Liquidating a company in the UAE has no single published price. The fixed statutory figures are the penalties — AED 500 for each month a corporate tax return is late and up to AED 10,000 for a late corporate tax deregistration application — while the costs that dominate the bill (licence cancellation, a liquidator and final audit, visa cancellations) are set by your free zone or emirate and vary by authority. What the law does fix is the clock: the deregistration application is due within 3 months of the company ceasing to exist, and the FTA processes a completed application within 40 working days.
TL;DR
- Corporate tax deregistration is due within 3 months of the company ceasing to exist.
- The FTA reviews a completed deregistration application within 40 working days.
- Late corporate tax returns cost AED 500 per month for the first 12 months, then AED 1,000 per month.
- A late deregistration application is penalised by up to AED 10,000.
- Licence, liquidator, audit and visa costs vary by authority — request each fee schedule in writing.
How much does it cost to liquidate a company in the UAE?
The table below separates what the law fixes from what each authority and provider sets. Fixed figures are cited to the governing instrument; the variable lines carry no published federal price, and any provider quoting an all-in figure without seeing your file is estimating.
| Cost or penalty item | Who sets it | Figure in 2026 | Source |
|---|---|---|---|
| Corporate tax deregistration application | Federal Tax Authority | No published application fee | FTA deregistration service page, tax.gov.ae |
| Deregistration deadline | FTA Decision No. 6 of 2023 | Within 3 months of cessation | FTA Decision 6/2023 under Article 52 of Federal Decree-Law No. 47 of 2022 |
| Late deregistration application | Cabinet Decision No. 75 of 2023, as amended | Up to AED 10,000 | Cabinet Decision 75/2023, administrative penalties table |
| Late corporate tax return | Cabinet Decision No. 75 of 2023, as amended | AED 500 per month for the first 12 months, AED 1,000 per month from month 13 | Cabinet Decision 75/2023, administrative penalties table |
| Late corporate tax payment | Cabinet Decision No. 75 of 2023, as amended | 14% per annum, applied monthly on the unpaid amount | Cabinet Decision 75/2023 as amended by later Cabinet Decision |
| Trade licence cancellation | Your free zone or emirate licensing authority | Varies by authority — request the published fee schedule | Free zone or emirate regulator |
| Liquidator and final audit | Appointed liquidator or auditor | Varies with company size and record quality | Market pricing — obtain written quotes |
| Visa and establishment card cancellations | GDRFA / ICP | Varies by permit count | ICP and GDRFA published fees |
Why this matters
Most liquidation overruns are penalty overruns. A company that stops trading but keeps its corporate tax registration accrues filing obligations, and the penalties for unfiled returns and a late deregistration application are fixed by law regardless of whether any tax was payable. The licence authority controls one timeline; the FTA controls another; the two are not coordinated.
The deregistration clock you are actually up against
- Cessation date. The date the company ceases to exist, the business or business activity stops, or liquidation or dissolution begins. This date starts the 3-month clock.
- Within 3 months. File the corporate tax deregistration application on EmaraTax. The 3-month window is set by FTA Decision No. 6 of 2023, applying Article 52 of Federal Decree-Law No. 47 of 2022.
- Documents. The FTA lists the evidence per reason for deregistration: licence cancellation document, financial statements up to the cancellation date, and for a sale or merger the relevant agreement (FTA deregistration service page).
- 40 working days. The FTA's published review window for a completed application. If the FTA requests additional information, you have 60 calendar days to resubmit — otherwise the application can be rejected (same FTA service page).
- Dues first. Deregistration requires corporate tax due and administrative penalties for periods up to cessation to be settled.
What the variable lines actually depend on
- Jurisdiction. Free zone authorities publish their own cancellation fee schedules, which differ materially between zones; mainland cancellations run through the emirate's Department of Economic Development.
- Debts, contracts and assets. Settling liabilities, terminating leases and distributing assets add legal and valuation work that scales with the balance sheet, not with the fee schedule.
- Headcount. Every visa and establishment card must be cancelled, and employment end-of-service dues settled, before authorities clear the file.
- How long the company drifted. Unfiled corporate tax or VAT periods turn the penalty table above into a running meter.
- Your records. Financial statements up to the cancellation date are mandatory FTA evidence — a company with unreconciled books pays for a catch-up audit before anything can be filed.
Penalties that grow while you close
A company that ceased trading but delayed its paperwork is exposed on three independent lines under Cabinet Decision No. 75 of 2023 as amended: AED 500 per month for each late corporate tax return for the first 12 months and AED 1,000 per month thereafter; 14% per annum applied monthly on any unpaid corporate tax; and up to AED 10,000 for a deregistration application filed more than 3 months after cessation. If your company is still VAT-registered, the VAT deregistration has its own 20-business-day window and final return — see how much VAT deregistration costs in the UAE.
Related questions
Can you close a UAE company without a liquidator?
Mainland LLCs liquidate through a formally appointed liquidator under the Commercial Companies Law framework. Free zone routes depend on the zone's own rules — some allow simplified cancellations for dormant companies with no liabilities. Confirm the route with your licensing authority before appointing anyone.
Do you still file a final corporate tax return?
Yes. Corporate tax obligations continue to the date of cessation, and deregistration requires tax dues and penalties for those periods to be settled. The final return covers the short period from the last filed return to cessation.
How long does a liquidation take from start to finish?
No UAE law sets a single end-to-end duration. The FTA commits to 40 working days for the deregistration application itself; the licence cancellation, creditor settlement and visa cancellation timelines are set by the respective authorities and vary by file.
FAQ
How much does the FTA charge to deregister a company for corporate tax?
The FTA publishes no application fee for corporate tax deregistration. The exposure is penalties: up to AED 10,000 for a late application and the late-filing amounts for unfiled periods.
What is the deadline to apply for corporate tax deregistration in the UAE?
Within 3 months of the date the entity ceases to exist or the business or business activity ceases, under FTA Decision No. 6 of 2023.
How long does the FTA take to process a deregistration application?
40 working days from receiving a completed application. If additional information is requested, you have 60 calendar days to resubmit, after which the application can be rejected.
What is the penalty for late corporate tax deregistration?
Administrative penalties under Cabinet Decision No. 75 of 2023 as amended, of up to AED 10,000 for the late application, plus the late-filing penalties for any unfiled periods.
What documents does the FTA require for deregistration?
A licence cancellation document and financial statements up to the licence cancellation date, plus the sale or merger agreement where the reason is a sale, merger or re-domiciliation.
If your closure involves unreconciled books or unfiled periods, closing the record gaps first is what keeps the 40-working-day FTA review from turning into a penalty file — Finanshels' bookkeeping services handles deregistration-ready accounts end to end.
Related guides
- How much does corporate tax filing cost in the UAE
- Corporate tax registration deadlines by licence issue month
- Bookkeeping to EmaraTax: the 2026 VAT filing workflow
Reviewed by Gautam Sanoj, Senior Tax Advisor — last reviewed 11 October 2026. Penalty figures are date-scoped to Cabinet Decision No. 75 of 2023 as amended; confirm current amounts on the FTA portal before filing.
