Closing a company in Dubai involves more than cancelling its trade licence. Business owners may need to settle outstanding bills, cancel employee and investor visas, terminate tenancy agreements, clear government obligations, and complete company liquidation or deregistration procedures.
Understanding the trade license cancellation cost in Dubai can help you plan your exit and identify which deposits may be refundable. While some amounts, such as eligible tenancy security deposits and certain utility deposits, may be returned after final settlement, government cancellation fees and professional service charges are generally not refundable simply because a business closes.
The exact cost depends on whether your company operates on the mainland or in a free zone, its legal structure, outstanding liabilities, and the requirements of the relevant authority.
How Much Does Trade Licence Cancellation Cost in Dubai?
There is no single cancellation fee for every Dubai business. The applicable charges depend on the company type and the procedures required to close it properly.
For Dubai mainland companies, the official licensing service lists a trade licence cancellation fee of AED 1,020 and a company dissolution fee of AED 2,520 for the relevant service. These charges apply to the published cancellation process and should not be treated as a universal total for every business closure.
For companies registered in free zones, fees vary by authority. For example, the Dubai Development Authority lists an FZ-LLC deregistration fee of AED 1,500, with additional Knowledge Dirham and Innovation Dirham charges. Its published fee for eligible In5 companies is AED 1,000, before the applicable additional charges.
You may also need to pay for a liquidator, visa cancellations, document preparation, tenancy settlement, and other outstanding obligations. Always request a company-specific cancellation quotation before proceeding.
What Costs Are Involved in Cancelling a Dubai Trade Licence?
1. Government Cancellation and Deregistration Fees
The main cancellation fee covers the relevant licensing authority’s administrative process. If your company must undergo formal liquidation, separate dissolution-related charges may apply.
These payments are generally not refundable once the relevant service has been provided. Closing a company does not automatically entitle you to recover the original trade licence fee or previous annual renewal payments.
2. Liquidator and Professional Service Fees
Certain mainland company structures require a formal liquidation process and the appointment of an eligible liquidator.
The professional fees depend on the complexity of the company’s affairs, financial records, outstanding liabilities, and reporting requirements.
If you appoint a business setup consultancy or PRO service provider to coordinate the closure, its service fee may also be charged separately. Check the engagement agreement to understand which services are included and whether any unused services are refundable.
3. Employee and Investor Visa Cancellation
If your company sponsors employees or investors, their immigration arrangements may need to be cancelled as part of the closure process.
The total cost depends on the number of visas, the applicable immigration procedures, and any outstanding employment or immigration obligations. Visa cancellation charges and other processing expenses are generally not refundable after the service has been completed.
Before cancelling the company, confirm the required sequence for employee-related formalities, outstanding salary and benefit obligations, and immigration clearances.
4. Tenancy and Office Closure Expenses
Businesses with physical offices, shops, or warehouses may have additional costs when ending a lease.
These can include unpaid rent, early termination charges, outstanding utility bills, restoration work, or other contractual expenses. Your tenancy agreement determines what you must pay and the conditions under which the landlord must return any security deposit.
A company using a free zone’s shared workspace may have different closure requirements from a business renting an independent office.
Which Deposits Can You Get Back After Cancelling a Trade Licence?
Not every payment made during company formation is refundable. The key is to distinguish between a refundable security deposit and a fee paid for a service that has already been provided.
1. Office Rental Security Deposit
Your office security deposit may be refundable when you terminate the tenancy agreement, provided you have met the relevant contractual conditions.
The landlord may deduct unpaid rent, outstanding charges, or the reasonable cost of repairing damage covered by the agreement. The remaining eligible amount may then be returned.
For example, if you paid a security deposit when renting a Dubai office, you should check the lease termination procedure, arrange a final inspection, settle outstanding bills, and obtain written confirmation of the refund amount.
The deposit is not automatically refundable merely because the trade licence has been cancelled. The tenancy agreement and applicable rental rules determine the outcome.
2. Utility Deposits
Deposits paid to utility providers may be refundable after the service is disconnected and the final account is settled.
The provider may deduct any outstanding balance before returning the eligible amount. The exact procedure and timeline depend on the provider’s terms.
Submit the required disconnection request, provide any requested account details, and retain the final bill and refund confirmation.
3. Free Zone Facility or Service Deposits
Some free zones or facility providers may collect security deposits connected with offices, access cards, facilities, or other arrangements.
Whether these amounts are refundable depends on the specific agreement and the authority’s rules. Outstanding charges, unreturned property, or other contractual liabilities may affect the final amount.
Ask the free zone authority for a written settlement statement showing which deposits can be returned and which deductions are being applied.
4. Immigration or Other Security Deposits
A business may have paid a refundable deposit associated with a particular immigration, employment, or regulatory arrangement. Whether that deposit can be recovered depends on the scheme under which it was paid.
Do not confuse a refundable security deposit with a visa fee or processing charge. A payment for a completed service is generally treated differently from an amount held as security.
Check the relevant authority’s requirements and confirm that all conditions for release of the deposit have been satisfied.
Which Fees Are Usually Non-Refundable?
Government processing fees, completed visa services, licence cancellation charges, liquidation service fees, and professional fees are generally not refundable simply because the business has closed.
Similarly, an annual trade licence fee already paid for a previous licensing period should not be assumed to be refundable because the company stops trading before that period ends.
Some authorities may have specific credit, refund, or cancellation policies. If you have prepaid fees for a service that was not delivered, ask the relevant authority or provider to explain whether a refund or credit is available.
Always request a breakdown separating non-refundable fees from refundable deposits.
How to Cancel a Trade Licence in Dubai
Step 1: Check Your Company Structure
Identify whether your business is a mainland establishment, a mainland company requiring liquidation, or a free zone entity. The cancellation process differs according to the structure and licensing authority.
Step 2: Settle Outstanding Obligations
Review your company’s rent, utility accounts, employee obligations, supplier payments, loans, and other liabilities.
Resolve outstanding matters before completing the closure wherever required. Unsettled obligations can delay cancellation or reduce the amount of money returned to the business.
Step 3: Complete Visa and Immigration Formalities
Determine which employee, investor, or dependent immigration arrangements need to be cancelled or transferred.
Follow the required sequence and retain confirmations for the relevant records.
Step 4: Complete Liquidation or Deregistration
Depending on the company type, you may need a shareholder or partner resolution, a liquidator’s appointment and report, a public liquidation notice, or additional authority clearances.
Free zone companies must follow their own authority’s deregistration process.
Step 5: Cancel the Licence and Request Eligible Refunds
Submit the required cancellation application and settle the applicable charges. Then contact the relevant landlord, utility provider, free zone authority, or other organisation to claim any eligible security deposits.
Keep the final cancellation certificate and payment receipts for your records.
Step 6: Review Corporate Tax Obligations
Cancelling the trade licence does not automatically complete Corporate Tax deregistration.
If your company is registered for UAE Corporate Tax, check whether you must submit a separate deregistration application and final tax return. The Federal Tax Authority’s requirements and applicable deadlines should be reviewed as part of the closure process.
Common Mistakes to Avoid When Closing a Company
One common mistake is assuming that cancelling the licence automatically closes every associated account. Tenancy, utilities, visas, tax registration, and other obligations may require separate action.
Another is expecting every deposit and fee to be returned. Government fees and completed professional services are generally not refundable, while eligible security deposits may be recovered after settlement.
Businesses should also avoid cancelling too late without reviewing possible renewal obligations and outstanding penalties.
Before submitting the application, request a written closure checklist and cost breakdown. This will help you identify the required procedures, estimate the total expense, and avoid overlooking refundable deposits.
How Takween Advisory Can Help
Closing a business in Dubai requires careful coordination of licence cancellation, company deregistration, outstanding documentation, and related compliance matters.
Takween Advisory supports business owners exploring company formation and business advisory services in Dubai and across the UAE. Business owners preparing to close a company should confirm the cancellation procedure, outstanding charges, and refund conditions relevant to their specific structure.
For complex liquidation, employment, or tax matters, seek advice from appropriately qualified professionals.
Frequently Asked Questions
1. What is the trade licence cancellation cost in Dubai?
The cost depends on the company structure and authority. The published mainland service lists AED 1,020 for licence cancellation and AED 2,520 for company dissolution under the relevant process. Additional costs may apply for liquidation, visas, professional services, and outstanding liabilities.
2. Can I get my original trade licence fee refunded?
You should not assume so. Licence and renewal fees already paid are generally not refundable simply because the company closes. Any exceptional refund or credit depends on the applicable authority’s policy.
3. Is my office security deposit refundable?
It may be refundable if the tenancy agreement’s conditions are met and outstanding liabilities are settled. The landlord may deduct eligible amounts for unpaid rent, bills, or contractual damage.
4. Can I recover my utility deposit?
Eligible utility deposits may be refunded after disconnection and settlement of the final account. The provider’s terms determine the amount and procedure.
5. Does free zone company cancellation cost the same as mainland cancellation?
No. Each free zone authority has its own fees and deregistration requirements. Obtain a quotation directly from your authority and check whether additional professional or liquidation charges apply.
6. Do I need to cancel Corporate Tax registration separately?
If your company is registered for Corporate Tax, you should review the FTA’s separate deregistration requirements. Trade licence cancellation alone does not automatically complete tax deregistration.
Conclusion
The trade license cancellation cost in Dubai depends on your company structure, licensing authority, outstanding obligations, and the services needed to close the business.
Although some security deposits, such as eligible office rental and utility deposits, may be refundable, government cancellation fees and completed service charges are generally not. The amount returned depends on the relevant contract, authority rules, and any outstanding deductions.
Before closing your company, review the full cancellation process, obtain a written cost breakdown, settle outstanding liabilities, and submit refund requests for eligible deposits. Careful planning can help you close the business in an orderly way and recover the amounts you are entitled to receive.