Guide · updated 16.10.2026 · 8 min read · Lucent Legal team

Putting a UAE company on hold: what you can do without closing it

Key points

  • DMCC: voluntary licence suspension (dormancy) for 12, 24 or 36 months at AED 5,000, 10,000 or 15,000. No more than 36 months over the company's life.
  • JAFZA: a one-year freeze at AED 3,000, plus AED 1,000 to reactivate. You apply before the licence expires or within 30 days after.
  • RAKEZ does not offer a freeze. DET had no live service page for one on 16.10.2026; the only references are press reports from 2010 and 2018.
  • Every scheme we found requires you to cancel visas and leases first, and DMCC also requires bank accounts closed or suspended.
  • Corporate tax: the registration and the annual return stay. You leave the system only by deregistering after the business ceases, with an application due within 3 months.

The UAE has no single "dormant company" status. You can suspend a licence only where the registrar offers that service, and only on its terms: visas cancelled, lease ended, bank account frozen. Suspending the licence does not stop your tax filings: as long as the company stays registered with the FTA, it files returns.

Where you can freeze a company

Registrar Service Cost Conditions
DMCC Voluntary Suspension of Licence (Dormancy) AED 5,000 (12 months), 10,000 (24), 15,000 (36); extension AED 5,000 a year Licence valid for at least 12 months first; not for branches; visas and leases cancelled; accounts closed or suspended; auditor's solvency letter
JAFZA Company Freeze AED 3,000 a year, AED 1,000 to reactivate Apply before expiry or within the 30-day grace period; end the lease, clear visas, get Customs, RTA and Etisalat clearances
Expo City Dubai Freezing of Licence AED 3,000 a year, AED 1,000 to reactivate Under the zone's Licensing Regulations No. 2 of 2024
SHAMS Licence suspension on application Fee not published SHAMS Companies Regulations 2017, clause 13.1
RAKEZ None n/a "Freezing a licence is not available" (RAKEZ renewal site)
IFZA Not found on official pages n/a Ask the zone
DET (Dubai mainland) No live service page n/a Ask DET before you decide

How DMCC dormancy works

DMCC describes its scheme in the most detail. The company applies and:

  • cancels all visas and leases;
  • closes or suspends its bank accounts;
  • the manager resigns, while directors and the secretary stay in office;
  • files an auditor's solvency letter.

A dormant DMCC company cannot transfer shares. If it files neither for reactivation nor for an extension when the period ends, DMCC may terminate the licence.

Financial zones: dormant for accounts, not for the licence

In ADGM a company with no significant accounting transactions counts as dormant and is exempt from audit under ADGM rules. But if it wants the 0% rate as a QFZP, it needs audited accounts whether dormant or not. In DIFC, companies that are neither a Reporting Entity nor an Ancillary Service Provider are exempt from audit and from filing accounts. We found no separate dormant status in DIFC. You pay the licence and annual fees in both zones as usual.

Tax: a freeze does not stop it

Corporate tax. In public clarification CTP003 the FTA states that an expired licence does not by itself mean the business has ceased. A company with a suspended licence stays registered and files a return every year, even a nil one. The corporate tax law has no dormant regime. You can deregister once the business has ceased: apply within 3 months of cessation, liquidation or dissolution (FTA Decision No. 6 of 2023). Processing takes up to 40 working days.

VAT. If the company stops making taxable supplies, VAT deregistration is mandatory (Art. 21 of the VAT law). Below the AED 375,000 mandatory threshold it is optional. A voluntary registrant cannot deregister in its first 12 months. The FTA service page on 16.10.2026 gives 30 business days to apply; an older FTA guide said 20. Late deregistration costs AED 1,000 a month, capped at AED 10,000.

A Russian owner. As long as you hold the shares, you file CFC notices every year, even with zero profit: CFC rules for a UAE company owner.

Freeze, keep it ticking over, or close

  • Freeze if the company sits in DMCC, JAFZA or another zone with the service, and the business will return within one to three years. You keep the incorporation date, the company's history and, in DMCC, the licence itself. You pay the zone's fee and keep filing tax returns.
  • Keep it ticking over: renew on the cheapest package, keep one flexi-desk and file nil returns. It costs more than a freeze, but banks and counterparties still see an active company.
  • Close if the business will not come back. It costs less over time, and you can open a new company later in one to three weeks: liquidating a company in the UAE.

Do not simply stop paying. The licence expires and fines start on every line: expired trade licence in the UAE.

FAQ

Can I freeze a UAE company without closing it?

Only with a registrar that offers the service. On 16.10.2026 official rules exist at DMCC (dormancy up to 36 months), JAFZA (one-year freeze), Expo City Dubai and SHAMS. RAKEZ does not offer one, and DET has no live service page.

How much does DMCC dormancy cost?

AED 5,000 for 12 months, AED 10,000 for 24 and AED 15,000 for 36. An extension costs AED 5,000 a year, with a lifetime cap of 36 months.

Do I file a corporate tax return while the company is frozen?

Yes. A licence freeze does not remove the FTA registration. You file every year until you deregister.

Can I keep the owner's visa on a frozen company?

Not in DMCC or JAFZA: you cancel visas before the freeze. The establishment card also renews only against a valid licence.

Can I sell shares in a frozen company?

Not in DMCC: a dormant company cannot apply for a share transfer. You reactivate the licence first.

Sources

This guide is for information only and is not legal advice. Freeze conditions come from official zone documents as of 16 October 2026; confirm them with your registrar before you apply. Lucent Legal is a management consultancy (DET licence No. 1192929): we help you compare the cost of a freeze, minimal upkeep and closure for your company.

Related: running a company in the UAE, tax deregistration of a company, business and companies in the UAE.

Topic: Doing Business in the UAE

Get a lawyer's help: Company formation in the UAE

This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.