- Cancel ALL employee and investor visas before submitting a deregistration application — this is the most common blocking step.
- Visa cancellation costs AED 300–1,500 per visa and takes 5–15 working days each.
- Free zone deregistration fees range from AED 500 (IFZA, SHAMS) to AED 5,000+ (DMCC).
- Total closure cost for a one-visa company typically falls between AED 1,300 and AED 7,000.
- A struck-off company can usually be reinstated within a 1–3 year window by paying all arrears plus AED 3,000–10,000+ in reinstatement fees.
- Corporate Tax and VAT deregistration with the FTA (eservices.tax.gov.ae) is mandatory and free of charge.
Updated August 2026 — Closing a UAE free zone company is a structured, multi-step process that must be completed in a specific sequence. Miss a step — or complete them out of order — and the free zone authority will reject your deregistration application. This guide covers every stage from start to finish: visa cancellation, bank account closure, FTA tax deregistration, and the formal application to the free zone. It also covers the parallel route for companies that have already been struck off for non-renewal.
Why Companies Close Their UAE Free Zone Licences
Companies deregister for a range of reasons. The most common include:
- Licence lapsed or non-renewal: The owner stopped renewing and now needs to understand the consequences or formally close the file.
- Business not viable: Revenue targets were not met and the owner is cutting losses before the next renewal cycle hits.
- Owner relocating: Leaving the UAE for another country and no longer needing the entity.
- Corporate restructuring: Consolidating multiple entities or shifting operations to a new jurisdiction.
- Activity change: The permitted activity under the licence no longer matches the actual business, and it is cheaper to close and reopen fresh than to amend.
Your reason matters because it determines which of the two closing routes applies to you.
Two Routes to Close: Voluntary Deregistration vs. Struck Off
| Factor | Voluntary Deregistration | Struck Off (Non-Payment) |
|---|---|---|
| How it starts | Owner initiates the process voluntarily | Zone authority acts automatically after 6–12+ months of non-payment |
| Pre-condition | All fees current, visas cancelled, bank NOC obtained | No action required — fees simply go unpaid |
| Company status | Good standing throughout the process | Licence void; name removed from register |
| Director liability | Limited; debts settled before closure | Unpaid amounts may become personal liability of directors |
| Bank impact | Minimal if managed correctly | Bank may freeze or close account; potential credit implications |
| Reversal possible? | No — once complete, it is permanent | Yes — reinstatement within 1–3 year window (AED 3,000–10,000+) |
| Outcome document | Certificate of Deregistration issued to the owner | Strike-off notice issued by the zone; no certificate given to owner |
Voluntary Deregistration: Step-by-Step Process
Complete these six steps in order. Free zone authorities verify each stage before accepting your application. Attempting to submit before completing earlier steps will result in rejection.
Step 1: Cancel All Visas — Do This First
This is the most critical sequencing rule: every residence visa sponsored by the company — investor visas, partner visas, and employee visas — must be formally cancelled before the free zone will accept a deregistration application.
- Cost per visa: AED 300–1,500 (varies by zone)
- Timeline: 5–15 working days per visa
- After cancellation, the visa holder must either exit the UAE or change status to another sponsor
- Collect the cancelled Emirates ID for each holder — you will need this as evidence
- If staff are on MOHRE work permits, those permits must also be cancelled alongside or before the visa cancellation
If you have multiple visa holders, all cancellations run through the zone portal sequentially, and the timeline accumulates. Plan this step first, and start it as early as possible.
Step 2: Close the Corporate Bank Account and Obtain a Bank NOC
Submit a formal account closure request to your bank. The free zone will require a No Objection Certificate (NOC) or official account closure confirmation letter as part of your deregistration application.
- Clear all outstanding transactions, unsettled balances, and standing orders before making the closure request
- Bank account closure typically takes 7–30 business days from the date of written request
- Bank closure fee: AED 0–500 (many banks charge nothing; some charge an administrative fee)
- Keep the bank NOC or closure confirmation letter securely — it is a required document in Step 5
Step 3: MOHRE and WPS Clearance (Employees Only)
If the company employed staff under MOHRE-regulated contracts, you must obtain labour clearance before deregistering.
- Confirm there are no pending MOHRE complaints or active labour disputes
- Pay all final salary settlements and end-of-service gratuity through the Wage Protection System (WPS)
- Obtain MOHRE clearance confirmation where required by your specific zone
Single-shareholder freelancer licences or companies that never had MOHRE-registered employees can skip this step entirely.
Step 4: Deregister for Corporate Tax and VAT with the FTA
Since UAE Corporate Tax came into effect in June 2023, every registered company must formally deregister with the Federal Tax Authority when ceasing operations.
- Submit a CT deregistration application via eservices.tax.gov.ae
- If also VAT-registered: submit the VAT deregistration application first, wait for FTA confirmation, then proceed with CT deregistration
- Both CT and VAT deregistration are free of charge
- The FTA may request supporting documents confirming the business has ceased trading — allow additional processing time if so
- Keep both confirmation documents — the free zone will typically require them as part of your application package
Step 5: Submit Deregistration Application to the Free Zone
With all prior steps complete, submit the formal deregistration application through your free zone’s online portal or in-person service centre. Documents typically required:
- Completed deregistration application form (zone-specific)
- Proof of visa cancellation for all visa holders
- Bank NOC or account closure confirmation letter
- FTA CT deregistration confirmation (and VAT deregistration if applicable)
- Proof that all outstanding zone invoices and fees have been settled
- Board resolution authorising deregistration (required by some zones, particularly DMCC)
Pay the deregistration fee at this stage. See the cost table below for zone-by-zone figures.
Step 6: Receive Your Certificate of Deregistration
Upon approval, the free zone authority issues a Certificate of Deregistration confirming that the company has been formally removed from the commercial register. Store this document permanently — you may need it for future tax filings, banking applications in other countries, or immigration purposes.
Total Cost to Close a UAE Free Zone Company
| Expense | Typical Cost (AED) | Notes |
|---|---|---|
| Visa cancellation (per visa) | 300 – 1,500 | All visas must be cancelled before the deregistration application is accepted |
| Bank account closure | 0 – 500 | Many banks charge nothing; some levy a small administrative fee |
| Free zone deregistration fee | 500 – 5,000+ | Highly zone-specific — DMCC is at the upper end; IFZA and SHAMS at the lower end |
| FTA tax deregistration (CT and/or VAT) | Free | Processed via eservices.tax.gov.ae at no charge; mandatory if registered |
| MOHRE / WPS final settlements | Varies | End-of-service gratuity and final salaries must be paid via WPS; applies only if employees were on MOHRE contracts |
| Total (1 investor visa, no MOHRE employees) | 1,300 – 7,000 | Range driven primarily by which free zone you are in |
Zone-Specific Deregistration Notes
Each free zone operates its own deregistration process with its own fee schedule. The four most commonly encountered are:
| Free Zone | Approx. Deregistration Fee | Key Requirements & Notes |
|---|---|---|
| DMCC | AED 5,000+ | Formal liquidation process; Board resolution required; most involved process among the major free zones |
| IFZA (International Free Zone Authority) | AED 500 | Simpler, portal-driven process; AED 500 deregistration fee applies only if all annual fees are current at time of application |
| SHAMS (Sharjah Media City) | AED 500 – 1,000 | Straightforward process: cancel visa, clear all fees, pay deregistration fee — relatively quick turnaround |
| Mainland / DED | Varies significantly | More complex than free zone: requires audited financial statements, legal representation, and DED approval — not covered by this guide |
Always verify current fees directly with your zone authority before beginning the process. Fee structures are updated periodically and the figures above reflect 2026 rates.
Struck Off: What Happens and How to Reinstate
If a company fails to renew its licence for an extended period — typically 6 to 12 months or more of non-payment, depending on the zone — the free zone authority will automatically strike off the company. This is not a clean deregistration and carries different consequences.
Consequences of Being Struck Off
- The company name is removed from the register; the licence is legally void
- Any unpaid amounts — renewal fees, fines, outstanding invoices — may become the personal liability of the directors or shareholders
- Banks may freeze or involuntarily close the corporate account; this can affect the owners’ personal banking relationships in some cases
- The company cannot legally operate, issue invoices, or sponsor visas from the point of strike-off
Reinstatement (Within the Window)
Most free zones allow reinstatement within a window of 1 to 3 years after strike-off. To reinstate, you typically need to:
- Pay all outstanding renewal fees for every lapsed year
- Pay accumulated fines and zone penalties
- Pay the reinstatement fee — typically AED 3,000 to AED 10,000+ depending on the zone and the length of lapse
- Resolve any outstanding visa or MOHRE obligations
Once reinstated, the company returns to active standing. If your goal is a clean closure, the recommended path is to reinstate first (pay all arrears) and then immediately begin the voluntary deregistration process to obtain a formal Certificate of Deregistration.
After the Window Closes
If the reinstatement window has passed, the company is permanently struck off with no reinstatement route. If you need a UAE entity again, a new company must be incorporated from scratch. There is no mechanism to revive a permanently struck-off entity.
Frequently Asked Questions
Do I have to cancel visas before applying to close the company?
Yes, this is a mandatory pre-condition. Every free zone authority requires proof that all residence visas sponsored by the company — investor visas, employee visas, and partner visas — have been formally cancelled before it will accept a deregistration application. This is the single most common reason deregistration applications are rejected. Budget 5–15 working days per visa and begin this step as early as possible, especially if you have multiple visa holders.
How long does closing a UAE free zone company take from start to finish?
The realistic timeline for a straightforward single-visa company is 6 to 12 weeks from the date you begin visa cancellation. Companies with multiple employees, active VAT registrations, or complex banking arrangements should plan for 3 to 6 months. The pace is largely set by how quickly the bank issues its NOC (7–30 days) and how the free zone authority processes the deregistration application after submission (typically 2–4 weeks).
What happens to my bank account if I just stop renewing my licence and let it lapse?
When a company is struck off for non-renewal, the bank account does not automatically close. However, banks perform periodic KYC reviews, and an expired or void licence will trigger a review that can lead to the account being frozen or closed without notice. Any outstanding balance becomes difficult or impossible to access, and the unpaid zone fees may become a personal liability of the directors. It is always cleaner — and cheaper — to close the bank account formally as part of a planned deregistration before the company is struck off.
Is deregistering from VAT and Corporate Tax with the FTA free?
Yes. Both VAT deregistration and Corporate Tax deregistration are processed via the Federal Tax Authority’s eServices portal (eservices.tax.gov.ae) at no charge. They are not triggered automatically by the free zone deregistration — you must submit the applications separately. If the company was VAT-registered, submit VAT deregistration first and wait for FTA confirmation before submitting the CT deregistration. Keep both confirmation letters, as the free zone may request them as part of your deregistration package.
My company was struck off years ago. Can it still be reinstated?
Possibly, but only if you are still within the reinstatement window, which is typically 1 to 3 years from the strike-off date and varies by zone. Contact your zone authority directly to confirm whether the window is still open. If reinstatement is available, expect to pay all outstanding renewal fees for every lapsed year, accumulated fines, and a reinstatement fee of AED 3,000 to AED 10,000 or more. If the window has closed, the company is permanently struck off — no reinstatement route exists, and you would need to incorporate a new entity if you require a UAE presence.