Company Closure in Dubai | Your Complete Guide to Dubai Mainland Liquidation

When you’re considering company closure in Dubai, the route you’ll most often take is a Dubai Mainland Liquidation. In fact, in many cases, the first step you’ll take is initiating the liquidation of your mainland company. So you need to grab your documents, also get a trusted advisor on board & follow the roadmap below. What this really means is you’re not just shutting down but you’re doing it properly, so you’re not burdened by any liabilities later.

1. What is Dubai Mainland Liquidation?

When we talk about company closure in Dubai, we mean the formal termination of operations of a business in this region, which includes winding up of assets, cancellation of licenses, visas, and deregistering the entity. One specific route is Dubai Mainland Liquidation, which applies when your company is registered on the mainland, i.e., not in a free zone.

• The term Dubai Mainland Liquidation refers to the process of closing a company registered under the mainland jurisdiction
  
• Company closure in Dubai covers both mainland and free-zone cases, but the procedures differ. Here, we focus on Dubai Mainland Liquidation.

2. When to Opt for Dubai Mainland Liquidation?

Here are the eligibility criteria when you’re doing a company closure in Dubai via Dubai Mainland Liquidation:

• When shareholders or directors have resolved to wind up the company through voluntary liquidation, or the company has reached a point where liquidation is required in this case, it is compulsory
  
• All outstanding liabilities, visas, employer obligations etc, should be resolved. You must be able to cancel sponsored visas, close accounts & obtain clearances.
  
• When you can appoint a liquidator and publish the required notice. Without that, you cannot proceed.
  

If you meet the above, then you can initiate the process of company closure in Dubai through Dubai Mainland Liquidation.

3. Estimated Cost for Company Closure

For a company closure in Dubai via Dubai Mainland Liquidation, costs vary depending on your size, number of employees, debts, and complexity. Here’s a rough estimate:

Note: These are estimates. Your case may cost more or less depending on the employees, complexity of assets, or debts.

4. How to Do Company Closure in Dubai Mainland Liquidation?

Here’s your step-by-step guide. Each bullet is important:

• Pass Shareholder/Board Resolution
  
  • Prepare a resolution, like minutes of a meeting, where shareholders/directors approve the liquidation
  • Notarise the resolution if required, especially if shareholders are outside UAE
    
• Appoint a Licensed Liquidator
  
  • Appoint a liquidator registered/licensed in UAE
  • Obtain a formal letter of acceptance from the liquidator
    
• Submit Initial Documents to Authority
  
  • Submit the resolution, liquidator letter, trade license copy, shareholder passports/IDs to the relevant authority (for the mainland, it will be the Department of Economy & Tourism or DED)
    
• Publish Notice of Liquidation in Newspapers
  
  • Publish in at least two Arabic newspapers, sometimes English and Arabic, which gives creditors notice
  • Provide 45 days for creditors to raise claims
    
• Clear All Obligations
  
  • Cancel all employee visas, labour cards & residency linked to the company
  • Obtain NOCs/clearances from utilities (e.g., DEWA), telecom (Etisalat/DU), banks (bank account closure), tenancy/lease, and customs if applicable
  • Deregister VAT/corporate tax if applicable
    
• Settle Debts & Close Bank Accounts
  
  • Pay off creditors, employee dues, and supplier invoices
  • Close company bank account(s) and get a closure letter
    
• Submit Final Liquidation Report & Documents
  
  • The liquidator prepares a final report detailing assets, liabilities, and confirms that no objections
  • Submit final documents (like clearances, report, etc.) to the authority for the issue of the final cancellation certificate
    
• License Cancellation and Deregistration
  
  • After everything is cleared, the trade license is cancelled and the company is deregistered. That completes the company closure in Dubai via Dubai Mainland Liquidation.

5. Timeline for Dubai Mainland Liquidation

What you can generally expect:

• It will take roughly 60 days or more from start to end if everything goes smoothly for a mainland company.
  
• Delays often happen due to outstanding debts, incomplete visa cancellations, and pending clearances.

6. Key Tips and What to Watch Out For

• Here, the thing is, if you’re missing a clearance or not cancelling the visas means the process will stall
• Ensure all employee visas are cancelled before submitting for final liquidation
• Document every step and keep the original proof of clearance that the authorities will ask for
• If the company has outstanding VAT/Corporate Tax obligations, those must be settled early
• If you skip publication of the notice, you’re exposed to future claims from creditors
• Working with an experienced professional (liquidator + legal advisor) can reduce risk and time

7. FAQs

Can I skip liquidation and just let the licence expire?
No, you must complete the Dubai Mainland Liquidation to avoid legal and financial issues.

What happens to the employees during the process?
All employee visas must be cancelled and final settlements cleared.

Are free-zone companies treated the same?
No, they follow a separate and usually simpler closure process.

Can I handle this myself without a liquidator?
It’s risky, but hiring a licensed liquidator ensures a smooth company closure in Dubai.

8. Conclusion

If you are planning a company closure in Dubai, choosing the right process matters. For a mainland-registered business, you’ll navigate a Dubai Mainland Liquidation by following the steps, clearing your obligations, publishing the notices, and submitting properly. It’s not just shutting down, it’s doing it clean.

If you’d like help at any stage from drafting the resolution, appointing the liquidator, obtaining clearances, or final deregistration, our team at Arnifi offers full-service support. We also provide business setup, licensing, visa services, and ongoing corporate compliance. Reach out and we’ll make your transition clean, clear and confident.