Winding down a company in Dubai is a sensitive and structured process—especially if your business operates under a mainland license. Whether your decision to close is due to shifting strategies, market changes, or natural business progression, it’s essential to cancel your trade license properly to avoid future liabilities, fines, or legal complications.

We specialize in helping businesses navigate this process smoothly and in full compliance with UAE regulations. In this guide, we’ll explain everything you need to know about company cancellation in Dubai mainland, with a focus on the role and importance of the liquidation report.

What Is a Liquidation Report?

A liquidation report is a mandatory document prepared by an approved audit firm, detailing the financial status of your business at the time of closure. It confirms that the company has no outstanding debts, obligations, or pending liabilities—essentially declaring the company fit to be legally dissolved.

This report is a core requirement for businesses seeking to cancel their mainland license through the Dubai Department of Economy and Tourism (DET).

Why Is the Liquidation Report So Important?

The liquidation report serves several crucial purposes:

• Ensures legal compliance with DET and other government authorities

• Protects shareholders, partners, and employees by showing all dues are cleared

• Prevents future penalties or renewals for a business that no longer operates

• Facilitates final approvals from labor, immigration, FTA, and utility departments

Without this report, your company cancellation request cannot move forward.

Step-by-Step: Dubai Mainland License Cancellation Process

At Khidmath, we handle this process end-to-end for our clients. Here’s how it typically works:

1. Board Resolution

The shareholders agree to dissolve the company via a notarized resolution.

2. Appointing a Liquidator

You’ll appoint a certified audit firm (which we can help you arrange) to prepare the liquidation report.

3. Initial Cancellation Request

Khidmath will submit the necessary documents to DET for the initial cancellation certificate.

4. Public Notice

A 30-day notice is published in two newspapers (Arabic & English), giving creditors time to raise claims.

5. Liquidation Report Preparation

Once the notice period ends, the appointed liquidator will issue the final liquidation report.

6. Government Clearances

We will assist you in obtaining clearances from:

• Ministry of Human Resources and Emiratisation

• General Directorate of Residency and Foreigners Affairs (Immigration)

• Federal Tax Authority (if VAT-registered)

• Dubai Municipality, DEWA, and telecom providers

7. Final Submission

The final liquidation report and clearance letters are submitted to DET to obtain the official license cancellation certificate.

Documents Required for Company Liquidation

To complete the process, the following documents are typically required:

• Trade license copy

• MOA (Memorandum of Association)

• Shareholders’ passport & Emirates ID copies

• Board resolution for liquidation (notarized)

• Latest audited financial statements

• Liquidator appointment letter

• Clearance from DEWA, Etisalat/Du

• Labour & Immigration clearance letters

• VAT de-registration confirmation (if applicable)

• Copy of the liquidation newspaper notice

• Original company documents and licenses

Why Choose Khidmath Corporate Services?

At Khidmath Corporate Services, we understand that company cancellation can be overwhelming, especially when it involves government coordination, legal formalities, and financial reporting. That’s why we offer end-to-end liquidation support, including:

• Drafting and submitting cancellation requests

• Liaising with audit firms for liquidation reports

• Managing public notice publication

• Securing government clearances

• Ensuring smooth, penalty-free closure

Whether you’re a small consultancy or a multi-partner mainland company, our experienced team will ensure your exit is seamless, compliant, and stress-free.

What Is the Cost to Cancel a Company in Dubai Mainland?

The cost of cancelling a mainland company in Dubai can vary depending on the business activity, number of visas, and whether the company is registered under Dubai Municipality or Dubai Chamber. Below is a general overview of the expected expenses:

Average Cost Range

For most mainland companies, the average cancellation cost ranges between AED 7,000 to AED 15,000. This includes:

• DET (Department of Economy and Tourism) fees

• Liquidation report by an audit firm

• Newspaper publication (liquidation notice)

• Service provider/admin fees

• Final government clearances

Cost If Registered Under Dubai Municipality

If your company’s primary activity falls under Dubai Municipality regulation (e.g., construction, contracting, or technical services), the process typically involves more steps and extra clearances.

• Estimated Total Cost: AED 10,000 – 15,000

• Why Higher? Additional requirements from DM include inspections, NOCs from planning/building departments, and clearance from DEWA or waste management (if applicable).

Cost If Registered Under Dubai Chamber

Companies operating under Dubai Chamber activities (e.g., consulting, trading, or commercial businesses) usually face a more streamlined closure process.

• Estimated Total Cost: AED 7,000 – 10,000

• Why Lower? Dubai Chamber companies typically require fewer inspections and documentation for final clearance.

Optional/Additional Costs

• VAT De-registration (if applicable): AED 500–1,000

• Labour & Immigration file clearance: AED 500–1,000

• Legal translation or document attestation: AED 300–600

Final Thoughts

Company liquidation is more than just stopping operations—it’s a regulated process that requires thorough documentation, especially the liquidation report. Skipping or mishandling any step can result in fines, legal complications, or even visa blocks.

We provide transparent, all-inclusive company cancellation packages starting from AED 6,999, depending on your activity and complexity. Our team ensures your liquidation report, newspaper notice, and government clearances are all handled efficiently.

Contact us today for a free consultation on company cancellation and liquidation services in the UAE.