Closing a business on the mainland

Learn how to cancel your business licence and all related permits associated with it.

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Closing a business on the mainland

No matter what type of business you own, you must cancel your business licence and all related permits, when you have made your decision to close it down. This page provides a summary of the formalities for closing your business and cancelling its licence properly.

 

Why cancelling the licence is a requirement upon business closure?

It is important for relevant government entities to know that you are no longer in the business so you can avoid incurring fines and penalties for not renewing your licence.

 

Formalities for cancelling your business licence

In the case of establishment and branches, the application to cancel the licence is to be submitted by the party concerned. In the case of companies, the application is to be submitted by the liquidator.

 

For cancelling the licence in the emirate of Abu Dhabi, you need to apply to Department of Economic Development with the following documents:

  1. Certificate of acceptance of the liquidator
  2. Court decision
  3. Initial service agent contract termination
  4. Minutes of Meeting on the liquidation of the company
  5. initial service agent contract termination (for establishments).

 

Steps for closing a business in the emirate of Dubai involves:

For sole proprietorship

  1. Cancellation of labour cards through the Ministry of Human Resources & Emiratisation.

 

For a civil company

  1. Cancellation labour cards through the Ministry of Human Resources & Emiratisation.
  2. A duly notarised partnership termination contract.

 

For the de-registration of a company

This is applicable to all legal forms of commercial companies.

Phase 1:

  1. Notarised minutes of the General Assembly meeting confirming the company liquidation, and the appointment of a liquidator (whose name must be mentioned).
  2. A letter issued by the liquidator accepting to liquidate the company along with their documents (copy of the licence, auditor registration certificate, a notarized signature specimen).
  3. Payment of AED 520 for the certificate of the company's dissolution and liquidator appointment, subject to the legal advisor's approval.
  4. Announcement of liquidation in two Arabic local newspapers for one day only, allowing debtors 45 days to submit their claims.

Phase 2:

  1. Submission of the original newspaper in which the announcement was published as well as the company’s final report.
  2. A declaration letter from the liquidator and the partners stating no objections were received from any other parties within 45 days from the date of the announcement.
  3. Cancellation of labour cards through the Ministry of Human Resources & Emiratisation.
  4. A copy of the minutes of the General Assembly meeting and a copy of the certificate of dissolution.

 

For the branch of a foreign company

  1. The decision to liquidate the company from the Ministry of Economy's register.
  2. An attested decision issued by the Board of Directors to cancel the company.
  3. Cancellation of labour cards through the Ministry of Human Resources & Emiratisation.

 

For the branch of a local company

  1. The decision of the Board of Directors to cancel the company.
  2. Cancellation of labour cards through the Ministry of Human Resources & Emiratisation.

 

For cancelling the licence in the emirate of Sharjah, you need to apply to Economic Development Department with the letter of cancellation of the establishment card from the Ministry of Human Resources and Emiratisation.

 

In the emirate of Ajman, you need to apply to Department of Economic Development with documents based on type of business.

Sole Proprietorship

  1. 15 days for newspaper advertisement

 

Limited Liability Company

  1. Letter of Termination of the Partnership Contract - 45 days for external newspaper advertisement
  2. Proof of the identity of the stakeholders
  3. Letter from the auditor (for companies)
  4. A certificate from the General Assembly to cancel the company
  5. A letter from the auditor stating that there is no objection after completing the announcement.
Updated on:

06 Apr 2026

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