your Ajman Free Zone business from penalties or visa fines and gives you a clear way out. Know the broad and complete liquidation process, necessary documentation, costs, and deadlines. Get expert help through Arnifi for a smooth and compliant transfer of Ajman Free Zone business closure and license cancellation.

1. Introduction

Ajman Free Zone (AFZ) is one of the most entrepreneurial zones in the UAE, with inexpensive setup costs, 100% foreign ownership, and direct access to key Gulf markets. Most entrepreneurs set up an Ajman free zone business to avail flexible regulations and quick licensing. Not all businesses live forever; at some point, they need to legally shut down operations.

Business closure or business liquidation, whether it is caused by market shifts, personal reasons, or redirection of the strategy for the firm, is a normal phase that can be faced by every entrepreneur. The process of liquidating an Ajman free zone business is covered in this guide, which includes how to cancel your license, clear obligations, and officially exit without penalties.

2. What Does Company Liquidation Mean in Ajman Free Zone?

Company liquidation means formally terminating your business entity and cancelling its trade license with the Free Zone Authority. It is the legal closure of your business under the Ajman Free Zone.

Here’s how the terms differ:

• Business Closure:  A generic term that denotes closure for business operations
• License Cancellation: Administrative action for the unactivation of the trade license
• Liquidation: Complete legal process of jewelry company closure, along with settlement of obligations and removal from the official register

Proper liquidation ensures you:

• Avoid fines and blacklisting by immigration or the authorities
• Prevent the overstay penalty on shareholders and employees
• Close bank accounts and contracts with the business legally

3. Types of Ajman Free Zone Business Closure

Ajman Free Zone has two major types of business closures:

• Voluntary Liquidation: Initiating the closure of the business by the will of the owner or shareholders according to their intention. This is often the most used and easiest way, as long as obligations are cleared.
• Involuntary (Forced) Liquidation: It occurs when the business has not renewed its trade license, dues are outstanding, or it violates regulations. Then at the free zone authority, it will be stopped.

Procedures are a bit different according to the company type:

• FZE (Free Zone Establishment): Single shareholder company; easier to liquidate
• FZCO (Free Zone Company): Multiple shareholders; requires board resolution for closure
• Branch Office: Needs further approvals from the parent company and relevant authorities

4. Step-by-Step Process for Ajman Free Zone Business Closure

Important steps that must be followed in liquidating your Ajman Free Zone business:

1. Board Resolution / Owner Decision Letter

Create a written resolution or decision signed by the shareholders confirming the intent to liquidate the company.

2. Appoint a Liquidator (if required)

Some forms of legal entities require appointing a registered liquidator authorized by the Ajman Free Zone Authority (AFZ). The liquidator issues a formal report at the end of the process.

3. Clear Outstanding Payments & Utilities

Clear all dues with AFZ, utility providers (electricity, telephony), and landlords. Obtain clearance certificates verifying zero dues.

4. Cancel Employee & Investor Visas

There should not be any visas associated with the company that are still active, which includes those of the employees, partners, and investors, before proceeding with the next steps.

5. Close Corporate Bank Account

Place your request with the bank to close the account. Keep the confirmation letter for the final submission to AFZ.

6. Apply for License Cancellation / Liquidation Request with AFZ

Submit a liquidation request through the AFZ customer portal or directly by visiting them. It should bear the required attachments and relevant fees.

7. Receive Final Clearance Certificate

After reviewing the documents, AFZ will issue a final clearance or license cancellation certificate, marking the official closing of your business.

Quick Checklist:

• Board resolution or closure decision
• Liquidator appointment (if applicable)
• Visa cancellations complete
• No dues with AFZ and utilities
• Bank account closed
• Clearance certificates attached

5. Documents Required for Ajman Company Liquidation

Here’s what you’d need to prepare before starting:

• Copy of a valid trade license
• Establishment card (either by AFZ or MOHRE)
• Shareholder(s) passport copies
• Emirates IDs (for UAE residents)
• Proof of visa cancellation for all employees and investors
• No objection certificates (NOCs) from any other relevant government entity (if necessary)
• Clearance letters from utility and telecom providers
• Clearance in the office/warehouse lease from the landlord

Prepare for both physical and digital submission.

6. How Much Does It Cost to Close an Ajman Free Zone Business?

The cost to close an Ajman Free Zone business is dependent on several factors, such as the type of company, obligations due, and whether you are required to hire a liquidator. Typical cost for Ajman Liquidation as per Arnifi’s website, as shown in the picture, is roughly AED 16,460. This price includes the standard liquidation procedures, document submissions, and coordination with the Ajman Free Zone Authority.

However, other requirements may affect additional costs and include:

• Cancelling visas and labor cards for employees or investors
• Settling any unpaid rent, utilities, or telecom bills
• Hiring an external certified liquidator (if required for your type of company)

While some smaller single-owner companies can get away with less, other companies with more shareholders or pending dues can charge extra.

For customized and precise estimates based on your business structure, please consider reaching out to Arnifi. They promise to offer transparent pricing for Ajman Freezone liquidation while managing everything from A to Z for your business closure.

7. How Long Does the Liquidation Process Take?

Generally, the Ajman Free Zone business liquidation takes anywhere between 1 and 4 weeks, according to:

• Whether documents are all in order
• Any outstanding payment or fines with the AFZ
• Number of visas that need cancellation

If obligations are cleared in time, the closure can be done within a week. Students seem to be delayed in case of pending dues or missing clearances.

8. Common Mistakes to Avoid When Closing an Ajman Free Zone Business

• Not cancelling residence or employee visas can give rise to immigration fines and/or prohibitions
• Keeping corporate bank accounts open can pose compliance problems later down the line
• Not appointing liquidators (when required) means that you have an invalid deed
• Not formally closing a company may blacklist you from practicing any business activity in the UAE systems in the future

If nothing else, stick to the AFZ official liquidation procedure to ensure a clean and penalty-free exit.

9. Can I Reopen or Start a New Ajman Free Zone Business Later?

Yes. The closure of your present company does not bar you from starting any business in Ajman Free Zone or anywhere else in the UAE in the future.

A new trade license can be obtained at any time after the clearance of all prior obligations. If a speedy re-registration within AFZ or in another emirate is contemplated, a business setup consultant’s advice should be taken.

10. Need Help with Ajman Free Zone Liquidation?

In case of any paperwork-related confusion or if you would prefer professional help, Arnifi will guide you through every step of the Ajman Free Zone business closure process. Our team quickly and efficiently takes care of handling all document submissions, visa cancellations, clearances, and coordination with AFZ authorities.

To ensure the smooth, cost-effective, and 100% UAE-regulated path of your business liquidation in Ajman, reach out to Arnifi today.

11. FAQs

Q1. Can I liquidate an Ajman company online?

Yes, liquidation requests may be placed on the Ajman Free Zone digital portal; however, original documents will need to be submitted ultimately for verification.

Q2. Do I need to visit the UAE to close my company?

Not necessarily. If you authorize a representative or business consultant with the power of attorney, the representative can act and finish the process on your behalf.

Q3. What happens if I don’t cancel my license?

Use of the cancellation will recreate yearly renewal fees, thereby putting one in the position of being blacklisted and facing immigration penalties.

Q4. Can I liquidate without clearing debts?

All dues, including those of the AFZ, banks, and service providers, have to be paid before license cancellation is done officially.

12. Conclusion

With correct procedures, closing any Ajman Free Zone business does not need to be arduous. In the course of proceeding through liquidation steps correctly, from visa cancellations to clearance of dues, you protect your own record and generally avoid future penalties.

Instead of abandoning your business, take the legal route to close it with confidence and keep open your eligibility for future opportunities in the UAE. Look no further than Arnifi if you are looking for professional assistance; we are your trusted Ajman Free Zone business setup and liquidation partner.