Closing a Sole Establishment in the UAE Mainland is usually simpler and faster than liquidating an LLC or Civil Company. Since a Sole Establishment has only one owner and no shared liability structure, the liquidation process requires fewer documents, no liquidator report, and no newspaper advertisement.

However, even though the process is lighter, the UAE still requires compliance with DED, MOHRE, Immigration, FTA (if VAT registered), banks, utilities, and tenancy clearances before the license can be cancelled.

This guide explains everything you need to know about Sole Establishment liquidation in the UAE Mainland, including the exact steps, required documents, timelines, and how Nines Consultancy ensures a smooth and compliant closure from start to finish.

A Sole Establishment is a business owned 100 percent by one individual. Unlike LLCs, it does not have shareholders, partners, or limited liability. This makes liquidation faster because:

• No liquidator is required
• No liquidation report is required
• No newspaper announcement is required
• No partner resolutions are needed

However, the business must still complete all government clearances before DED cancels the license.

For LLC liquidation, visit Our LLC Liquidation in UAE page.

Even though the structure is simple, failing to close the Sole Establishment properly may result in:

• Accumulated license fees
• Labour and immigration fines
• VAT penalties
• Banking complications
• Difficulty opening new licenses
• Legal issues if any disputes exist

The UAE requires businesses to follow proper closure procedures to keep government records accurate and transparent.

Step 1: Apply for Initial DED Cancellation

Submit the request to the Department of Economic Development (DED) to open the cancellation file.

Step 2: Cancel All Employee Visas (If Any)

If your Sole Establishment has employees, you must:

• Cancel work permits
• Cancel employee visas
• Pay end of service benefits
• Clear MOHRE records
• Cancel the establishment card

If you have no employees, this step is skipped. You can use our PRO Services in UAE to complete this step without any hassle.

Step 3: Cancel Owner’s Investor/Owner Visa (If Applicable)

If the owner is on the same trade license (common in professional activities), the investor visa may need to be:

• Cancelled, or
• Transferred to another visa

We assist with the best option for your residency status.

Step 4: VAT Deregistration (If Registered)

If your Sole Establishment is VAT registered, you must submit:

• VAT deregistration request
• Final VAT return
• Clearance of penalties (if any)

For VAT services, explore our VAT Consultancy page

Step 5: Close Bank Accounts, Utilities, and Contracts

Obtain closure/NOC letters from:

• Bank (corporate account)
• Telecommunications (Etisalat / Du)
• DEWA / ADDC / SEWA
• Ejari (or tenancy system)
• Supplier or landlord (if applicable)

These are mandatory for final cancellation.

Step 6: Submit Final DED Cancellation Request

Once all clearances are completed, submit:

• All NOCs
• Visa cancellation records
• FTA deregistration (if applicable)

DED will then issue the official License Cancellation Certificate.

Your Sole Establishment is now legally closed.

• Owner’s passport copy
• Emirates ID copy
• Trade license
• Establishment card
• Employee visa cancellation records (if any)
• Bank account closure letter
• Tenancy clearance
• Utility clearance
• VAT deregistration confirmation (if applicable)

Sole Establishment liquidation is the fastest among all mainland structures.

Typical timeline:

• DED initial cancellation: 1 to 2 days
• MOHRE clearances: 1 to 3 days
• Immigration clearances: 1 to 2 days
• VAT deregistration (if applicable): 20 to 45 days
• Final cancellation: 1 to 2 days

Overall: 3 to 7 days without VAT
Or 20 to 45 days with VAT deregistration.

We do not display exact costs publicly to ensure clients contact us directly.

Costs depend on:

• DED cancellation fees
• Labour and immigration clearances
• VAT deregistration requirements
• Bank closure
• PRO assistance

For accurate pricing, clients should contact us directly.

Nines Consultancy offers a smooth, fast, and fully compliant liquidation experience for Sole Establishments in the UAE Mainland.

What You Get:

• Complete cancellation handling
• MOHRE & immigration clearance
• VAT deregistration support
• Preparation of all documents
• Bank & tenancy closure assistance
• Compliance with all UAE authorities
• Transparent process
• WhatsApp based updates

f you are planning to liquidate your Sole Establishment in the UAE Mainland, we can manage the entire process for you from start to finish.

Chat with a Specialist on WhatsApp +971 52 975 7543

Or Call Us +971 52 975 7543