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Compliance & Advisory

Company Liquidation

Registered Tax Agent — Regulated by the FTA

Company liquidation in the UAE is a structured legal process of closing a business, settling liabilities, and ensuring full compliance with the regulatory authorities. Capella handles the entire wind-up end to end so you can exit cleanly while avoiding penalties and legal complications.

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TAN 30000939TAAN 20011987
Company Liquidation — Capella Tax Consultancy
FTA Approved
Compliance & Advisory
8+Years of Expertise
3,500+Clients Served
35,000+VAT Filings
4.9/5Client Rating

What Is Company Liquidation in the UAE?

Company liquidation in the UAE is the formal legal process of closing a business, settling its liabilities, and securing clearance from the relevant regulatory authorities. Done correctly, it ensures your entity is wound up smoothly without leaving behind penalties or legal exposure.

Capella manages the full process, including the appointment of a licensed liquidator, preparation of liquidation reports, clearance of liabilities, and coordination with authorities such as free zones, mainland departments, and banks.

At a glance
  • Appointment of a licensed liquidator
  • Preparation of liquidation reports
  • Clearance of outstanding liabilities
  • Coordination with free zones, mainland departments, and banks

Who Needs Liquidation Services?

Any business looking to formally cease operations in the UAE needs a compliant liquidation to deregister its licence and avoid ongoing penalties. We provide end-to-end support whether you are closing a mainland company, a free zone entity, or an offshore business.

  • Mainland companies winding up operations
  • Free zone entities closing or relocating
  • Offshore businesses ceasing activity
  • Owners seeking a hassle-free, penalty-free exit

Our Liquidation Process

We take care of every stage of the closure so the process is efficient and fully compliant with UAE regulations. Our team ensures all financial obligations, employee settlements, and statutory requirements are properly managed.

This end-to-end approach saves you time, reduces risk, and keeps the wind-up free of complications from start to final deregistration.

  • Settle financial obligations and employee dues
  • Place the mandatory liquidation newspaper notice
  • Obtain bank account closure and clearances
  • Submit the final liquidation report to the authority

Federal Decree-Law 47/2022 (Corporate Tax) and Federal Decree-Law 8/2017 (VAT)

AED 10,000Max Late-Deregistration Fine
45 daysCreditor Notice Period

Documents Required for Liquidation

To begin the liquidation, you will need to provide the following documents:

  • Bank closing letter (or confirmation if no bank account)
  • Notarized board resolution letter
  • Newspaper advertisement copy
  • Trade licence, MOA, passport copy, and Emirates ID
  • Financial statements and supporting documents

Why Capella

As an FTA-registered Tax Agent, Capella Tax Consultancy ensures full compliance with UAE regulations while representing clients with accuracy, integrity, and professionalism. We deliver reliable, personalized support for both simple and complex closures.

  • FTA-registered Tax Agent
  • Qualified, certified professionals
  • Strict data protection and confidentiality
  • Consistent, dependable service you can rely on
Why Capella

Why choose Capella

FTA-registered Tax Agent with full UAE regulatory compliance
End-to-end handling across mainland, free zone, and offshore closures
Penalty-free exit with all liabilities and clearances managed
Strict data protection and confidentiality you can trust
Experienced, certified professionals delivering dependable support
How We Work

Your Liquidation, Managed End to End

01
Step 1

Closure Consultation

We review your entity type, license status and outstanding tax positions, then map a clear liquidation timeline and confirm every authority you must clear.

02
Step 2

Resolution & Liquidator Appointment

We prepare the notarised shareholders' resolution and the liquidator acceptance letter, then file with the DED or Free Zone Authority to formally start liquidation.

03
Step 3

Creditor Notice & FTA Deregistration

We publish the mandatory newspaper notice, manage the 45-day creditor claim window, and file your VAT and Corporate Tax deregistration on EmaraTax within the legal deadlines.

04
Step 4

Final Returns & Liquidator's Report

We settle final tax returns, prepare the liquidator's report and clearance documents, and obtain confirmations from utilities, immigration and banking.

05
Step 5

License Cancellation & Closure

We submit the full file for final license cancellation and hand you the official deregistration confirmations that close the entity for good.

Penalties

What non-compliance costs you

ViolationPenaltyHow Capella helps
Failure to apply for Corporate Tax deregistration within 3 months of ceasing business, liquidation or dissolutionAED 1,000 immediately, then AED 1,000 every month it remains unfiled, capped at AED 10,000We track your cessation date and file the EmaraTax deregistration within the 3-month window, well before any fine triggers.
Failure to apply for VAT deregistration within 20 business days of ceasing taxable supplies or starting liquidationAED 1,000 for the first month, then AED 1,000 per month, capped at AED 10,000We file the VAT deregistration and final return inside the 20-business-day deadline as part of the closure process.
The Capella difference

Numbers that speak for us

900+

Businesses Served

Closures and compliance handled across mainland and free zones

100%

FTA-Registered Agent

Tax deregistration filed correctly to avoid AED 10,000 penalties

4.9/5

Client Rating

Trusted for accurate, on-time business closures

3-6 mo

Typical Closure

Mainland LLC liquidation managed within statutory timelines

How we compare

Why businesses choose Capella

Generic agentsBig-4 / premiumCapella
FTA-registered tax agentOften not Yes Yes
Dedicated account managerVariesTeam-based Yes
Direct WhatsApp access No No Yes
Transparent fixed-fee packagesVariesHigh retainersFrom AED 299/mo
SME & startup focusVariesEnterprise-focused Yes
Accounting, tax & audit under one roofRarely Yes Yes
Local UAE / FTA expertiseVaries Yes Yes
FTA Approved

An FTA-registered & approved tax agency in the UAE.

Tax Agent (TAN): 30000939  |  TAAN: 20011987

Capella Tax Consultancy L.L.C is an FTA-approved Tax Agent in the UAE, helping businesses stay compliant with tax regulations. We provide VAT registration, VAT return filing, tax advisory, compliance reviews, and corporate tax services across all seven Emirates.

DubaiAbu DhabiSharjahAjmanAll UAE
Capella FTA tax agent certificate
FTA Registered Tax Agent
FAQ

Frequently asked questions

Liquidation is the formal process of closing a company, settling its liabilities, deregistering it for tax, and cancelling its trade licence with the DED or Free Zone Authority. You need it whenever you decide to permanently cease operations, as simply abandoning a licence leaves you exposed to accumulating fines and tax penalties.

You must apply to the FTA to deregister for Corporate Tax within 3 months of the cessation or dissolution event, and for VAT within 20 business days of stopping taxable activity. Missing either deadline triggers FTA penalties, so deregistration should be started as soon as the decision to liquidate is made.

Both late VAT and late Corporate Tax deregistration carry a penalty of AED 1,000 for the first month and a further AED 1,000 for each additional month, capped at AED 10,000 per registration. These are separate caps, so VAT and Corporate Tax delays can each accrue up to AED 10,000.

Typical requirements include a shareholders' resolution to liquidate, a liquidator's report, a deregistration/liquidation application, final audited accounts, clearance of all outstanding tax returns and dues, and FTA tax deregistration before the licence is cancelled. The exact steps vary slightly between mainland (DED) and free zone authorities.

Yes. All outstanding VAT and Corporate Tax returns must be filed and any tax, fines, or penalties fully settled before the FTA approves deregistration, and the FTA can take up to a number of business days to process and confirm the application. Tax deregistration is normally a prerequisite for final licence cancellation.

Testimonials

What clients say about Capella.

Capella has been a game-changer for our business. Their team is knowledgeable, responsive, and always ensures we stay compliant.

SME
SME ownerDubai

Professional, proactive, and always available when we need them. They handle our accounting, VAT, and corporate tax with complete accuracy.

TC
Trading companySharjah

Their insights go beyond compliance. Capella helps us understand our numbers better and make smarter financial decisions.

FN
FounderAbu Dhabi
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Let Capella handle the liquidation paperwork and authority coordination so you can close your UAE business cleanly and on time.

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