Guides · closing-a-company
Closing a company
Closing a UAE free zone company is a formal process managed by the relevant free zone authority. It generally requires a shareholder resolution, cancellation of all visas, settlement of outstanding liabilities, obtaining clearances from various departments (customs, utilities, finance), submitting a deregistration or liquidation application, and possibly publishing a newspaper advertisement. Once approved, a de-registration certificate is issued, officially dissolving the company.
Dates that carry a penalty
DDA deregistration processing time4 working dayssource
Jafza company termination processing time21 working dayssource
RAKEZ payment of deregistration invoiceWithin 10 days from issuance of initial invoicesource
RAKEZ facility return to original conditionWithin 15 days from initial invoice datesource
RAKEZ visa cancellation application for investor/partnerWithin 10 days from payment/deregistration invoicesource
Shams special resolution validityNot older than 30 calendar days when submittedsource
Who it applies to
Free Zone Establishment (FZE)
Free Zone Limited Liability Company (FZ-LLC)
Free Zone Company (FZCO)
Branch of a free zone company
The rules that decide it
Shareholder resolution requiredsource
A notarized and attested shareholder resolution (or owner's declaration for FZE) calling for deregistration must be submitted.
Clearance from all relevant departmentssource
Clearances from finance, customs, DEWA (if applicable), telecom providers, and leasing must be obtained before deregistration.
Settlement of all outstanding feessource
All dues to the free zone authority and other government entities must be paid in full.
Cancellation of visassource
All employee, investor, and partner visas under the company's sponsorship must be cancelled or transferred before the licence holder's visa is cancelled.
Advertisement in newspaperssource
Some free zones require publication of the deregistration announcement in local newspapers (English and Arabic).
Return of original documents and keyssource
Original certificates (formation, share, audit report) and keys to leased facilities must be returned.
Thresholds and rates
DDA deregistration fee (non-In5 companies)source
AED 1,500 + AED 10 Knowledge Dirham + AED 10 Innovation Dirham = AED 1,520
DDA deregistration fee (In5 companies)source
AED 1,000 + AED 10 Knowledge Dirham + AED 10 Innovation Dirham = AED 1,020 (lowest published official fee)
Jafza licence termination fee (independent licence cancellation)source
AED 1,500
Jafza company de-registration fee (FZE/FZCO)source
AED 5,000
Jafza advertisement feesource
AED 1,500 + 5% VAT = AED 1,575
Penalties
Step by step
Step 1source
Pass a shareholder resolution (or owner's declaration for FZE) to dissolve the company, notarized and attested as required.
Step 2source
Cancel all employee and investor visas under the company's sponsorship.
Step 3source
Settle all outstanding fees and obtain clearances from finance, customs, DEWA (if applicable), and telecom providers.
Step 4source
Submit deregistration/liquidation application along with required documents (resolution, clearances, auditor's report, etc.).
Step 5source
Publish newspaper advertisement if required by the free zone.
Step 6source
Return original certificates, keys, and complete lease termination formalities.
Step 7source
Receive the certificate of de-registration confirming company closure.
Common mistakes
Failing to cancel visas before the licence expiry, incurring fines
Not settling all utility or customs dues, blocking clearance
Submitting an unnotarized or incorrectly attested shareholder resolution
Missing the deadline for returning the facility to its original condition
Not advertising the deregistration in newspapers when required
Free zone specifics
DDA (Dubai Development Authority): Deregistration fee AED 1,500 (AED 1,000 for In5), processing time 4 working days, requires newspaper advertisement.
Jafza (Jebel Ali Free Zone): Company termination fee AED 5,000 + advertisement AED 1,500 + VAT, processing time 21 working days; separate licence termination fee AED 1,500 if multiple licences.
RAKEZ (Ras Al Khaimah Economic Zone): Penalties for late deregistration (AED 50/day) and visa delay (AED 1,100); specific deregistration fee not published in provided sources.
Shams (Sharjah Media City): Liquidation regulations require a special resolution within 30 days and a statement of solvency; no fee amounts specified in the provided regulations.
Questions the guide answers
How much does it cost to deregister a company in Jafza?
The official de-registration fee for an FZE or FZCO is AED 5,000, plus an advertisement fee of AED 1,500 + 5% VAT (total approximately AED 6,575). If you are only terminating one licence while keeping others, the fee is AED 1,500.
How long does the deregistration process take?
It varies by free zone: DDA estimates 4 working days, Jafza estimates 21 working days.
Do I need to cancel visas before closing the company?
Yes, all visas under the company's sponsorship must be cancelled or transferred. The licence holder's visa is usually the last to be cancelled.
What happens if my licence has already expired?
You may still apply for deregistration, but additional fines may apply. For example, Jafza charges AED 1,000 per month for an expired licence, and RAKEZ charges AED 50 per day for late deregistration.
What the research does not settle
- No official deregistration fee found for RAKEZ or Shams in the provided sources.
- No specific penalty amounts for DDA or Shams non-compliance.
- Common mistakes are inferred from penalty clauses, not explicitly listed as 'common mistakes' by authorities.
- Step-by-step for DMCC not detailed in the provided sources.
- Agent package prices not available; all figures are official authority fees.
Sources
Deregistration of Company in UAE | Dubai Development Authorityhttps://dda.gov.ae/en/registration-licensing/existing-businesses/license-cancellation/deregistration-fz-llcread 2026-10-20
Closing a business in a free zone | The Official Platform of the UAE Governmenthttps://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/closing-a-business-in-a-free-zone-read 2026-10-20
Company Termination | Jebel Ali Free Zone (Jafza)https://www.jafza.ae/resource-centre/guides/company-termination/read 2026-10-20
Terminating your licence with Jafza | Jebel Ali Free Zonehttps://www.jafza.ae/resource-centre/guides/terminating-your-license-at-jafza/read 2026-10-20
FREE ZONE - DOCUMENTS REQUIRED FOR COMPANYhttps://www.rakez.com/upload/managedocument/checklist-de-registration-free-zone_20200408150117.pdfread 2026-10-20