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It's one of the most disheartening moments for a new business owner: you've paid for the DED trade licence, signed the Ejari, registered on EmaraTax, bought your equipment — and then circumstances mean you simply can't continue. The instinct is to ask, "can I get my money back?" On the licence itself, the honest answer is no: once it's issued, the fee is spent.
But that's not the end of the story. The real question isn't "refund or no refund" — it's which exit costs you the least, and how to avoid the tax penalties that quietly pile up if you walk away without closing things properly.
First, the refund question
No, there's no partial licence refund
Once your DED trade licence is issued, the government fee for it is treated as consumed — cancelling before renewal does not trigger a partial refund. The one place you might recover something is rent: if you took a physical office unit, you can try to negotiate a partial refund with the landlord (a flexi-desk / business-centre Ejari typically won't refund). Beyond that, recovery comes not from refunds but from choosing the cheaper exit.
Your three real options
Transfer, freeze, or liquidate
1 · Transfer / sell the licence
Often the cheapestInstead of cancelling, you find a buyer and transfer the company (its shares) to them. Both parties draft a share-transfer resolution before a notary public, notarise it, then complete the amendment process at DED. It's usually cheaper than full liquidation, and it gets the licence — and any value in it — off your hands.
Best if: you can find a willing buyer, or your provider can match a minimal-cost share transfer.
2 · Freeze the licence
~AED 3,000–5,000 (indicative)If you might return later, you can freeze the licence rather than close it. A freeze typically runs for a minimum period (often no less than three years) and is usually allowed once in the licence's lifetime. It parks the company at a much lower cost than liquidation — but it's a pause, not an exit, and you'll still need to handle your tax position.
Best if: you may revive the business and want to avoid full closure costs now.
3 · Liquidate (full closure)
~AED 10,000–12,000 (indicative)The complete wind-down. It's typically a 2–3 month process and the most expensive route, because it involves appointing a liquidator, a liquidation report, a newspaper advertisement, then cancelling the establishment card and licence and deregistering for tax. Some steps (the notary, DET/DED steps and the tax deregistrations) you can do yourself; the liquidator appointment and the advertisement generally go through third parties.
Best if: no buyer is available and you want the company fully and finally closed.
There's no refund to chase — so the win is in the choice. A share transfer or a freeze can cost a fraction of a full liquidation.
The order of closure
If you liquidate, this is the sequence
Closing a mainland company isn't a single button — it's a sequence, and doing it out of order causes delays:
- Settle assets & liabilities Clear what's owed and account for what the company owns.
- Appoint a liquidator & issue the liquidation report A registered liquidator is appointed and prepares the report.
- Publish the newspaper advertisement The mandatory public notice of liquidation.
- Cancel the establishment card & immigration file Including any visas under the company.
- Cancel the trade licence With DED, which issues the cancellation letter.
- Deregister for VAT and Corporate Tax Separately, on EmaraTax — see the deadlines below.
The part people forget
The two tax deadlines that fine you
Here's the trap that turns a clean exit into a penalty: cancelling your trade licence does not close your tax registrations. The FTA doesn't automatically learn your business has stopped — you have to tell it, on EmaraTax, and there are two separate clocks:
| Tax | Deadline to deregister | Late penalty |
|---|---|---|
| VAT | Within 20 business days of ceasing taxable supplies / licence cancellation | AED 1,000 per month, capped at AED 10,000 |
| Corporate Tax | Within 3 months of cessation / dissolution | AED 1,000 per month, capped at AED 10,000 |
Deregistration itself carries no FTA fee — but it must be filed, and the final VAT return and any outstanding liabilities must be cleared before it's approved. If you don't deregister, the entity stays "active" in the FTA's eyes, filing obligations continue, and the monthly penalties accrue on a company that no longer trades.
⚠️ Freezing or transferring? You still have a tax position
A freeze or a share transfer doesn't automatically resolve your VAT and Corporate Tax registrations. If the business has stopped making taxable supplies, the VAT deregistration clock can still apply. Confirm your tax position whichever exit you choose — don't assume parking the licence parks the tax.
The leftovers
Recovering value from tools and equipment
For the hand tools, equipment and any fit-out you bought, the recovery route is the second-hand market rather than any official channel: local marketplaces and community groups (the usual UAE classifieds and Facebook groups) are where contracting and renovation tools tend to move quickly. It won't recover the licence cost, but it chips away at the total loss.
AED 0
Licence refund
~3–5k
Freeze (indicative)
~10–12k
Liquidation (indicative)
20d / 3m
VAT / CT dereg deadlines
✅ Minimise the loss — in this order
1) See if the licence can be transferred/sold. 2) If not and you might return, consider a freeze. 3) Otherwise liquidate properly. 4) Whichever you pick, deregister VAT and Corporate Tax on time so penalties don't undo your savings.
Exiting a mainland company? Don't let tax penalties eat your savings.
Whether you transfer, freeze or liquidate, we handle the VAT and Corporate Tax deregistration on EmaraTax — on time, with the final return — so a closed business doesn't keep generating fines.
The services you'll need
20-day deadline
VAT Deregistration
We file your VAT deregistration and final return on EmaraTax within the 20-business-day window. From AED 499.
Learn more →
3-month deadline
Corporate Tax Deregistration
We handle your Corporate Tax deregistration and final return so the entity closes cleanly. From AED 399.
Learn more →
FAQ
Frequently asked questions
Can I get a refund on my DED trade licence if I cancel before renewal?
No. Once the trade licence is issued, the government fee is treated as consumed and isn't partially refunded on early cancellation. You may, however, be able to negotiate a partial refund of office rent with your landlord (not usually for a business-centre/flexi-desk Ejari).
Can I sell or transfer my licence instead of cancelling it?
Yes. With a willing buyer, you can transfer the company's shares — draft and notarise a share-transfer resolution before a notary public, then complete the DED amendment process. It's usually cheaper than full liquidation.
What does it cost to liquidate a Dubai mainland company?
Indicatively around AED 10,000–12,000 and typically 2–3 months, covering the liquidator appointment, liquidation report, newspaper advertisement, establishment card and licence cancellation, and tax deregistrations. Figures vary by case.
What is freezing a licence?
Freezing parks the licence rather than closing it — usually for a minimum period (often three years) and generally allowed once in the licence's lifetime, at an indicative AED 3,000–5,000. It's a pause, not an exit, and you still need to address your tax position.
Do I have to deregister from EmaraTax, and are there penalties?
Yes. Cancelling the licence doesn't close your tax registrations — the FTA must be told. VAT deregistration is due within 20 business days of ceasing taxable supplies; Corporate Tax within 3 months of cessation. Late deregistration accrues AED 1,000 per month, capped at AED 10,000, for each. Deregistration itself has no FTA fee.
How do I recover value from my tools and equipment?
There's no official refund route — sell them on local second-hand marketplaces and community groups, where renovation and contracting tools tend to move quickly.
This article is for general information only and does not constitute legal, tax, or licensing advice. Costs and timelines are indicative and depend on your specific company, licence and activities; DED and FTA requirements can change. Tax deadlines and penalties are set by the FTA and relevant decisions. For a tailored plan, contact Fastlane Consultancy.