Liquidating a branch office in the UAE Mainland is a strategic and legally required process that every foreign parent company must complete before exiting the UAE market. Unlike other forms of business closure, branch office liquidation directly involves a wide range of authorities including the Department of Economic Development (DED), Ministry of Human Resources & Emiratisation (MOHRE), General Directorate of Residency and Foreigners Affairs (GDRFA), Municipality departments, banks, landlords, and the Federal Tax Authority (FTA).
Many multinational companies initially set up a UAE branch to test market potential or run operations controlled directly by the parent company. Over time, operational restructuring, regional expansion, cost optimization, or corporate mergers may require closing the branch. However, simply ceasing operations is not enough. The UAE requires all entities to formally deregister, cancel licenses, settle tax obligations, close bank accounts, cancel visas, and clear liabilities.
Failure to liquidate the branch properly can lead to:
- Accumulated license renewal fines
- Immigration penalties
- MOHRE violations
- VAT deregistration delays
- FTA audits
- Restrictions on future business formation
This is why organizations rely on professional corporate advisors like Nines Consultancy. As experts in Mainland Company Liquidation, PRO Services in UAE, VAT Deregistration UAE, and Business Setup in UAE, Nines Consultancy handles the full liquidation process end-to-end, ensuring complete compliance across all Emirates, including Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, and Fujairah.
What is Branch Office Liquidation in UAE Mainland?
A branch office in the UAE Mainland is an extension of a foreign parent company. It does not have its own legal identity and operates under full liability of the head office. Because of this, liquidation is not the same as closing an LLC or Civil Company.
Branch office liquidation involves:
- Cancelling the DED trade license
- Deregistering from labour and immigration systems
- VAT deregistration with FTA
- Settling all government and third party liabilities
- Completing legal processes with notarized and attested documents
- Appointing and submitting reports through a certified liquidator
For companies exploring other liquidation formats, visit:
- LLC Company Liquidation UAE
- Civil Company Liquidation
- Free Zone Liquidation UAE
- Offshore Company Liquidation UAE
Why Branch Office Liquidation Matters in the UAE
The UAE’s regulatory framework ensures that every entity is accountable for taxes, employment liabilities, tenancy contracts, municipal dues, and legal commitments. A branch office that stops operations without liquidating can still accumulate fines and penalties because, under UAE law, the license remains active until it is formally cancelled.
Why proper liquidation is crucial:
1. DED license fines
The DED can charge penalties for each year the license remains expired or inactive.
2. Immigration and labour penalties
Uncancelled establishment cards, active labour files, and unclosed visas may trigger violations.
3. VAT non compliance
FTA requires formal VAT deregistration. Failure to do so can lead to audits and fines.
4. Banking issues
Corporate bank accounts that remain open during non-operational periods raise compliance risks.
5. Future business restrictions
Companies planning to re enter the UAE market may not be allowed to open a new license if their previous entity was not liquidated properly.
For businesses transitioning or restructuring, explore our other services:
Step by Step Process for Branch Office Liquidation in UAE Mainland
Below is the complete, detailed liquidation process used across all Emirates, with slight procedural differences depending on the jurisdiction.
Step 1: Board Resolution from Parent Company
The liquidation must be approved by the parent company abroad. The resolution must be:
- Notarized in the home country
- Attested by the UAE Embassy
- Legalized by UAE Ministry of Foreign Affairs
- Translated to Arabic (if applicable)
This resolution gives legal authority to the liquidator or Nines Consultancy to act on behalf of the parent company.
Step 2: Application for Initial Approval with DED
The DED (Dubai DED, ADDED, Sharjah DED, etc.) reviews the liquidation request.
Required submissions include:
- Attested Board Resolution
- Trade License Copy
- Passport of Manager
- Parent Company Registration Documents
- Ejari / Tenancy Contract
After approval, DED issues the initial liquidation certificate.
Step 3: Appointment of a Certified Liquidator
Most Emirates legally require a licensed liquidator to prepare liquidation reports.
The liquidator must be:
- A certified audit firm
- A licensed legal/consulting entity
- Approved by DED
They will prepare:
- Initial Liquidator Report
- Final Liquidator Report
- Statement of accounts
Step 4: Newspaper Advertisement and Objection Period
DED requires a mandatory public announcement to notify creditors. The notice must be:
- Published in Arabic and English
- Printed in two approved UAE newspapers
- Displayed for a 30 day objection period
Creditors can raise any financial claims during this time.
Step 5: Labour, MOHRE, and Immigration Clearance
Before liquidation can proceed, all employee records must be cleared.
Nines Consultancy handles:
- Visa cancellations
- Labour card cancellations
- Establishment card cancellation
- MOHRE file closure
- GDRFA clearance
Step 6: Settlement of Liabilities & Contractual Obligations
You must settle and close:
- Utility bills (DEWA, SEWA, FEWA, ADDC)
- Etisalat/Du subscriptions
- EJARI cancellation
- Municipality approvals
- Supplier payments
- Corporate banking liabilities
- Lease termination with landlord
- Employee end of service payments
Many companies overlook bank obligations, which delays liquidation.
Step 7: VAT Deregistration with the Federal Tax Authority (FTA)
VAT deregistration must be completed before closing the trade license.
FTA requires:
- Final VAT return
- Payment of outstanding VAT
- Financial statements
- Reason for deregistration
- Bank statements
- Clearance confirmations
Without FTA approval, DED will not issue the final liquidation certificate.
Step 8: Final Liquidator Report
After the 30-day notice period ends and liabilities are settled, the liquidator prepares the final report, including:
- Confirmation that liabilities are cleared
- Confirmation that no objections remained
- Final financial summary
- Audit note (if required)
This document must be submitted directly to DED.
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Step 9: Final License Cancellation Certificate
Once all requirements are completed, the DED issues the official cancellation certificate. This confirms that the branch office is no longer legally active in the UAE.
Documents Required for Branch Office Liquidation
Below is the full list of documentation needed:
- Attested Board Resolution
- Trade License Copy
- MOA / Parent Company Documents
- Audit Reports (if needed)
- Passport copies of Manager & Representative
- Initial and Final Liquidator Reports
- Newspaper Advertisement Copies
- VAT Deregistration Certificate (if applicable)
- Office Ejari Cancellation
- Municipality Clearances
- Labour & Immigration Clearances
- Bank Account Closure Letter
Timeline for Branch Office Liquidation in UAE Mainland
A typical liquidation timeline with Nines Consultancy:
- Document Preparation: 3 to 5 days
- DED Initial Approval: 1 to 3 days
- Liquidator Appointment & Initial Report: 3 to 7 days
- Newspaper Objection Period: 30 days
- VAT Deregistration: 20 to 30 days
- Final Liquidator Report: 5 to 10 days
- Final DED Cancellation: 3 to 7 days
Total Estimated Time: 45 to 60 days
Cost of Branch Office Liquidation in UAE
Costs vary depending on:
- Emirate
- Liquidator fees
- DED charges
- Newspaper ad fees
- VAT obligations
- Outstanding fines
- Labour & immigration clearances
Since each branch office is structured differently, we encourage companies to request a customized quotation.
Click to speak with our consultants: +971 52 975 7543
Call: +971529757543
Benefits of Professional Liquidation with Nines Consultancy
- 100 percent compliance with UAE laws
- Faster liquidation
- No approval delays
- Full PRO support
- Avoidance of fines
- Smooth coordination with all authorities
- Transparent communication
- Guidance for future restructuring or re-entry into the UAE market
Nines Consultancy is a trusted UAE firm specializing in:
• Mainland Liquidation
• Free Zone Liquidation
• Offshore Liquidation
• VAT Deregistration
• Corporate PRO Services
• Business Setup UAE
• ISO Certification Consultancy
Branch office liquidation is a structured and mandatory process in the UAE. With Nines Consultancy, you can ensure a fast, compliant, and stress-free closure handled fully by experts who understand the UAE’s legal, tax, and regulatory requirements.
For personalized guidance, contact us today:
WhatsApp  Or Call: +971 52 975 7543
