Dormant company: close or keep
My company has been dormant for two years. Close it or keep it?
The situation
A dormant company still has licence renewal costs and must keep filing Corporate Tax returns. Closing ends those duties.
The law
- Art 53, Federal Decree-Law 47 of 2022: Returns due for every period while registered
What it means for you
Example: renewal at AED 15,000 a year plus filings versus a one-off closure of about AED 4,500 to 7,500 for a sole establishment. If no plans exist, closing usually saves money.
What to do
- Estimate yearly cost of keeping it.
- Estimate closure cost.
- Decide.
- If closing, start tax deregistration first.
We can do this for youCompany liquidation and deregistration: VAT and Corporate Tax deregistration, visa cancellation and licence cancellation: AED 4,000