The first step in the company closure process is obtaining approval from the appropriate government authorities. Depending on the type of business and its jurisdiction, this may be the Department of Economic Development (DED) or the Free Zone where the company is registered. An application for liquidation must be submitted and approved before proceeding further.

This includes settling payments with creditors, paying employee salaries and end-of-service benefits, and resolving any outstanding tax matters. Failure to meet these obligations may lead to penalties and delays in the liquidation process.

After receiving approval and fulfilling obligations, it is usually necessary to publish a deregistration notice in local newspapers or media. The publication should include information about the company name, the reason for closure, and the applicable notice period.

If the company has active employment visas for staff or residency visas for shareholders, these must be cancelled. This process requires coordination with the relevant immigration authorities. It is important to ensure that all visas are properly cancelled to avoid fines or delays.

In some cases, an audit of the company is required before closure. This helps confirm that all financial records and reports are in order. The audit may be conducted internally or by an external licensed audit firm.

Once all previous steps are completed, the final document package can be prepared and submitted. This usually includes:
→ Company license.
→ Incorporation documents.
→ Shareholders’ resolution confirming the decision to liquidate the company and appointing the responsible person.
→ Official liquidation application form.

The final step is closing the company’s corporate bank accounts. The bank must be formally notified that the company is ceasing operations.
 
The average time required for full liquidation of a legal entity in the UAE ranges from several months to one year. The process may take longer depending on the complexity of the business and the existence of outstanding obligations.