Questions & Answers
How can I close my free zone company if it has never been operational?
I opened my company in a free zone last year with a third-party agent (e-commerce). It was registered for corporate tax, and I got the visa and the Emirates ID, but the company hasn't been operational, and didn't get a bank account.
Now I got a notification that my trade license is expiring soon. I contacted a third party, and they quoted me 8,500 USD (AED 31,000) for renewal. I said, since I'm not in the UAE and not going to do any business in the UAE, I want to close it.
They quoted 9,000 USD (AED 33,000) for closing, with prices like "publications in newspaper" for 1,000 USD. I found their prices unreasonably high and wanted to proceed with another company that quoted the same process for AED 5,000.
I also contacted IFZA Freezone to ask how much it will cost to work with them directly, but I'm constantly being pushed by the free zone to work with an agent. I asked the agent for an NOC certificate, and they quoted it for 3,000 USD.
I want to know what my rights are in all this?
Should I just pay whatever price they ask for?
No, you do not have to pay whatever price the agent demands.
Free zone authorities determine the official costs, and agents only charge reasonable administrative fees.
You can switch agents or deal directly with the free zone to close the company at the official cost.
NOC fees and “publication charges” are negotiable if not mandated by the free zone.
