Closing a business in the UAE is a structured and legal process that goes far beyond just stopping operations or handing in your trade license. Among the most critical requirements are clearances from MOHRE (Ministry of Human Resources and Emiratisation) and GDRFA (General Directorate of Residency and Foreigners Affairs). So it does mean that MOHRE & GDRFA Clearances in Dubai are very important. These clearances are mandatory steps in the company liquidation process especially for businesses with employees or residency linked obligations
What is MOHRE Clearance?
MOHRE, formerly known as the Ministry of Labour, oversees all employment-related matters for mainland companies in the UAE. When closing a business, MOHRE clearance that all employee rights are settled, including:
- Final salaries and benefits
- End of service gratuities
- Contract terminations
- Visa cancellations
Why is MOHRE Clearance Important?
Legal Employee Termination: You must legally terminate every employee’s contract and cancel their work permits.
Protecting Employee Rights: MOHRE that no dues are pending toward workers.
No Objection Certificate (NOC): Required from MOHRE before your trade license can be canceled.
Avoiding Penalties: Unsettled contracts or disputes can delay closure and lead to fines or court cases.
What is GDRFA Clearance?
GDRFA (also known as Dubai Immigration) handles residency visas, entry permits, and Emirates ID linked services. During business closure, GDRFA clearance is necessary to:
- Cancel all residency visas under the company (employees and dependents)
- Confirm there are no pending immigration obligations
Why is GDRFA Clearance Important?
Visa Cancellation Compliance: Every residency visa under the company must be canceled officially.
Avoid Future Immigration Issues: Uncanceled visas can block future residency, business registration, or travel.
Prevents Fines: Delays or skipping visa cancellations can lead to immigration penalties.
Necessary for License Cancellation: GDRFA clearance is a prerequisite for final license deregistration.
So these both MOHRE & GDRFA Clearances in Dubai are important.
When Is a Liquidation Report Required?
For Mainland LLCs in Dubai, a Liquidation Report is mandatory.
For Mainland Sole Establishments, a Liquidation Report is not required.
For Free Zone Companies liquidation, a Liquidation Report is usually required, especially in Free Zone LLCs (FZ-LLCs).
The Liquidation Report is submitted during the final phase of liquidation after several steps are completed:
- Trade license cancellation process has been initiated.
- The liquidator has been officially appointed.
- The mandatory newspaper notice period (typically 45 days) has been completed.
- All outstanding dues, taxes, and government clearances have been settled.
Only after the Liquidation Report is submitted and accepted by the relevant authority, the company will receive the Final License Cancellation Certificate.
How to Get MOHRE Clearance, Step-by-Step
Terminate Employment Contracts
Submit official termination notices for all employees
Ensure final dues and gratuities are settled
Cancel Work Permits
Submit cancellation requests via the MOHRE portal or Tasheel center
No Pending Labor Disputes
Resolve any disputes through MOHRE mediation
Get MOHRE Clearance Certificate
Once all obligations are cleared, request your final clearance certificate
Note: You must also submit proof of license cancellation or liquidation process from the Department
of Economic Development (DED) or Free Zone authority.
How to Get GDRFA Clearance Step by Step
Cancel Residency Visas
Cancel all active visas under your company’s sponsorship (employees and dependents)
Settle Overstay Fines (if any)
Pay any pending overstay or visa-related fines
Submit Clearance Request
Through the GDRFA portal or Amer service centers in Dubai
Obtain Immigration Clearance Certificate
Once verified, GDRFA will issue a final clearance stating no outstanding visa liabilitiesThrough the GDRFA portal or Amer service centers in Dubai
Note: This is also required by banks and the FTA for final closure or VAT deregistration.
How Professional Support Helps
Working with a business liquidation expert can make a significant difference. They coordinate between all government entities, MOHRE, GDRFA, DED, Free Zones, FTA, and more to ensure a seamless and compliant closure.
Benefits of hiring liquidation professionals:
- Avoid delays and paperwork errors
- Ensure correct sequence of clearances
- Reduce risks of fines or missed steps
Faster and stress-free closure
Final Checklist: MOHRE & GDRFA Clearance
- Terminate employment contracts.
- Cancel all work permits.
- Pay all pending salaries and end-of-service gratuities.
- Resolve any outstanding labor disputes.
- Cancel residency visas for all employees and their dependents.
- Clear all immigration fines, if any.
- Obtain clearance certificates from both MOHRE (Ministry of Human Resources & Emiratisation) and GDRFA (General Directorate of Residency and Foreigners Affairs).
Frequently Asked Questions (FAQs)
Yes, MOHRE clearance is mandatory for all mainland companies that have registered employees or work permits. Even if you have no active employees, you still need to obtain MOHRE clearance to confirm no outstanding obligations exist.
Free Zone companies generally handle employee contracts under their respective Free Zone Authority. In some cases, Free Zone authorities coordinate directly with MOHRE. It’s important to check with your Free Zone whether additional MOHRE clearance is necessary.
If visas are not properly canceled, they remain active in the system, which can lead to immigration fines, restrictions on shareholders or owners, and delays in future visa or license applications.
If all paperwork is correct and there are no disputes or pending fines, MOHRE and GDRFA clearance
can usually be obtained within a few days to one week. Any outstanding issues can extend the timeline.
No. Both clearances are legally required to proceed with final trade license cancellation. Without them, the licensing authority will not approve your company’s liquidation.
Conclusion
MOHRE and GDRFA clearances are not optional steps in the company liquidation process they are legal requirements that ensure your business closes without unresolved obligations. From employee rights to immigration compliance, these clearances protect your business from penalties, lawsuits, and future operational blockages.If you are planning to close your company in Dubai or anywhere in the UAE, act smart and prioritize MOHRE and GDRFA clearance early in the process.
