Yes, you can close your UAE company while staying in India. You don’t need to travel back to the UAE to complete the process. However, the closure requires official approvals, visa cancellations, tax deregistration, and settlement of bank or utility accounts. To handle these steps locally, you can either issue a Power of Attorney (POA) or appoint a licensed liquidator, audit firm, or corporate service provider to act on your behalf.
Closing a UAE Company from India – How it Works?
UAE authorities allow owners to close companies remotely by appointing an authorised representative (via an attested Power of Attorney) or a licensed liquidator. A properly worded and fully attested POA will usually let your representative handle government formalities, bank clearances, and many free-zone or mainland processes.
- Power of Attorney (POA): Can be issued to a trusted friend, lawyer, or service provider. The process involves notarisation in India, attestation by the Ministry of External Affairs (MEA), UAE Embassy, and finally the UAE Ministry of Foreign Affairs (MOFA).
- Licensed professionals: Liquidators, audit firms, or service providers can handle the closure.
- Free Zones: Many free zones such as DMCC, Meydan, and IFZA allow most of the process to be completed online, making it easier for business owners abroad.
Step-by-Step Guide to Closing a UAE Company from India
Step 1: Choose the Right Closure Method
- Voluntary liquidation: if the company has assets/liabilities but can clear them.
- Strike-off: if the company had no activity or liabilities.
- Insolvency/bankruptcy: if the company cannot pay debts (handled through UAE courts).
Step 2: Shareholder Resolution & Appoint Liquidator
- Shareholders must approve the decision to close.
- A shareholder resolution (meeting minutes) is required.
- A licensed liquidator (audit or law firm) must be appointed for liquidation cases.
Step 3: Power of Attorney from India
- Notarize the POA in India.
- Attest it through MEA → UAE Embassy → UAE MOFA.
- This POA allows your representative to manage paperwork, banking, visa cancellations, and final submission.
Step 4: Cancel Employees & Visas
- Cancel all employee contracts and residence visas through MOHRE and ICP/GDRFA.
- Even the owner’s residence visa linked to the company must be cancelled before licence termination.
Step 5: Tax Deregistration
- VAT: Apply for deregistration via the FTA portal. Submit documents such as the liquidation letter, cancelled licence, and final financials.
- Corporate Tax: File the final corporate tax return and apply for deregistration through the EmaraTax corporate tax service; deregistration normally requires settlement of all corporate tax liabilities and supporting documentation
Step 6: Bank, Lease & Utilities
- Close the business bank account (a POA is often required).
- Cancel the lease (Ejari for mainland) and obtain clearance from utilities such as DEWA, Etisalat, or Du.
- Some authorities require these clearances before final licence cancellation.
Step 7: Public Notice & Submission
- In mainland UAE, publish a liquidation notice in an Arabic newspaper (usually 45 days).
- Some free zones have shorter notice periods.
- After the notice period, submit the liquidation documents to the authority.
Step 8: Get the Final Cancellation Certificate
- The relevant authority (DED for mainland or free zone authority) issues the official cancellation certificate.
- Keep this document safe, as banks, tax authorities, or future business registrations may request it.
Documents Required for Closing a UAE Company from India
- Notarised shareholder resolution (Arabic translation may be required).
- Power of Attorney (original + attested copy).
- Trade licence and incorporation documents (MOA/AOA).
- Final audited financial statements or trial balance.
- Bank NOC or final bank statement showing zero balance.
- MOHRE cancellation forms and confirmations.
- Lease cancellation and utility clearance certificates.
How Long Does it Take?
- Free zone companies: 4–8 weeks.
- Mainland companies: 2–4 months.
- Complex cases (unsettled liabilities, employee disputes, or slow bank clearances) can extend timelines significantly
Costs
The overall cost depends on government fees, liquidator fees, newspaper ads, POA attestation, and bank closure charges.
What Happens If You Don’t Close the Company Properly?
- Accumulated fines for trade licence non-renewal.
- Uncancelled visas may block immigration applications.
- Penalties for missed VAT or corporate tax filings.
- Risk of blacklisting for owners and shareholders.
Common Challenges NRIs Face (and Solutions)
- POA not accepted by banks/utilities: Ensure it includes banking powers and is fully attested.
- Unpaid VAT or corporate tax filings: Submit final returns on time to avoid penalties.
- Employee disputes: Resolve through MOHRE to prevent delays in cancellation.
Close Your UAE Company Smoothly from India
Shutting down a UAE company while living abroad is absolutely possible. With the right planning, attested POA, and professional guidance, the process can be completed without complications. Partnering with experts ensures compliance with UAE authorities and avoids unnecessary delays.
At Reyson Badger, we assist business owners across the UAE with company liquidation, tax deregistration, and licence cancellation. Our experienced team ensures that every step is handled efficiently, whether you are in the UAE or abroad.
