Closing a company, ending a partnership or winding up debts? Tell us where things stand and we will take the legal work off your shoulders.
Legal support for closing a company in Dubai and the UAE: voluntary liquidation, dissolution, trade licence cancellation, deregistration, creditors, employees and insolvent companies.
Tell us what is happening in your own words. We will explain where you stand and what the sensible next step is.
If you are looking for a company liquidation lawyer in Dubai, you are probably in one of a few positions: the business has run its course, the partners cannot work together, the company is short of money, or a licence is about to lapse and you want to leave nothing behind that comes back on you. You do not have to work this out alone. MBM, lawyers and legal consultants, acts for owners, shareholders and directors on closing a company, whether solvent or insolvent, including companies in free zones, the DIFC and the ADGM, from offices in Dubai Media City and Al Khalidiya, Sharjah. MBM can act as liquidator or work with the liquidator, your accountants and your PRO, and the same team handles litigation and arbitration if a creditor, partner or employee disputes the closure.
Most closures start with one question: can the company pay what it owes? If it can, the route is generally a voluntary closure that the owners control. If it cannot, other routes may apply and the position of directors needs care. Either way, closing a company is a process with several parts, not a single filing, and the order of the steps matters.
Your first consultation is free and confidential. You do not need to know which route applies. Tell us what is happening and we will explain your options and the sensible first step.
The owners decide to close a company that can pay its debts. See voluntary liquidation steps. First we check: whether the company is solvent, what the articles say about closure and which authority licensed it. Talk to us about a voluntary closure
The company is licensed by a free zone, a DIFC or an ADGM registry, not the Dubai mainland. See how the routes differ. First we check: the licence, the authority's own closure rules and any lease or visa tied to the zone. Talk to us about a free zone closure
Creditors, lenders or a landlord are pressing for payment. See insolvent and compulsory liquidation. First we check: who is owed what, any claims already filed and what directors may have signed personally. Talk to us about an insolvent company
One owner wants to close, another wants to carry on or to be paid out. See shareholder dispute lawyer in Dubai. First we check: the articles, any shareholders' agreement and what each owner is actually asking for. Talk to us about a partner disagreement
Staff contracts, final pay and visas must be dealt with on closure. See employees on closure. First we check: each contract, the length of service and any complaint already filed. Talk to us about employees on closure
Office leases, supplier and customer contracts do not end just because the company stops trading. See contracts and leases on closure. First we check: notice and termination clauses, the lease term and who signed. Talk to us about leases and contracts
The company stopped trading some time ago and nobody closed it properly. See dormant and expired companies. First we check: the licence status, any fines, bank accounts and tax registrations still open. Talk to us about a dormant company
A buyer may pay more than a closure returns, or take on the staff and the lease. See M&A lawyer in Dubai. First we check: what a buyer would acquire and whether a sale is realistic. Talk to us about selling instead
These terms are often used as if they meant the same thing, but they describe different stages and different routes. There is no single "company liquidation UAE" procedure: which words an authority uses, and what each step involves, depend on the type of company and who licensed it.
Liquidation vs dissolution is a common point of confusion. As we understand it, liquidation is the work of settling the company's affairs and dissolution is the legal end of the company. A company is usually wound up first and dissolved at the end, so cancelling the trade licence alone does not complete the job. We explain which stage you are at and what remains.
In this setting, a company dissolution lawyer does much more than file the licence cancellation. The legal work is in the decision to close, the choice of route, the liquidator's role, creditor, employee and contract issues and the final clearances. Dissolution is where all of that ends up, so we start at the beginning and work towards it.
Owners use both phrases, and they are usually describing the same goal in different words. Closing is the everyday word for the whole process, and dissolution is the legal end of the company. The practical difference is whether the company still has debts, staff and contracts, because those decide how long the process takes and which route applies.
People search "deregister company in UAE" as if it were one step, but it usually means more than one register. There may be the licence with the licensing authority, the establishment card and employee visas, the company's tax registrations with the Federal Tax Authority, and the company's bank accounts. Each is closed by its own body and some depend on others, so we list every registration the company holds before the first step.
The table gives a general map. Rules and forms change, and each authority has its own requirements, so use it to know what to ask, not as advice on your company.
| Where the company is licensed | Who sets the closure procedure | What to check first |
|---|---|---|
| Dubai mainland company | The Commercial Companies Law and the licensing authority, which is generally the Department of Economy and Tourism in Dubai | The type of company, what the articles say about closure and whether the company is solvent |
| Free zone company | The free zone authority, which has its own regulations, forms and registry | Which authority issued the licence, its closure steps and any lease or visa linked to the zone |
| DIFC or ADGM company | The financial centre's own company and insolvency framework and its registrar | Which rules and which courts or registrar apply, because they are separate from the onshore rules |
The practical consequence is that no single checklist fits every company. A step that is essential for a mainland company may not exist for a free zone company, and the reverse. DIFC company liquidation and ADGM company liquidation follow the financial centre's own rules and registrar, not the onshore process, so we check those rules first.
A strike-off is usually the shorter route for a company that has been dormant and has no liabilities. As we understand it, some free zone and financial-centre registries offer a shorter strike-off or deregistration route of that kind, while a mainland company generally goes through liquidation. So if you have searched "strike off company UAE", the honest answer is that it depends on the authority, the company's debts and its history. Requirements change, so we confirm the current position at your first consultation.
Check the authority before you start. Telling the wrong authority, or starting a step out of order, can mean a rejected filing or a licence that is cancelled while debts and visas are still open. Tell us which authority licensed the company at the start.
The owners decide whether to close a solvent company, and the company's own documents say how that decision must be taken. Once the decision is made, a liquidator takes over the work.
A voluntary liquidation generally starts with a formal decision by the owners, recorded in a resolution. As we understand it, the Commercial Companies Law and the company's memorandum and articles set out how the decision must be taken, including the majority needed, and the majority differs by type of company and by what the articles add. We read the articles and any shareholders' agreement first, because they often carry conditions that owners forget, such as consent rights for particular shareholders.
If a resolution is passed in the wrong way, it can be challenged later by an owner who did not agree. Getting the decision right at the start is usually cheaper than defending it afterwards.
Appointing the liquidator is a real step with consequences, because the liquidator takes charge of the company's affairs. The owners generally propose the liquidator, and the licensing authority may have to accept the appointment. As we understand it, the liquidator is often a licensed audit firm or another qualified professional, depending on the authority's requirements, and their fees are usually a separate cost.
Owners often ask whether they can appoint a liquidator themselves or one of the existing managers. That depends on the authority and the type of company. To appoint a liquidator in Dubai, you need the resolution, the appointee's consent and the documents the authority asks for. MBM can act as liquidator, or advise and work with the liquidator you or the authority appoint, and we advise on the appointment, the liquidator's powers and what the owners should receive in writing. Your accountant or auditor handles the accounts, and we handle the legal side alongside them.
Whether you call it liquidation or search for "winding up company Dubai", the liquidator's job is broadly the same. Winding up a company in the UAE follows a similar pattern whichever authority licensed it, although the forms differ. In outline, the liquidator is in charge of:
Once a liquidator is appointed, the directors' and managers' powers generally pass to the liquidator, and they should not carry on trading in the usual way. Directors should keep records, answer the liquidator's questions and avoid moving assets or paying some creditors ahead of others. If the company is short of money, take advice before you do anything with its cash.
If one owner wants to close and another wants to carry on, or if an owner wants to be paid out first, closure may become a dispute about price, control and blame. See shareholder dispute lawyer in Dubai for how those disputes are handled, including negotiated exits and the forums available.
People often search for the "company liquidation process Dubai" as if there were one procedure. In practice each authority has its own, but the main stages are similar. The outline below shows the usual order for a solvent company. Your authority may add, merge or reorder steps, so we confirm the current requirements before you start.
We establish who licensed the company, whether it is solvent, who the owners are and what the articles say, then choose the route and the order of the steps.
The owners pass a formal resolution to close the company in the way the articles and the law require, and record it properly.
A liquidator is appointed, and the authority is told or asked to approve, depending on the procedure.
Creditors are told that the company is closing and are given an opportunity to claim. Authorities generally ask for a public notice, and the form depends on the authority.
The liquidator collects amounts due to the company, pays creditors in the right order and deals with disputed claims.
Staff contracts are ended, final dues are settled and visas are cancelled. Leases and commercial contracts are terminated or transferred.
The liquidator prepares final accounts, usually reviewed by an auditor, showing what was collected, paid and what is left for the owners.
With the clearances the authority requires, the licence is cancelled. The application generally needs the liquidation documents and proof that the earlier steps are complete.
The company is deregistered with the Federal Tax Authority and its bank accounts are closed once the balance is distributed.
Any surplus goes to the owners and the company is removed from the register, so that it ceases to exist.
If you want to know how to close a company in Dubai and the company can pay its debts, the steps above are the usual route. How to dissolve a company in Dubai is the same question in different words: dissolution is the end of the process, and most of the work sits in the stages before it. A solvent company is generally the simplest case. It becomes harder where creditors are unknown, records are incomplete or the owners disagree.
If you have searched "cancel trade licence Dubai", start with this: the licence is cancelled through the licensing authority's process, and the Department of Economy and Tourism is generally the authority for a Dubai mainland company. As we understand it, cancellation generally requires the liquidation steps to have been completed and clearances from other bodies to have been obtained. Cancelling the licence ends the right to trade, but it does not cancel the company's debts, contracts, tax registrations or employee visas. Those are separate steps, and one left open can come back later.
Deregistering the company includes its tax registrations. As we understand it, cancelling the trade licence does not deregister the company for tax automatically:
Final returns and any tax due generally have to be dealt with first, and the licence cancellation certificate and the final accounts are often asked for. We confirm the current requirements at your first consultation, and your tax adviser or accountant usually prepares the filings.
Banks generally want the licence cancellation, the liquidation documents and a signed instruction before they close a corporate account, and they may hold funds until they are satisfied. Employee visas and the establishment card usually need to be cancelled as part of the closure, so plan the sequence with your PRO or company services provider. If a bank has frozen the account, see bank account frozen lawyer.
Planning to close a company and unsure whether to start with the resolution, the licence or the creditors? Tell us in two or three lines. Your first consultation is free and confidential.
If the company cannot pay its debts, the owners cannot simply cancel the licence and walk away. Which route applies depends on the company's type and its creditors, and each route has different consequences for creditors, owners and directors. Directors who search for a "company winding up lawyer Dubai" are right to do it early, because the options may narrow once creditors act.
| Route | What it is | Points to watch |
|---|---|---|
| Agree terms with creditors | Rescheduling, a pause on payments or a settlement negotiated with lenders, suppliers or the landlord | Get any agreement in writing and check it covers every creditor that matters |
| Court-supervised insolvency procedures | Procedures under UAE law for companies in financial difficulty. As we understand it, Federal Decree-Law No. 51 of 2023 provides preventive settlement, restructuring and bankruptcy routes | Availability depends on the company and where it is established. As we understand it, the law excludes DIFC and ADGM companies, which have their own regimes |
| Compulsory liquidation | A court-led closure where, as we understand it, a creditor or sometimes the company applies to the court and a liquidator is appointed under the court's supervision | The owners lose control of the timetable, and directors' past decisions may be examined |
| Voluntary closure with creditor agreement | The owners close the company where all or most creditors have been paid or have agreed terms | Silent or unpaid creditors can still claim, so identify all of them first |
Compulsory liquidation is generally a creditor remedy and is not something an owner chooses lightly. If a creditor has already sent a demand or filed a claim, tell us at once, because it may change which route is realistic. For the lender's side and restructuring with banks, see banking and finance lawyer in Dubai, and for chasing debts owed to the company, see debt recovery lawyer in Dubai.
Closing a company with debts in Dubai is possible only through a route that deals with the debts, not around them. Owners sometimes hope that cancelling the licence will end the problem. As we understand it, that is not safe, because creditors may still claim, and anything personally guaranteed stays with the person who gave the guarantee. We map who is owed what, who has security or a personal undertaking, and which route is realistic before any step is taken.
Directors and managers owe duties to the company and to its creditors, and the risk rises when the company is short of money. As we understand it, directors and managers can face personal exposure if the company later goes bankrupt, with a reported two-year look-back on earlier transactions. Director liability when a company is wound up depends on the company, the conduct and the current law, so we confirm the position with you before you rely on it.
Practical points for directors of a struggling company:
A closure is not always the only way out. As we understand it, a preventive settlement can be sought by the debtor alone and carries a reported moratorium of three to six months, but availability depends on the company and the current law. See banking and finance lawyer in Dubai for restructuring routes in more detail.
A closing company still has obligations to staff, landlords and counterparties, and settling them in the right order prevents claims after the company has gone.
Closing a company generally ends the employment contracts, and the employer remains responsible for final pay. As we understand it, under the labour law (Federal Decree-Law No. 33 of 2021) employees are generally entitled to unpaid wages and end-of-service gratuity depending on their contract and length of service. We confirm the current position at your first consultation. Employees should also have their visas cancelled properly, and notice, leave and any compensation depend on the contract and the facts.
For the employer's side, see employment lawyer for employers in Dubai, and for the employee's side, see labour lawyer in Dubai.
Contracts do not end because the company stops trading. A supplier, customer or financing agreement continues until it is terminated, completed or transferred in line with its own terms, and the notice clause and any penalty provision decide the cost. We review the key contracts before the licence is cancelled, because it is usually harder to negotiate with a counterparty afterwards. See commercial contracts lawyer in Dubai.
Office, shop and warehouse leases need particular care, because a landlord may claim rent for the remaining term, and the lease may be cancelled or need to be settled before the company can close. We read the lease, the notice terms and any security cheques, and negotiate the exit where we can. See commercial tenancy lawyer in Dubai.
A company that stopped trading years ago may still have a bank account, a lease, employees on its books or a tax registration open. If a licence has expired and nobody renewed it, fines or restrictions may have built up. Closing a dormant company is usually simpler than closing an active one, but old problems come to the surface once you start. We check what is open before you commit to a route.
A buyer may pay more than a closure returns, particularly if the business has customers, staff and a lease that a buyer wants. Selling is not always realistic, and it needs time and preparation. See M&A lawyer in Dubai for how a sale is structured, and corporate and commercial lawyer in Dubai for the wider service.
Which body deals with the closure depends on the type of company and where it is licensed, and it should be clear before you start. In plain terms:
It depends on the company, the authority and how many things are outstanding, so we do not give a standard timeline and promise nothing. A simple closure of a solvent company with clean records is generally faster than one with unknown creditors, disputed claims, many employees or an unpaid lease. Typically the steps that take longest are the ones outside your control: waiting for creditors to respond to a notice, clearances from other bodies and the tax and bank steps.
| Faster when | Slower when |
|---|---|
| The company is solvent and the owners agree | Owners disagree or someone challenges the resolution |
| Records, accounts and contracts are complete | Accounts are missing or the books have not been kept |
| Creditors are known and paid | There are unknown or disputed creditors |
| Staff and visas are already settled | There are labour complaints or unpaid salaries |
| The authority's forms are right the first time | A step is out of order and the filing is rejected |
We tell you at the start what the main steps are, which ones depend on others, and what we need from you to keep the process moving.
Closing a company brings together corporate, contract, employment and sometimes debt issues, and it helps to have one team that sees all of them. A few questions at the first meeting tell you more than any slogan. Ask them of any law firm, including MBM.
Rated 4.9 on Google reviews. MBM is led by Mohamed Badr, Founder & Managing Partner, who brings 17 years of legal experience, with a career across law firms and multinational corporations in the UAE and work for businesses in disputes, corporate restructuring and commercial litigation. You get a written scope and fee position before work starts, plain-language explanations and one team from first call to the end of the matter, with litigation and arbitration handled by the same team.
MBM works with group companies in the UK, Europe, the Middle East and the Gulf, which helps when a matter has an international side. For owners who live abroad, hold the company through an overseas entity or have creditors in other countries, that means a team that understands cross-border structures and can coordinate with advisers elsewhere. Everything you tell us is confidential, and no outcome is ever promised.
Every closure starts with understanding the company, not with a template. You will always know where your matter stands.
You tell us which company is closing, who the owners are and what is outstanding. We explain the likely route and what to do first, in confidence.
We read the licence, articles, any shareholders' agreement, the latest accounts and the main contracts, so advice reflects what is actually signed.
Before you instruct us, we set out what the work covers, what it costs and what is billed separately, such as authority, notice and liquidator charges.
We prepare or review the resolution and the appointment documents. MBM can act as liquidator, or we work with the liquidator, your accountant and your PRO.
We help to deal with creditor notices and claims, end-of-service dues, visas, leases and contracts, and negotiate where needed.
We follow the closure through to licence cancellation and deregistration, and give you a short note of what has been completed and what remains.
You do not need any of these to make the first call. Send what you have by WhatsApp or email afterwards.
The cost depends on the company and the route, so we do not publish a price list. Your first consultation with MBM is free and confidential, and it is where we explain how the work would be scoped. If you decide to instruct us, we give you a written scope and a fee position before work starts.
MBM has two offices: Office 3204, Level 32, Business Central Towers, Tower B, Dubai Media City, Dubai, and Office 2001, Level 20, Al Hind Tower, Al Khalidiya District, Sharjah. You can meet us at either office, call +971 4 570 0204, or send documents and questions by WhatsApp on +971 54 596 1111. Office Whether you searched for a "liquidation lawyer UAE" or for an office near you, we act on closures across the UAE from Dubai and Sharjah, for mainland companies and for companies in free zones, the DIFC and the ADGM. If your company is licensed in another emirate, in a free zone or in the DIFC or ADGM, tell us at the first consultation, because that decides which rules apply.
Your free first consultation is with a member of MBM’s legal team in Dubai or Sharjah. Closure matters are handled in confidence from the first call.
Founder & Managing Partner
Mohamed Badr leads MBM and has 17 years of legal experience. His career has included roles at law firms and multinational corporations in the UAE, advising businesses on high-stakes disputes, corporate restructuring and commercial litigation.
Names and titles as published on mbm-co.com. Your first consultation is with a member of MBM’s legal team in Dubai or Sharjah.
General information about closing a company in the UAE. It is not advice on your matter. Positions and procedures can change and depend on your facts, so please contact MBM to discuss yours.
A company liquidation lawyer advises on the legal side of closing a company: the owners' decision, the liquidator, creditors, employees, contracts, leases and the final deregistration. MBM also acts where the company cannot pay its debts, where the owners disagree and where a creditor or employee disputes the closure, and it covers free zone, DIFC and ADGM companies. MBM can act as liquidator or advise the liquidator, and we work with your accountant, the liquidator and your PRO, who handle the accounts and government paperwork.
In general terms, a solvent company's owners pass a resolution, a liquidator is appointed, creditors are told, debts are settled, final accounts are prepared, the trade licence is cancelled and the company is deregistered. The detail depends on the company's type and licensing authority, so we confirm the current requirements for your company before you start. See the steps in outline.
As we understand it, liquidation is the winding up of the company's affairs, and dissolution is the end of its legal existence, usually after liquidation. Cancelling the trade licence is a separate step. We explain which stage your company is at and what is left to do.
The owners generally decide in a formal resolution, appoint a liquidator and follow the licensing authority's procedure, including notice to creditors. It is the simplest route when records are complete and everyone agrees. The exact steps still depend on whether the company is mainland, free zone, DIFC or ADGM.
Voluntary liquidation is a closure decided by the owners, generally where the company can pay its debts. The owners pass a resolution, a liquidator winds up the affairs and the company is then deregistered. If you have been reading about "voluntary liquidation UAE" procedures, note that they differ by authority, so check which one licensed your company.
Yes, generally. A free zone company follows its free zone authority's closure procedure, forms and certificates, which differ from the mainland process. DIFC and ADGM companies follow their own regimes through their registrars. We confirm the authority's requirements before you start.
For a Dubai mainland company, the application is generally made to the licensing authority, the Department of Economy and Tourism, after the liquidation steps are complete and the required clearances obtained. Cancelling the licence does not by itself cancel debts, tax registrations or visas. Ask us about the order of steps for your company.
As we understand it, yes. Cancelling the licence does not automatically end the tax registrations. Corporate tax and VAT deregistration, and excise if registered, are separate applications with the Federal Tax Authority, and final returns and tax due generally have to be dealt with first. Requirements change, so we confirm the current position at your first consultation.
In a voluntary liquidation the owners generally propose the liquidator and the authority may need to accept the appointment. Who qualifies depends on the authority and the type of company. As we understand it, the liquidator is often a licensed audit firm or another qualified professional. MBM can act as liquidator or advise the liquidator, and we advise on the choice and on the liquidator's role.
Closing a company generally ends employment contracts, and final dues such as unpaid wages and end-of-service gratuity must be settled according to the contract and the labour law. Visas also need to be cancelled. We advise employers on the order of these steps, and employees can read our labour lawyer in Dubai page.
Visas and the establishment card generally need to be cancelled as part of the closure, in step with the final payments to staff and before the licence is cancelled where the authority requires it. Your PRO or company services provider usually handles the filings. We help you plan the sequence so staff are treated correctly.
Then the closure route needs care. As we understand it, UAE insolvency law (Federal Decree-Law No. 51 of 2023) provides court-supervised routes, including a preventive settlement, but availability depends on the company. Creditors may also apply to court. See banking and finance lawyer in Dubai for restructuring and the lender's side.
Yes, generally. As we understand it, a creditor or sometimes the company applies to the court, which appoints a liquidator and supervises the process. Compulsory liquidation in the UAE is a creditor remedy, and the owners lose control of the timetable. Tell us at once if you have received a demand or a court notice.
It depends on the company, the conduct and the law. As we understand it, directors and managers can face personal exposure if the company later goes bankrupt, with a reported two-year look-back on earlier transactions. Personal guarantees and cheques signed by an owner also stay with that person. We confirm the position before you rely on it.
They continue until they are terminated, completed or transferred in line with their terms, and a landlord may claim for the remaining term. We review the key contracts and the lease before the licence is cancelled. See commercial contracts lawyer in Dubai and commercial tenancy lawyer in Dubai.
First read the articles and any shareholders' agreement, which often set the voting rules and an exit or deadlock process. If that does not resolve it, the options include a negotiated exit, a buy-out or a claim. See shareholder dispute lawyer in Dubai.
Possibly. A sale can suit a business with customers, staff and a lease that a buyer wants, and it may return more than a closure, but it is not always realistic. See M&A lawyer in Dubai.
It depends on the company, the authority and what is outstanding, and no timeline is promised. A solvent company with complete records and agreeing owners is generally faster than one with unknown creditors, staff claims or an unpaid lease. We explain which steps depend on others at the start.
It depends on the route and the complexity. MBM does not publish a price list. We give you a written scope and a fee position before work starts, and we tell you which authority, notice, liquidator and other third-party charges are separate.
Yes. MBM's first consultation is free and confidential. It is a discussion of your company's situation and options, with or without documents. If you then choose to instruct MBM, we give you the scope and fee position before any paid work starts.
The trade licence, the memorandum and articles, any shareholders' agreement, the latest accounts and bank statements, a list of creditors, employees and contracts, the lease and any demand or notice received. You do not need them to make the first call.
MBM has an office in Dubai Media City (Business Central Towers, Tower B) and one in Al Khalidiya, Sharjah (Al Hind Tower). Office Call +971 4 570 0204 or message us on WhatsApp. Your first consultation is free.
Your first consultation with MBM is free and confidential. Tell us briefly what has happened. A member of MBM’s legal team will review your enquiry and come back to you with the appropriate next step.
Tell us briefly which company you want to close and what is holding it up. If you have the trade licence or a shareholders' resolution to hand, send it by WhatsApp or email after you submit the form.
Dubai · Office 3204, Level 32, Business Central Towers – Tower B, Dubai Media City
Sharjah · Office 2001, Level 20, Al Hind Tower, Al Khalidiya District
Tell us what is happening in your own words. We will explain where you stand and what the sensible next step is.
Your first consultation is free and confidential. Tell us which company is closing, who the owners are and what is still outstanding, and we will explain the route and the sensible first step.
