Company Liquidation & Deregistration Services in UAE Dubai - Ashfaq and Associates

Whether you're winding down operations, restructuring your business, or simply no longer need a UAE entity, proper liquidation and deregistration are essential to avoid ongoing liabilities, penalties, and legal complications. Ashfaq and Associates provides comprehensive company liquidation services for mainland and free zone entities, ensuring a smooth, compliant, and hassle-free closure process.

Closing a company in the UAE involves multiple regulatory steps: finalizing accounts, settling liabilities, deregistering from tax authorities (VAT and Corporate Tax), canceling trade licenses, clearing employee settlements, and coordinating with government departments. Each jurisdiction—whether DED (Department of Economic Development) for mainland or specific free zone authorities—has its own requirements and procedures. Mistakes or omissions can result in penalties, blacklisting, or future complications when you need to set up another business.

With over 15 years of experience in India and 5+ years serving businesses across the UAE, we guide you through every stage of the liquidation process. Our team handles the financial, regulatory, and administrative complexities, allowing you to close your company with confidence and peace of mind. Whether it's a voluntary closure or a court-ordered liquidation, we provide expert support tailored to your situation.

Our Liquidation & Deregistration Services

1. Voluntary Company Liquidation

For businesses choosing to close voluntarily, we manage the entire process from initial assessment to final deregistration. This includes preparing closure documentation, obtaining approvals, and ensuring all regulatory obligations are met.

Initial liquidation assessment and planning
Shareholder resolutions and board approvals
Coordination with mainland DED or free zone authorities
Application preparation and submission
Follow-up and final approval coordination

2. Tax Deregistration (VAT & Corporate Tax)

Before you can close your company, you must properly deregister from VAT and Corporate Tax with the Federal Tax Authority (FTA). We handle all aspects of tax deregistration, including final returns, refund claims, and clearance certificates.

VAT deregistration application and final returns
Corporate Tax deregistration (if applicable)
Final tax liability assessment and settlement
Refund claims and processing
Tax clearance certificate obtainment

3. Trade License Cancellation

Canceling your trade license involves coordination with various government entities and clearance from multiple departments. We manage the entire process, ensuring all prerequisites are completed and approvals obtained.

License cancellation application preparation
Coordination with DED or free zone authority
Immigration and labor clearances
Bank account closure coordination
Final license cancellation and certificate

4. Final Account Preparation & Audit

Preparing final financial statements and obtaining a closure audit (if required) are mandatory steps in most liquidations. We prepare compliant final accounts, coordinate audits, and ensure all financial obligations are documented and cleared.

Final financial statements preparation
Liquidation audit (where required)
Asset and liability settlement documentation
Proof of debt settlement and clearances
Final accounts submission to authorities

5. Clearing Liabilities & Employee Settlements

All outstanding liabilities—including creditors, suppliers, landlords, and employee dues—must be settled before liquidation can proceed. We help you identify, calculate, and clear all obligations in accordance with UAE labor and commercial laws.

Creditor and supplier settlement coordination
Employee end-of-service benefits calculation
Final salary and leave encashment processing
Visa cancellation and labor clearances
Documentation of all settlements for regulatory clearance

6. Court-Ordered Liquidation Support

In cases of insolvency or mandatory liquidation ordered by courts, we provide specialized support to navigate the more complex legal and regulatory requirements. This includes liaising with appointed liquidators, creditors, and legal counsel.

Support for court-appointed liquidator
Financial records and reporting for insolvency proceedings
Creditor claims management and documentation
Asset realization and distribution support
Compliance with court orders and deadlines

Liquidation Process Timeline

Typical Timeline (Voluntary Liquidation)

Week 1-2: Initial assessment, documentation gathering, shareholder resolutions
Week 3-4: Final accounts preparation and audit (if required)
Week 5-6: Tax deregistration and clearance (VAT, Corporate Tax)
Week 7-8: Employee settlements and visa cancellations
Week 9-10: License cancellation application and approvals
Week 11-12: Final clearances, bank closure, certificate issuance

Note: Actual timelines vary based on company type, jurisdiction, outstanding liabilities, and authority processing times. Free zone liquidations are often faster than mainland (DED) closures.

Why Choose Our Liquidation Services?

End-to-End Management

We handle every step—from initial assessment to final certificate—so you don't have to navigate the complexity alone.

Mainland & Free Zone Expertise

Deep experience with DED, DMCC, JAFZA, DAFZA, and other free zone liquidation procedures across UAE.

Tax & Compliance Focus

We ensure full VAT and Corporate Tax compliance, avoiding penalties or complications with FTA.

Minimize Delays & Costs

Our structured approach reduces processing time, rework, and unnecessary expenses during closure.

Frequently Asked Questions

How long does it take to liquidate a company in UAE?

The process typically takes 2-4 months for straightforward voluntary liquidations, depending on the jurisdiction (free zone vs. mainland), outstanding liabilities, and authority processing times. Complex cases with significant debts or disputes can take longer.

What are the costs involved in company liquidation?

Costs include government fees (license cancellation, immigration clearances), professional service fees (audit, PRO, legal), tax clearances, employee settlements, and any outstanding liabilities. We provide a detailed cost estimate during the initial consultation.

Can I liquidate a company with outstanding debts?

Yes, but all debts must be settled (or formally resolved) before the liquidation can be completed. If the company cannot settle its debts, a court-ordered liquidation or insolvency proceeding may be required. We can guide you through both scenarios.

What happens if I don't properly close my company?

Failing to properly close a company can result in ongoing license renewal fees, accumulating penalties, blacklisting by authorities, immigration issues (visa problems for shareholders/directors), and complications when setting up future businesses in the UAE. Proper liquidation is essential for a clean exit.

Do I need a liquidation audit?

Many jurisdictions (especially mainland and certain free zones) require a final liquidation audit before granting closure approval. Even where not mandatory, a closure audit provides assurance that all liabilities are properly accounted for and can expedite the approval process.

Liquidation & Deregistration Services