What Does It Cost To Close Your Dubai Company?
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If you’re planning to set up a business in Dubai, you might already be thinking a few steps ahead — and wondering, “What happens if I need to shut down the company later?”
Maybe your plan is to run your business here for a few years, cash out your crypto tax-free, build your savings, and then move back to your home country. Or maybe you plan to stay in Dubai long-term — but still want to know your options if circumstances change.
Either way, it’s extremely important to understand how the company closure process works in Dubai — including the steps, costs, timelines, and potential mistakes to avoid.
In this guide, we’ll break it all down for you, step-by-step.
(By the way: There aren’t many resources that explain this clearly — so this might just be the most detailed breakdown you’ll find online!)
Why You Should Care About the Company Closure Process (Even If You’re Just Starting)
When you’re setting up a business, nobody wants to think about closing it.
But here’s the reality: If you ever decide to leave Dubai or stop operating, you must close your business properly.
If you don’t?
You can end up facing:
Heavy government penalties
Visa issues when you come back to Dubai
Tax registration problems
Bank account freezes
Properly shutting down your company keeps your record clean and avoids any future headaches.
So let’s dive into the full process.
Step-by-Step: How to Properly Shut Down a Company in Dubai
Whether you opened your business in a Free Zone or on the Mainland, the general process is the same.
Here’s what you need to do:
1. Close All Company Bank Accounts
The first (and very important) step:
You must close all corporate bank accounts linked to your company.
If you opened an account with banks like WIO Bank, Emirates NBD, or any others, you need to:
Withdraw all the money
Request the bank to officially close the account
Get an Account Closure Letter issued by the bank
You can usually do this by contacting your bank’s customer support. It’s a straightforward process.
Important Tip:
Make sure you get this Account Closure Letter because you’ll need it for the company liquidation process later.
2. Obtain a Liquidation Report
Next, you’ll need a Liquidation Report from an approved auditor in the UAE.
This is a formal document that states your company’s accounts are settled, and you have no outstanding debts or obligations.
There are many licensed auditing firms that can do this for you. If you need help, GenZone can also assist you with recommended partners who specialize in fast, affordable liquidation audits.
3. Submit Documents to the Free Zone or Mainland Authority
Once you have:
Your Account Closure Letter ✅
Your Liquidation Report ✅
You can now submit these to the Free Zone authority (like DMCC, IFZA, Meydan Free Zone, etc.) or to the DED (Dubai Department of Economic Development) if your business is on the Mainland.
They’ll begin the official dissolution process.
4. Cancel Your Visa (and Employee Visas if Any)
Before the license is cancelled, all visas under the company must be cancelled.
This includes:
Your own UAE residency visa
Any employee or dependent visas linked to the company
⚡ Pro Tip:
Before cancelling your visa, make sure you’ve withdrawn all funds from any bank accounts.
Once your visa is cancelled, accessing your accounts could become extremely complicated — especially if you’re outside the country.
5. Cancel the Trade License
After all visas are cancelled, the final step is cancelling the actual business license.
Once the authority approves everything, your company will officially be considered dissolved.
Timeline:
The entire process — from start to finish — usually takes around 3–4 weeks.
Common Questions About Company Closure in Dubai
1. If I cancel my visa, can I still visit Dubai later?
Yes, absolutely!
Once your visa is cancelled, you simply revert to being a regular tourist.
If you’re from countries like Canada, the UK, or most EU countries, you’ll automatically get 90 days visa-free upon arrival.
No hard feelings from Dubai’s government — you’re just no longer a resident.
2. Can I close my company while I’m outside the UAE?
Yes, you can close your company while being outside the UAE.
However, there may be a small extra charge for doing the visa cancellation remotely (around $200 USD).
Still, it’s a fairly simple and manageable process with the right support.
Cost Breakdown: How Much Does It Cost to Shut Down a Company in Dubai?
Now, let’s get into the real costs associated with company closure.
Here’s a breakdown (based on a Free Zone company with one visa holder):
| Item | Cost (USD) |
|---|---|
| License cancellation administrative fee | $277 |
| License cancellation processing fee | $265 |
| Establishment card cancellation | $82 |
| Establishment card cancellation application | $60 |
| VAT and Corporate Tax deregistration | $550 |
| Visa cancellation fee (per person) | $430 |
| Liquidation Audit Report | ~$1,100 |
| Company Stamp (for de-registration) | $50 |
| Total (Government Fees Only) | ~$2,800 |
Additional Costs:
Service Fees:
Depending on the agency or consultant you hire to manage the process, service fees could range from $1,000 to $5,000 USD.
(At GenZone, we offer transparent and reasonable pricing for company closure assistance — no hidden fees.)
Important Notes on Timing and Penalties
Warning: Timing is Critical!
If your company license expires before the closure process is completed, you may face additional penalties from the Free Zone or DED.
This could mean:
Paying for renewal fines
Paying for late cancellation fines
So it’s crucial to start the closure process at least 1–2 months before your license expiry date to avoid unnecessary charges.
Mistakes to Avoid When Closing Your Company
Withdraw all funds from UAE banks before cancelling your visa Pay off all VAT, Corporate Tax, or licensing fines before starting File all necessary documents properly to avoid rejections Start early if your license expiry is near
Is It Expensive to Shut Down a Business in Dubai?
When you first look at the $2,800 government fee plus service fees, you might think, “Wow, that’s expensive.”
But honestly? Compared to shutting down a business in countries like Canada, the US, or the UK, Dubai is actually cheaper and more straightforward.
In many western countries, company closure involves complicated tax filings, audits, months of paperwork, and accountant/legal fees that can go well above $5,000 to $10,000 easily.
Dubai’s company closure system — while bureaucratic — is still relatively fast, clean, and affordable.
Final Thoughts: Plan Ahead and Do It Right
Whether you’re planning to stay in Dubai for life or just spend a few years here to maximize your savings and grow your business, knowing the shutdown process is just smart business planning.
If you set things up correctly today, dissolving your company later will be smooth and easy.
If you ignore the steps, you could face big headaches later on.
Want help closing your company properly?
At GenZone, we help entrepreneurs navigate this process professionally, with full transparency and support.
