1 September 2026 · Dubai FAQ

Deregistration vs Licence Cancellation

Cancelling your Dubai trade licence and deregistering for corporate tax are two separate steps. Licence cancellation ends your commercial registration with the licensing authority; corporate-tax deregistration ends your obligation with the FTA. If you cancel the licence but skip FTA deregistration, the tax registration stays open and the late-deregistration penalty can accrue. Close both, in order, to exit cleanly.

Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting

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The confusion

They are not the same

Each is handled by a different authority.

  • Licence cancellation is with the licensing authority.
  • Tax deregistration is with the FTA.
  • One does not trigger the other.
  • Skipping FTA deregistration keeps the file open.
The fix

Close both cleanly

Coordinate the two closures.

  • File the final corporate-tax return.
  • Clear all tax and penalties.
  • Deregister with the FTA within 3 months.
  • Then finalise licence cancellation.

Frequently Asked Questions

For Dubai owners closing a company.

If I cancel my licence, am I deregistered for tax?

No. You must separately deregister for corporate tax with the FTA within 3 months of cessation.

Which comes first?

File the final return, clear balances and deregister for tax; coordinate with licence cancellation so nothing is left open.

What if I only cancelled the licence?

The tax registration stays open and a late-deregistration penalty can accrue until you deregister.

Can Exiloz coordinate both?

Yes. We handle the tax deregistration and align it with your licence closure.

Close your Dubai company cleanly

Exiloz aligns your tax deregistration with your licence cancellation so nothing is left open.

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