How do I close a free zone company in the UAE?

You must notify the free zone authority of your intention to close the company, submit the required termination application, cancel all visas and work permits, settle outstanding liabilities, obtain utility and facility clearances, and—where applicable—publish a closure notice in an Arabic newspaper. Once all formalities are complete, the free zone authority issues an official termination certificate.

Do all free zones require liquidation?

Not always. Some free zones accept a simplified termination for companies with no liabilities, while others—such as DMCC and DIFC—require formal liquidation with a solvency statement or liquidator appointment. The necessary procedure depends on the free zone’s regulations and the company’s financial position.

How long does it take to close a free zone company?

Timelines vary by free zone and the complexity of the company. In zones requiring newspaper announcements, the process may take several weeks. Companies with employees, warehouses, outstanding contracts or financial obligations typically require additional time for full clearance.

Do employee visas need to be cancelled before the company can close?

Yes. All employee visas and work permits must be cancelled through the GDRFA and MOHRE before a company can obtain final clearance. Shareholder and investor visas must also be cancelled unless they are transferred to a different sponsor.

What is a solvency statement and when is it required?

A solvency statement is a formal declaration confirming that the company is able to meet its financial obligations. It is required in summary winding-up procedures in free zones such as DMCC and DIFC, where the company has no outstanding liabilities.

What happens if the company has outstanding debts?

If the company has creditors, a creditors’ winding-up procedure may apply. The company must notify creditors, settle claims, and submit evidence that all liabilities have been addressed. Free zone authorities will not issue a termination certificate until all debts are resolved.

Does the company need to close its bank account?

Yes. Most free zones require submitting proof that the company’s corporate bank account has been closed before issuing final termination approval.

Can a company reopen after termination?

No. Once a free zone company is officially terminated and deregistered, it cannot be reinstated. To operate again, a new licence must be obtained.

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Closing a Business in a Free Zone

Free Zone Business Closure Services in the UAE

Company Liquidation and Licence Cancellation in UAE Free Zones

EGSH is an authorised centre that supports the full closure of companies registered in UAE free zones. We coordinate with the relevant free zone authority and, where applicable, with the Ministry of Human Resources & Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs Dubai(GDRFA Dubai) for labour and visa cancellations.

Through EGSH, clients complete shareholder resolutions, liquidation steps (if required), visa and work-permit cancellations, and all mandatory clearances. We submit the application through the free zone’s official system and track it until termination.

Why EGSH

Coordination with free zone, MOHRE and GDRFA
Submission through official government systems
Same-visit document review and guidance
Transparent, authority-regulated fees

The free zone authority issues the termination certificate only after all visa cancellations, financial settlements, and required approvals are verified in its system.

Company Liquidation and Licence Cancellation in UAE Free Zones

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Visit our authorised centre during working hours—no prior appointment is required. You may also book your visit online at a convenient time.

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We monitor examination stages, assist with amendments or responses, and guide you until the MoE issues your patent certificate (subject to approval).

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Technical Description and Claims

A full description of the invention, defining the problem solved, how it works, and the scope of protection you seek (claims), prepared according to the MoE’s patent-drafting standards.

Abstract and Supporting Drawings

A concise abstract summarising the invention, along with labelled technical drawings or diagrams that illustrate the structure, method or process being patented.

Applicant and Inventor Documents

Passport copies, Emirates ID (if applicable), and details of all inventors and applicants. For corporate applicants, a trade licence and authorised-signatory documentation are required.

Priority or PCT Documents (When Applicable)

Certified priority documents for foreign filings, or PCT national-phase entry documents, including the international search report and WO publication.

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What Is Free Zone Business Closure in the UAE

Free zone business closure is the legal process through which a company registered in a UAE free zone is dissolved, and the governing authority cancels its trade licence. The procedure confirms that all immigration, labour, contractual and financial obligations have been discharged before the entity is removed from the free zone register.

Although each free zone applies its own regulations, the objectives are similar:

Extinguishing outstanding liabilities
Confirming the cancellation of all employee and partner visas
Verifying settlement of utility and lease commitments
Terminating the company’s authority to operate within the zone

In zones such as Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA) and Dubai International Financial Center (DIFC), closure may include a formal liquidation phase requiring solvency declarations, appointment of a liquidator, or a public creditor notice in an Arabic newspaper. Once all mandatory steps are completed, the authority issues a termination or deregistration certificate, which is the final proof that the company has been dissolved.

Proper closure prevents ongoing licence fees, fines and future liabilities and maintains a compliant regulatory record for shareholders and directors.

Types of Free Zone Company Closure in the UAE

Free zones categorise closure procedures based on the company’s solvency, liabilities and regulatory standing. While terminology differs, the core frameworks remain aligned across UAE free zones.

Summary Winding Up

Used when the company has no liabilities or can settle them immediately. It typically requires a solvency statement confirming the ability to meet all obligations. This is the fastest route for companies with no operational footprint or outstanding dues.

Creditors’ Winding Up

Applied when the company has outstanding debts. The process involves a shareholders’ resolution, a creditors’ meeting, formal notifications and settlement of verified claims in accordance with the free zone’s liquidation rules.

Bankruptcy Proceedings

If the company cannot meet its obligations, closure may occur under the UAE Bankruptcy Law through court-directed procedures, creditor notifications and supervised asset distribution.

Some free zones impose additional steps—such as mandatory notice periods for leased facilities, solvency checks or operational audits. EGSH identifies the correct closure category and manages all procedural requirements with the governing authority.

Labour, Visa and Clearance Requirements for Free Zone Company Closure

A free zone authority will not issue a termination certificate until all immigration and labour formalities are closed and no sponsored individuals remain under the company.

Employee Visa and Work Permit Cancellation

All employee visas must be cancelled with the GDRFA, and work permits must be cancelled with the MOHRE. Employers must comply with UAE Labour Law obligations, including statutory notice periods and settlement of employee entitlements.

Partner and Investor Visa cancellation. Shareholder and investor visas linked to the company must be cancelled or transferred. Both free zone immigration and GDRFA clearances are required.
The MOHRE Establishment Card closure. If a MOHRE establishment card exists, it must be cancelled after all employees are released. The closure application cannot proceed while the card remains active.
Free Zone Authority Clearances. Authorities verify that all facilities, warehouses or offices have been vacated, returned and inspected, and that lease-related obligations have been met.
Utility and Telecom Clearance. Companies must obtain No Objection Certificates (NOCs) from utilities and telecom providers confirming full settlement and disconnection.

These requirements ensure that the company has no continuing operational or sponsorship responsibilities before deregistration.

Liquidation Notice Requirements for a Free Zone Company Closure

A liquidation notice is a public announcement in a local Arabic newspaper informing creditors and stakeholders of the company’s intention to close. Its purpose is to allow creditors to submit claims before deregistration.

Free zone rules differ:

DMCC, DIFC and others require publication during formal liquidation or when liabilities exist.
Some zones require the notice only when creditors are present.
Zones with simplified deregistration processes may waive the requirement entirely for companies with no liabilities or employees.

Whether a liquidation notice is required is determined solely by the free zone’s regulations. EGSH applies the procedures prescribed by the authority.

How the Free Zone Closure Procedure Works

Although each authority applies its own procedural sequence, the core workflow is largely similar.

Filing the Closure Notification
The company files a closure or termination request through the free zone’s portal. Required documents may include shareholder resolutions, solvency statements or a liquidator’s appointment.
Settlement of Obligations and Visa Cancellations
All visas and work permits must be cancelled, the MOHRE and GDRFA clearances obtained, utilities disconnected and all dues—including government charges, lease obligations and service-provider balances—settled. Some zones also require bank account closure.
Publication and Liquidation Procedures
Where relevant, a liquidation notice is published in an Arabic newspaper. Certain free zones conduct operational audits, facility inspections or warehouse handover checks. For formal liquidation, the liquidator issues interim and final reports.
Issuance of Final Termination Certificate
Once all obligations are verified, the free zone authority issues the termination or deregistration certificate, confirming the company’s dissolution and removal from its register.

Official Fees for Free Zone Company Closure in the UAE

Free zone company closure fees in the UAE vary depending on the governing authority, the company’s legal structure, and whether liquidation is required. Each free zone sets its own regulated charges, and all payments must be made through official platforms or authorised service centres.

Free Zone Authority Fees
These include the company termination or deregistration fee, administrative charges, and—in some cases—portal or processing fees. Fees differ between zones such as DMCC, JAFZA, DIFC, DAFZA, Dubai South, and Meydan.
Liquidation and Professional Fees
If the free zone requires formal liquidation, the company must appoint a registered liquidator. The liquidator’s fees depend on the size of the company, the number of shareholders, and outstanding financial obligations. Some free zones also require interim and final liquidation reports.
Newspaper Announcement Fees
Zones such as DMCC require publishing a closure notice in a local Arabic newspaper. The cost varies depending on the publication selected.

Labour and Immigration Fees
Employee visa cancellations, work permit cancellations, establishment card closure and immigration clearances may involve additional regulated fees, depending on the number of sponsored individuals.
Utility and Facility-Related Fees
Before final termination, companies must settle outstanding utility bills, telecom charges and any free zone facility-related costs. Some zones apply warehouse inspection or facility handover fees.
EGSH provides a full, case-specific fee breakdown covering all required government and third-party charges for the chosen free zone.

Department of Dubai Economic Services at EGSH

Explained by

Shaimaa Sayed Qasem

Department of Dubai Economic Services at EGSH

Shaimaa Sayed Qasem is a dedicated service provider at the Department of Dubai Economic Services at EGSH, with seven years of experience delivering business services, supporting clients and ensuring compliance with regulatory requirements.

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Frequently Asked Questions About Free Zone Company Closure in the UAE

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