Civil Company liquidation in the UAE Mainland applies to professional firms formed by two or more partners under a professional license. This includes consultancy firms, engineering offices, clinics, auditing companies, training institutes, media agencies, and various other professional practices.

Although Civil Companies operate differently from LLCs mainly due to the absence of shared limited liability, the liquidation process is still regulated by the Department of Economic Development (DED), MOHRE, Immigration, and sometimes professional regulatory bodies. Some Civil Companies may also require a liquidator depending on the business activity, number of partners, and financial liabilities.

This comprehensive guide explains how to liquidate a Civil Company in UAE Mainland step by step, including required documents, timelines, partner obligations, VAT deregistration rules, and how Nines Consultancy manages the entire process efficiently.

A Civil Company is a partnership formed by two or more professionals who share profits, responsibilities, and liabilities. Liquidation involves:

• Closing operations
• Clearing employee and partner liabilities
• Settling professional contracts
• Cancelling labour and immigration records
• Completing VAT deregistration (if applicable)
• Closing bank accounts
• Cancelling tenancy and utilities
• Obtaining official license cancellation from DED

While not as complicated as an LLC liquidation, Civil Company liquidation is more complex than Sole Establishment closure because multiple partners are involved.

Civil Companies often deal with:

• Professional advisory services
• Client contracts
• Licensed activities
• Regulatory obligations

Improper closure can lead to:

• Partner disputes
• Unsettled client claims
• VAT penalties
• Labour fines
• DED license renewal penalties
• Negative record in immigration systems

To avoid legal complications, the UAE requires full compliance with all government departments before the license is cancelled.

A liquidator may be required when:

• The company has multiple partners
• There are unsettled liabilities
• There are outstanding client contracts
• A partner disagrees or is unavailable
• Authorities demand liquidation reports
• The activity requires professional clearance (auditing, engineering, medical, training, etc.)

Sole partners or low liability firms may be exempt from liquidator involvement.

Step 1: Partner Resolution to Liquidate

All partners must sign a resolution approving the liquidation. Nines Consultancy drafts this document.

Step 2: Initial Approval from DED

DED opens the cancellation file and confirms whether a liquidator is required.

Step 3: Liquidator Appointment (If Required)

A licensed liquidator issues an appointment letter.

Not required for all Civil Companies but often needed in multi partner firms.

Step 4: Initial Liquidation Report (If Applicable)

The liquidator prepares an initial report summarizing company status, liabilities, and obligations.

Step 5: Newspaper Advertisement (If Required)

Some Civil Companies must publish a 30 to 45 day creditor announcement, similar to LLCs.
Others are exempt, depending on activity and liability.

Step 6: Employee Visa Cancellation

All employee visas must be cancelled through MOHRE and Immigration.

This includes:

• Work permit cancellation
• Labour contract cancellation
• End of service settlement
• Establishment card cancellation

Step 7: Partner Visa Clearance

If partners hold visas under the Civil Company license, these visas must be:

• Cancelled, or
• Transferred to another visa

We assist in planning the best residency path for each partner.

Step 8: VAT Deregistration (If Registered)

Civil Companies often generate service revenue, making VAT deregistration important.

FTA requires:

• Final VAT return
• Clearance of penalties
• Proof that the company has ceased operations

See more about VAT here on our VAT consultancy Page

Step 9: Close Bank Accounts & Utility Clearances

Obtain NOCs from:

• Banks
• Telecom providers
• Utility companies
• Tenancy authorities
• Municipal departments
• Professional bodies (if applicable)

Step 10: Final Liquidation Report (If Required)

If liquidation reports were mandated, the liquidator issues the final report confirming all obligations are cleared.

Step 11: Final License Cancellation from DED

Submit all documents and receive the official License Cancellation Certificate.

Your Civil Company is now legally dissolved.

• Trade license copy
• Partner passports & Emirates IDs
• MOA / Partnership Agreement
• Power of Attorney (if any)
• Liquidator appointment letter (if needed)
• Initial & final liquidation reports (if applicable)
• Establishment card
• Employee & partner visa cancellation records
• Bank closure letter
• Tenancy & utility clearance
• VAT deregistration confirmation

Timelines vary depending on partner structure and approvals:

• DED initial approval: 1 to 3 days
• Liquidator appointment (if required): 1 to 2 days
• Newspaper announcement (if applicable): 30 to 45 days
• MOHRE & immigration: 1 to 5 days
• VAT deregistration: 20 to 45 days
• Final cancellation: 2 to 5 days

Overall: 7 to 15 days for simple cases
Or 45+ days if newspaper ads & VAT are involved.

Costs depend on:

• Liquidator requirement
• Newspaper advertisement
• DED cancellation fees
• Immigration & labour clearance
• VAT deregistration
• PRO services
• Partner visa transfers

For accurate pricing, clients must contact us directly.

Nines Consultancy handles complex Civil Company liquidation with complete compliance, documentation, and coordination between partners and authorities.

You Get:

• Full liquidation management
• Drafting of partner resolutions
• Liquidator coordination
• Labour & immigration clearance
• VAT deregistration support
• Contract & tenancy closure guidance
• Partner dispute assistance (if applicable)
• Clear and transparent process
• WhatsApp updates from start to finish