Dubai’s business landscape is one of the most dynamic in the world. Companies thrive here due to business-friendly regulations, tax benefits, and global connectivity. However, not all businesses last forever. If you find yourself needing to close your company, liquidation is the proper way to do it.
When you want to Liquidate a Dubai Mainland company, it is a structured process involving government authorities, financial settlements, and legal documentation. If not done correctly, it can result in fines, legal complications, and unnecessary delays.
In this guide, we’ll walk you through how to liquidate a Dubai Mainland company in 2025, covering the necessary steps, costs, and legal obligations to ensure a smooth exit.
What is a Dubai Mainland Company?
A Dubai Mainland company is a business registered under the Dubai Department of Economy and Tourism (DET) (formerly known as the Department of Economic Development or DED). Unlike free zone companies, mainland companies can operate anywhere in the UAE and are not restricted to specific geographic zones.
These companies are often chosen for their flexibility, ability to trade across the UAE, and access to government contracts. However, when a business no longer remains viable, liquidation becomes necessary.
Why Would You Want to Liquidate a Dubai Mainland Company?
Company liquidation isn’t always due to failure. Several factors can lead business owners to officially close their operations.
1. Business Closure
Sometimes, entrepreneurs decide to move on from their business ventures. Whether it’s due to retirement, relocation, or a change in interests, proper liquidation ensures a clean exit with no legal liabilities.
2. Change in Business Strategy
Many companies pivot to new industries or restructure their operations. If a business model no longer aligns with its long-term goals, liquidation might be the best solution before moving forward.
3. Financial Difficulties
Businesses facing financial struggles, declining profits, or excessive debt may find it more practical to liquidate than to continue operations at a loss. Properly liquidating a Dubai Mainland company can protect business owners from unnecessary penalties and lawsuits.
What are the Steps to Liquidate a Dubai Mainland Company?
Liquidation follows a legal and financial process that ensures all obligations are met before a company officially closes.
Here’s a step-by-step breakdown of how to liquidate a Dubai Mainland company in 2025:
1. Notify the Relevant Authorities
The first step is to inform the Dubai Department of Economy and Tourism (DET) about your intention to liquidate the company. You’ll need to submit a board resolution (for LLCs) or a shareholder’s resolution (for sole proprietorships) confirming the decision.
2. Settle Any Outstanding Liabilities
Before liquidation can proceed, all financial obligations must be settled:
- Clear outstanding debts with banks or creditors.
- Pay off any supplier invoices.
- Settle employee dues, including end-of-service benefits.
- Close corporate bank accounts to prevent future transactions.
3. Obtain a No Objection Certificate (NOC)
You’ll need to request a No Objection Certificate (NOC) from relevant authorities, such as:
- Dubai Customs (if applicable)
- Utilities providers (DEWA, Etisalat, du)
- The leasing company (if you rented an office space)
Without this clearance, your liquidation process can be delayed or rejected.
4. Cancel All Licenses and Permits
A company operating in Dubai Mainland holds various business licenses and permits that need to be officially canceled. These include:
- Trade license from DET
- VAT setup (if applicable)
- Work permits and visas for employees
You must also notify the General Directorate of Residency and Foreigners Affairs (GDRFA) to cancel any residence visas linked to the company.
5. Submit a Liquidation Application
Once all outstanding matters are settled, you need to file a liquidation request with DET. You will also need to appoint a licensed liquidator to oversee the company’s closure.
The liquidator will:
- Audit the company’s finances
- Ensure debts are settled
- Oversee the asset distribution process
6. Publish a Notice of Liquidation
As part of the legal process, your liquidation notice must be published in two local newspapers for 45 days. This allows creditors to raise any claims before the final dissolution of the company.
If no claims are raised within the 45-day period, the company can proceed with final liquidation steps.
What are the Costs and Timeframe for Liquidating a Dubai Mainland Company?
1. Liquidation Costs
The cost of liquidating a Dubai Mainland company depends on various factors, including:
- Business license cancellation fees
- Outstanding tax liabilities and fines
- Legal and liquidator fees
On average, liquidation costs can range between AED 8,000 – AED 15,000, depending on the business size and liabilities.
2. Timeframe for Liquidation
The entire liquidation process typically takes 2 to 6 months, depending on:
- The company’s financial and legal obligations.
- The efficiency of document submission.
- The response from DET and other government entities.
Businesses with outstanding debts or pending legal issues may experience longer liquidation timelines.
What Happens to the Assets of a Liquidated Dubai Mainland Company?
1. Distribution to Creditors
If a company has outstanding liabilities, its assets will first be used to repay creditors. This may include:
- Selling company assets (furniture, equipment, intellectual property)
- Settling final supplier invoices
2. Distribution to Shareholders
After settling all outstanding debts, any remaining assets or funds are distributed among the shareholders based on their ownership percentage.
For sole proprietorships, the owner receives the remaining assets after all obligations are met.
The Importance of Properly Liquidating a Dubai Mainland Company
Liquidation isn’t just about closing shops—it’s about ensuring that you exit the market legally and responsibly. If you fail to liquidate properly, you may face:
- Legal consequences from unsettled debts or unresolved government requirements.
- Future penalties when trying to set up a new business in the UAE.
- Unwanted liabilities tied to the company name.
By following the correct liquidation steps, you can close your company smoothly, efficiently, and without financial or legal trouble.
How AB Capital Services Can Make Things Easy?
Liquidating a Dubai Mainland company involves multiple steps, legal procedures, and financial clearances—all of which can be time-consuming and complex.
That’s where AB Capital Services comes in.
Why Choose AB Capital Services?
- FTA Approved – Ensuring full compliance with UAE laws.
- Expert Handling – They take care of all paperwork, government approvals, and legal processes.
- Fast & Hassle-Free Process – Speed up your company liquidation without unnecessary delays.
- Cost-Effective Solutions – Competitive pricing to ensure you don’t overpay on liquidation costs.
If you need a trusted partner to handle your Dubai Mainland company liquidation, AB Capital Services is your go-to expert.
Or you can Visit www.abcapital.ae to get started today.
