Closing a business in the UAE can be more costly than many think. It's not only about government fees — the main expenses are incurred from the services of liquidators, auditors, and lawyers. Failure to comply with procedures can also lead to fines.

Let's find out how much it costs to liquidate a company in different jurisdictions of the UAE and how to avoid additional expenses.

What Contributes to the Cost of Liquidation

The cost of liquidation is not a fixed amount — each case is individual. The final sum depends on many factors:

• Where the company is registered. Closing mainland companies is more expensive than in some free zones. Each jurisdiction has its own rates.

• Type and size of the company. An LLC requires more bureaucracy than a simple Establishment. The more complex the structure, the more expensive the procedure.

• Financial condition. Are there debts or disputes with creditors? Be prepared for additional legal costs.

• Urgency. If closure is needed quickly, it will be more expensive.

The total cost of liquidating a company in the UAE consists of several key components. Main expense items:

Government fees — amounts are fixed but can vary considerably across jurisdictions. This includes fees for filing a liquidation application, canceling a trade license, deregistering the company from the commercial register, and other administrative fees. 

Services of a liquidator and auditor —  a significant part of the total costs. Appointing a licensed liquidator for most LLCs is mandatory. They conduct the final audit, prepare the liquidation report, and represent interests in government agencies.

Media publications — the law requires notification of the beginning of the liquidation process through newspapers in Arabic and English. The costs for such publications are also included in the total estimate.

Cancellation of visas — you pay separately for each residence visa and Establishment Card.

Other expenses — notary services, document translations, fees for certificates from utility companies, closing bank accounts, and paying all outstanding fines or penalties.

How Much It Costs in Figures

The exact cost of liquidating a company in the UAE in 2025 is difficult to specify — it depends on many factors. However, based on practice, benchmarks can be highlighted. For small companies with a simple structure, costs usually start from 5 000–10 000 dirhams. For medium and large companies with debts, assets, and an audit — from 15 000 to 50 000 dirhams and more. Prices can change depending on inflation, government agency rates, and the specific situation, so it's recommended to clarify current amounts before starting the procedure.

Mainland Companies

Dubai (DED/DET): 15,000–20,000 dirhams for the full procedure. Only the initial cancellation of the license costs around 2,010 dirhams.

Abu Dhabi (ADDED): basic government fees — less than 500 dirhams. However, the bulk of the costs will be the services of the appointed liquidator and other related expenses, so the total cost will be significantly higher than the basic fees.

Free Economic Zones

The cost of liquidation in free zones varies greatly from one zone to another:

DMCC: the official fee for liquidation (Company Deregistration - Winding Up) — 4,015 dirhams. For companies with more than one active license or as part of an overall closure process, a fee for license termination applies — 2,000 dirhams. The total cost including liquidator services is 8 000–15 000+ dirhams.

JAFZA: the deregistration costs 6,500 dirhams, full procedure — 10,000–15,000+ dirhams.

DIFC and ADGM: there is no fixed rate for liquidation — the final cost depends on the complexity of the case, the amount of work, and the liquidator's fees. The procedure requires appointing an approved liquidator and follows the strict standards set by internal legislation. In both cases, a thorough and costly audit of all aspects of the company's activities is required.

RAKEZ (Ras Al Khaimah Economic Zone): the cost of liquidation depends on the type of company, its size, and the presence of debts. The procedure can take up to 90 days. For offshore companies RAK ICC (jurisdiction close to RAKEZ), the estimated cost of liquidation services is from 3,000 to 7,000 dirhams. Additional expenses are not included in this amount.

SHAMS (Sharjah Media City): the official liquidation fee is 2,000 dirhams.

KIZAD (Khalifa Industrial Zone Abu Dhabi): the registration fee for liquidation is 2,625 dirhams. The process takes about a month and requires the appointment of an auditor as the liquidator.

DSO (Dubai Silicon Oasis):  the estimated cost of closing a company is around 2,000 dirhams. The procedure includes cancellation of visas, Establishment Card and license.

It is important to note that low official fees do not reflect the full cost of the procedure. Liquidator services can cost from 2,500 to 15,000 dirhams, and legal support may add another 10,000–25,000 dirhams.

Possible Fines When Liquidating: A Comprehensive Overview

Liquidating a company in the UAE is not just a formality but also an audit: whether the business has fulfilled all its obligations to the state, tax authority, employees, and visa authorities. Mistakes at this stage can lead to significant fines — both for procedural miscalculations and for shortcomings in documents, taxes, and visas.

Below is an overview of the key risks and fines that businesses may face when closing a company in the Emirates.

1. Fines for Breaching Liquidation Timelines and Procedures

Incorrect document submission, missing publication deadlines in the media or notifications to regulators, as well as the absence of an appointed liquidator where this is a mandatory condition in a specific zone or form of company — can lead to administrative sanctions.

Examples:

• In DMCC, a fine is imposed if the liquidation dossier is not submitted within 30 days, as well as 200 dirhams for each day of delay.

• Absence of corporate records (registers, minutes) — 10,000 dirhams for the first violation.

2. Tax Fines When Liquidating

After closing a company, tax authorities review the correctness of the VAT and corporate tax calculations. Violations can lead to the following penalties:

• Late deregistration: 1,000 dirhams for each month of delay (maximum — 10,000 dirhams).

• Late filing of a declaration: 500 dirhams for each month (the first 12 months), then — 1,000 dirhams.

• Late payment of tax: 14% per annum on the amount.

• Errors in the declaration: starting from 500 dirhams, with a possibility of exemption from the fine upon self-correction.

• Incorrect pricing accounting for VAT: 15,000 dirhams.

• Incorrect invoicing: up to 15,000 dirhams.

• Failure to issue invoices: 5,000 dirhams for each case.

3. Fines for Visa Violations

When liquidating a company, it is necessary to cancel all employee and founder visas. For non-fulfillment, fines are imposed:

• Active visa for a non-operating company: 20,000 dirhams.

• Uncancelled visas: the fine is determined by immigration authorities.

• Providing incorrect ICP data: 3,000 dirhams.

4. UBO: Beneficial Owners and Corporate Transparency

The company is required to maintain and timely submit a register of beneficial owners (UBO). Violations will result in the following sanctions:

• written warnings,

• fines ranging from 50,000 to 100,000 dirhams.

5. Non-compliance with AML/CFT Requirements

Even if a company is closing, it may still have unmet obligations in the area of anti-money laundering (AML) and counter-terrorism financing (CFT). For this, it provides for:

• fines — up to 1,000,000 dirhams and more, depending on the severity of the violation.

Repeated Violations

Fines for repeated violations are usually twice as high. For example:

• For failure to keep records — 20,000 dirhams upon repetition;

• For failure to provide information — from 5,000 to 10,000 dirhams.

This progression shows that regulators are focused on eliminating systemic violations rather than one-time penalties.

Table: “Main Types of Fines When Liquidating a Company in the UAE”

How to Save and Avoid Fines When Liquidating

Every step in closing a business must be calculated — from notifying to canceling all obligations. Liquidation is not just an end but a final audit of your compliance. 

Plan ahead. Don't wait until the last minute — rushing at the end costs more.

Keep documents in order. Most problems during liquidation stem from neglected records and violations committed while the company was operational.

Hire professionals. Trying to save on consultants often backfires. Experienced lawyers and auditors can help avoid mistakes and fines.

Comply with all requirements. Taxes, visas, UBO, corporate reporting — keep track of everything throughout the life of the company.

The best way to close a company cheaply is to initially run the business correctly. Liquidation simply reveals all accumulated problems. If there are none — the procedure will go quickly and without surprises.

The indicated prices are approximate and may change. Before starting the procedure, clarify the current cost with the relevant authorities.