Liquidating a Branch Office in the UAE Mainland is a structured legal process that involves coordination with several authorities including the Department of Economic Development (DED), MOHRE, Immigration, Federal Tax Authority (FTA), banks, and in some cases, the Ministry of Economy (MoE). Unlike LLCs, a Branch Office does not have its own legal identity separate from the parent company, which means the parent entity carries full liability and responsibility.
Whether your branch is being closed due to restructuring, financial adjustments, market strategy changes, or relocation, completing the liquidation in a compliant and systematic way prevents penalties, legal issues, and future restrictions for the parent company. This guide explains all steps, requirements, and how Nines Consultancy manages the full process smoothly and professionally.

A Branch Office is an extension of a parent company, either local or foreign, and operates under the parent company’s legal umbrella. When liquidating a branch, you are not closing a full company but withdrawing its operating license and deregistering it from UAE authorities.

Branch liquidation includes:

• Cancelling commercial activities
• Closing employee visas
• Clearing labour & immigration records
• Cancelling branch bank accounts
• Settling all liabilities
• VAT deregistration (if registered)
• Cancelling trade license at DED
• Informing or coordinating with the parent company
• Ending sponsorship contracts (if any)

Branch liquidation must be completed carefully to avoid any liability being transferred back to the parent company.

If a branch is inactive or non operational but not legally closed, the parent company may face:

• Accumulated license renewal fees
• VAT penalties
• Labour fines
• Legal exposure
• Difficulty opening future licenses in UAE
• Bank compliance issues
• Immigration blocks

Proper liquidation ensures the branch is fully removed from UAE systems and all liabilities are cleared.

For other liquidation types, visit: our Company Liquidation service page

Step 1: Parent Company Resolution

The parent company must issue a board resolution approving the closure of the UAE branch.
This resolution must be notarized and attested (UAE Embassy + MOFA if issued abroad).

Step 2: Initial DED Application for Branch Closure

Submit the closure request with DED to initiate the liquidation file.
DED reviews:

• Parent company documents
• Branch license details
• Any outstanding penalties

Step 3: Cancel Employee Work Permits & Visas (MOHRE + Immigration)

If the branch employs staff, the following must be completed:

• Cancel all employee visas
• Process end of service settlements
• Cancel labour contracts
• Resolve labour disputes (if any)
• Cancel establishment card

Staff related clearances must be completed before the final approval.

Step 4: Local Service Agent Contract Cancellation (If Applicable)

Some foreign branch offices operate under a Local Service Agent (LSA).
The LSA contract must be formally cancelled before final closure.

Step 5: VAT Deregistration (If VAT Registered)

If the branch was VAT registered:

• Submit VAT deregistration request
• File any outstanding VAT returns
• Clear VAT penalties
• Submit required supporting documents

You can get our top notch VAT Consultancy Services at this step.

Step 6: Bank Account Closure & Financial Settlements

The corporate bank account under the branch must be:

• Settled
• Closed
• Issued with an official “Bank Account Closure Letter”

This is mandatory for DED final cancellation.

Step 7: Tenancy & Utilities Clearance

Obtain clearance from:

• Landlord (Ejari cancellation or tenancy NOC)
• DEWA / ADDC / SEWA
• Etisalat / Du
• Municipality (if applicable)

Each clearance is required to complete the final step.

Step 8: Final DED Branch License Cancellation

Once all clearances are completed, submit:

• Parent company resolution
• LSA cancellation (if any)
• Employee visa cancellations
• VAT deregistration confirmation
• Bank closure letter
• Tenancy & utility NOCs

DED then issues the Branch Closure Certificate, officially cancelling the branch.

• Parent company board resolution
• Trade license copy
• Parent company license (if local)
• Attested parent company legal documents (if foreign)
• Emirates ID & passports of authorized signatories
• Power of Attorney (if applicable)
• Establishment card
• Employee visas & labour clearance records
• LSA cancellation contract (if applicable)
• Bank account closure letter
• Tenancy clearance
• Utility clearance
• VAT deregistration confirmation (if registered)

Typical timeline varies depending on approvals:

DED initial approval: 2 to 5 days
MOHRE & Immigration clearance: 2 to 7 days
Bank closure: 3 to 10 days
VAT deregistration (if applicable): 20 to 45 days
Tenancy & utility clearance: 2 to 5 days
Final DED cancellation: 3 to 7 days

Average timeline:
10 to 25 days for non VAT cases
30 to 60 days with VAT deregistration

Costs vary depending on:

• DED fees
• VAT deregistration
• Labour & immigration fines
• LSA cancellation
• Bank compliance requirements
• PRO services

Clients must contact us for accurate up to date pricing based on the actual branch structure.

Nines Consultancy provides end to end Branch Office liquidation support with full compliance, ensuring a smooth and timely closure.

You Get:

• Complete document preparation
• Parent company resolution drafting
• Labour & immigration clearance
• LSA contract cancellation
• VAT deregistration support
• Bank account closure assistance
• Dedicated PRO handling
• WhatsApp updates throughout the process

Nines ensures your parent company remains fully protected from any future liability.

Close your Branch Office quickly and professionally with Nines Consultancy.
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