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The trade license cancellation cost in Dubai and the other emirates is only part of what it costs to close a free zone company. First the company is liquidated: audited, announced, cleared of visas and debts. Then the zone cancels the licence and issues a certificate. RAKEZ publishes the whole route, with a cancellation fee of AED 3,000 for coworking or office companies and AED 4,500 for industrial ones, plus external fees.
Liquidation and deregistration
People use the words loosely, but the order is fixed. Liquidation settles the company's affairs: final accounts, debts, staff, visas and a public notice so creditors can come forward. Deregistration, or cancellation, is the zone removing the company from its register once that is done.
Skipping this and walking away is costly. An expired establishment card draws ICP late fees of AED 100 a month, up to AED 1,000. The Dubai Development Authority zones, such as Dubai Internet City, list late renewal penalties of AED 2,500 to AED 10,000. Those keep running against a company that still exists on paper.
How RAKEZ runs it
RAKEZ's liquidation service card lists seven steps:
- Appoint an approved liquidator.
- The liquidator audits the company, writes the liquidation report and publishes a 45 day public notice.
- Cancel employee visas.
- Apply for de-registration in RAKEZ 360.
- Upload the documents.
- Pay the invoice.
- Receive the cancellation certificate.
The notice takes 45 days and processing takes 5 working days after that. The fee is AED 3,000 for coworking or offices, or AED 4,500 for warehouse or land, before immigration, chamber of commerce and any mainland charges.
Cancellation fees other zones publish
| Free zone | Fee | What it is |
|---|---|---|
| RAKEZ | AED 3,000 or AED 4,500 | Cancellation, office or industrial |
| Ajman Free Zone | AED 2,500 | Licence cancellation (another guide quotes less) |
| KEZAD | AED 500 | Establishment card cancellation |
| Shams Free Zone | AED 2,100 | Deposit on cancelling the last shareholder visa |
| In5 (Dubai) | AED 1,000 | Deregistration for In5 licensees |
Source: RAKEZ liquidation service card, Ajman Free Zone FAQ, KEZAD tariffs, Shams terms and the DDA licence categories decision, checked .
What agencies charge to close a company
Two agencies publish free zone liquidation prices of about AED 5,000 to AED 15,550 (published prices of 2 agencies, checked ). The low end is a cost guide figure from one agency, not a fixed package. The top is another agency's price for a Jafza company. That second agency's IFZA early stage package shows what a full closure includes: the audit, a board resolution, one visa cancellation, the establishment card, and VAT and corporate tax deregistration. Neither price is ours.
Before you file
- Stop renewing commitments: lease, flexi desk and subscriptions.
- Collect what the company is owed and pay what it owes.
- Get the final accounts audited if the zone or the liquidator needs it. See audit for a free zone company.
- Cancel every employee visa. RAKEZ lists this as step three, before deregistration.
- Deregister for VAT and corporate tax if you registered, before the licence goes. The VAT certificate guide covers the deregistration certificate.
- Keep the bank account open until the last fee is paid.
How we help you close
Tell us the zone, the number of visas, the office type and whether you hold VAT or corporate tax registrations. We pass it to a licensed partner who handles liquidations in that zone. They quote one total for the liquidator, the notice, the cancellations and the zone fees before they start. We are a directory, not a free zone or a liquidator, so the zone issues the final certificate.
Documents you will need
- Shareholder resolution to liquidate and appoint the liquidator
- Current licence, MOA and establishment card
- Audited final accounts or the liquidator's report
- Visa cancellation papers for every visa holder
- Proof the lease is ended and no amounts are due to the zone
- Passport copies of shareholders and the manager
Timing
Build the plan around the notice. At RAKEZ it is 45 days, and nothing after it can start early. The audit and visa cancellations can run before and during the notice. Processing after the notice is 5 working days at RAKEZ. Other zones do not publish times, so ask for one in the quote.
Mistakes to avoid
- Letting the licence expire instead of cancelling it.
- Starting the newspaper notice late, which pushes every later step back.
- Closing the bank account while fees are still due.
- Forgetting tax deregistration.
- Missing a deposit held by the zone, like the Shams last visa deposit.
Partners leaving rather than the whole company closing is a different job: see partner visa Dubai and license amendment. Use the form here to describe your company, and we send it to a licensed partner for a closure quote.
Sources
- https://rakez.com/en/service-cards/company-services/liquidation : RAKEZ steps, timing and cancellation fees
- https://afz.gov.ae/en/help-and-support/faqs.html : Ajman Free Zone cancellation fee
- https://www.kezadgroup.com/en/business-facilities/tariffs : KEZAD establishment card cancellation
- https://shamsfz.ae/terms-and-conditions/ : Shams last shareholder visa deposit
- https://dda.gov.ae/-/media/67662280247F46F2B94A853943F014C4.pdf : In5 deregistration fee and DDA late renewal penalties
- https://icp.gov.ae/en/services-details/?serviceid=64afe3c1035448005bd52e6e : establishment card late fees
- https://arnifi.com/pricing-master-list/liquidation : agency liquidation prices by zone
- https://www.rizmona.com/business-support-services/company-liquidation-dubai : agency liquidation cost guide
