Close the company and the tax records properly
Company liquidation and tax deregistration in the UAE
Closing a UAE company is more than cancelling the trade licence. The company also has to deregister for VAT and deregister for corporate tax with the Federal Tax Authority, file its final returns, and settle what it owes. A licence cancelled while tax registrations stay open can leave returns, and penalties, building up in EmaraTax.
With UAE Accountant you send one free request describing the company you want to close, where it is licensed and its tax registrations. Up to three licensed accounting and tax firms contact you with quotes. We are a matching service and do not give legal or tax advice.
What a liquidation and deregistration service covers
Firms usually combine accounting, tax and closure work. A typical scope:
Closing accounts
Bringing the books up to date and preparing final financial statements up to the closing date.
VAT deregistration
Applying to the FTA to cancel the VAT registration on time and filing the final VAT return.
Corporate tax deregistration
Applying to deregister for corporate tax on EmaraTax and preparing the final corporate tax return.
Settling balances
Collecting receivables, paying suppliers and staff final settlements, and clearing tax payable or refundable.
Licensing authority steps
Supporting the closure process with your mainland or free-zone licensing authority, which sets its own steps and documents.
Records after closure
Organising the records you must keep. Corporate tax records must be kept for 7 years.
Who needs this service?
Typical situations:
- Dormant companies
Companies that stopped trading but still have a licence, a TRN and a corporate tax registration.
- Owners leaving the UAE
Businesses closing because the owner is relocating or retiring.
- Group restructures
Groups merging entities or closing a mainland or free-zone company they no longer need.
- Businesses below the VAT threshold
Companies whose taxable supplies over 12 months have fallen under the voluntary threshold of AED 187,500 and may need to deregister for VAT.
- Failed or finished projects
Special-purpose companies whose project has ended.
Deregistration deadlines
The VAT timelines are fixed. Missing them is one of the most common closing mistakes.
| What | Deadline | Source |
|---|---|---|
| Apply for VAT deregistration | Within 20 business days after the business stops making taxable supplies, or once 12-month supplies fall under the voluntary threshold | FTA, Cabinet Decision 52 of 2017 |
| Final VAT return | Within 28 days of the deregistration date | FTA |
| Corporate tax deregistration | Required when closing. Ask a tax agent for the timeline that applies to you | FTA |
| Keep corporate tax records | 7 years | Ministry of Finance |
Tax penalties were revised in April 2026. A tax agent can check what applies to you. See how to avoid UAE tax penalties.
What to prepare
- Trade licence, memorandum of association and shareholder details.
- Your TRN and corporate tax registration number, and EmaraTax access.
- Up-to-date books, bank statements and the last filed VAT and corporate tax returns.
- The date the business stopped trading or making taxable supplies.
- Lists of open receivables, payables, assets and employees.
- Shareholder resolutions about the closure.
- Contact details for your licensing authority (mainland or free zone).
If the books are behind, ask for bookkeeping in the same request. The final returns depend on it.
What affects the fee
Closing costs depend on how tidy the company is at the end. The main factors:
State of the books
Missing months or unfiled returns must be dealt with before closure.
Tax registrations
VAT and corporate tax deregistration, and any outstanding returns, are separate pieces of work.
Licensing authority
Mainland and free-zone authorities have different closure steps and documents.
Assets, staff and contracts
More to sell, settle or transfer means more work.
Audit needs
If the company needs audited statements for its last period, for example as a QFZP or because its free-zone authority asks, that adds an audit.
What to ask a firm before you choose
Ask each firm:
- Is your tax agent registered with the FTA and linked to a registered tax agency? What is the agency number?
- Will you handle both VAT and corporate tax deregistration and the final returns?
- Do you know the closure steps of my licensing authority or free zone?
- If an audit is needed, is your auditor licensed by the Ministry of Economy and Tourism?
- What will you need from me, and by when?
Mistakes to avoid: cancelling the trade licence and forgetting the FTA registrations, missing the 20-business-day VAT window, and throwing away records the company must keep. Appointing a tax agent does not remove the company’s own responsibility. We ask each partner for its trade licence and, where relevant, its FTA tax agency number.
How to get liquidation quotes
- 1
Send one request
Choose company liquidation, and tell us the emirate or free zone, your registrations and when trading stopped. It is free.
- 2
Firms contact you
Up to three licensed firms ask about your books and registrations and send a quote with a plan.
- 3
Compare and choose
Compare scope, timing and who handles each authority, then choose one firm.
Available in these emirates
Liquidation and deregistration: common questions
Do I need to deregister for VAT when I close my company?
Yes. Apply within 20 business days after the business stops making taxable supplies, then file the final return within 28 days of the deregistration date. See VAT return filing.
Do I need to deregister for corporate tax too?
Yes. Closing a company needs corporate tax deregistration as well. Ask a tax agent about the timeline and the final return.
Does cancelling the trade licence close my tax registrations?
No. Licensing authorities and the FTA are separate. The VAT and corporate tax registrations have to be closed with the FTA.
Can I deregister for VAT without closing the company?
In some cases, for example when 12-month taxable supplies fall under the voluntary threshold of AED 187,500. A tax agent can check your position.
How long must I keep the records?
Corporate tax records must be kept for 7 years. Ask the firm what else you should keep.
Is the process different in a free zone?
The tax steps with the FTA are the same. The licence closure follows your free-zone authority’s rules. See our free zones pages.
Related services
Get quotes to close your company
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