A Guide to the Free Zone Company Liquidation
Closing a free zone company in UAE? Learn the step-by-step company liquidation process in Dubai, DIFC, ADGM & Meydan. Ensure compliance & avoid penalties.
Everyone fears the word “liquidation”, especially in the UAE’s free zones. But what if we told you that by comparing ADGM, DIFC, and Meydan, you could stop stressing and start planning smart? The 2025 updates have shifted the scene quite a bit.
Let’s walk through how each zone handles liquidation now, including a fresh twist no one else mentions, how their real estate tie-ins impact timing and costs.
UAE Free Zone License Cancellation Process
Each free zone has its own legal backbone and process. Understanding these differences helps you:
- Avoid unnecessary delays or surprises
- Estimate realistic timelines and costs.
- Potentially save on fees tied to their real estate and service bundles
ADGM Liquidation Process (As of 2025)
- Prepare documents for the ADGM Registrar: board resolution, liquidation notice, and audited accounts.
- Appoint a licensed liquidator, typically with ADGM affiliation.
- Notify creditors and allow a 21-day claim period.
- File final audit and liquidation report.
- Receive Certificate of Dissolution once all is clear.
What’s new in 2025:
- The Al Reem Island expansion has boosted cost-effective office package offerings. Many companies that are liquidating now surrender part of their leased space earlier to cut costs, something few competitors highlight.
- ADGM Courts continue to apply English common law directly via the Application of English Law Regulations 2015, making dispute resolution predictable.
DIFC Liquidation Process (As of 2025)
- Pass board resolution and shareholder consent.
- Submit an application for voluntary winding up to the DIFC Registrar, along with financial audit report.
- Advertise the intention to liquidate publicly for at least one week.
- Liquidator appointed, typically from a DIFC-licensed firm.
- Notification to creditors with a 30-day response window.
- Submit final statements, cancel licenses, and get the DIFC Certificate of Dissolution.
What’s unique in 2025:
- DIFC’s record growth (7,700 active companies by mid-2025) has made the system busier, so expect regulator delays of 2–3 weeks more than a year ago.
- Also, some firms with DIFC Funds Centre licenses can fast-track liquidation because they already meet stricter audit standards.
Meydan Free Zone Liquidation (As of 2025)
- Submit the board resolution and liquidation application to the Meydan Registrar.
- Appoint a liquidator and submit liquidation report.
- Notify creditors – usually with a 14-day window.
- Finally, file final reports and obtain the Certificate of Dissolution.
Unique twist for 2025:
It is now mandatory to submit a Corporate Tax Registration Certificate in order to complete the company liquidation process in Meydan Free Zone.
The Federal Tax Authority (FTA) has made it compulsory for all businesses undergoing liquidation to provide proof of corporate tax registration, even if they have not conducted any business activities or generated revenue.
This new requirement ensures that all companies, including those closing down, are compliant with UAE corporate tax laws. Businesses that were previously unregistered can no longer avoid registration during liquidation. They must first complete their corporate tax registration with the FTA and obtain the certificate before proceeding with the closure of the company.
For companies planning liquidation, it is advisable to initiate corporate tax registration immediately to avoid delays, penalties, or rejection of the liquidation application.
Liquidation Comparison between Free Zones in UAE
Free Zone | Steps to Liquidate | Notice to Creditors | Legal Basis | 2025 Unique Twist |
ADGM | Registrar docs → Liquidator → Notices → Final audit → Certificate | 21 days | Direct English common law | Al Reem real estate tie-ins help with cost savings |
DIFC | Board/Rez → Notice → Liquidator → Audit → Certificate | 30 days | DIFC’s own laws + cascade English | Backlog from record growth; funds-centre fast-track |
Meydan | Registrar docs → Liquidator → Notice → Reports → Certificate | 14 days | Local Dubai rules | GTA real estate hand-back coordination |
Tips to Avoid Liquidation Headaches
- Ensure to register under corporate tax
- Communicate early with your chosen liquidator, each free zone now has volume-linked delays.
- Keep records tidy so your audit at the end goes smoothly, especially in DIFC and ADGM.
- Cancel all the visas and establishment card
- Clear all the liabilities such as DEWA, Etisalat, Rent etc
- Ask about fast-track options if you’re under-funded licenses in DIFC or property-linked packages in Meydan.
Best Company Liquidators in UAE
Liquidation doesn’t have to feel like a mystery or a trap. Knowing how ADGM, DIFC, and Meydan differ, especially with 2025’s real estate tie-ins and workload shifts, can save you weeks and thousands in costs.
Need help reviewing your exit strategy? We can guide you: quick, clear, and in tune with what’s happening right now.
Ready to Simplify Your Liquidation?
Don’t let the process drag on longer than it should. Our team at Xact Auditing understands the ADGM, DIFC, and Meydan liquidation rules in 2025 inside out. Reach out today, and we’ll guide you step-by-step, saving you both time and money.