Liquidation is the process by which an organization or a part of it, such as an LLC, sole proprietorship, Dubai Freezone organization, or establishment, ceases operations, and the assets and property of the company or foundation are distributed to the banks and investors (owners) of the UAE registered Company. Liquidation, also known as winding up or dissolution, becomes necessary in Dubai, UAE when a company does not have liquid assets to maintain the organization's daily operations, leaders are not being paid, or the company commits a serious offense, and an administrative authority or office in UAE or Free Zone Authority is responsible for the process.

There are differences in the liquidation process between Freezone organizations and Dubai mainland. Freezone organizations must obtain approval from the Board for selling the company and planning the exit process. In contrast, in Dubai mainland, LLC organizations must pass and legally approve the Board Resolution to transfer/dissolve/wrap up the LLC organization's activity and name vendors. Additionally, each Freezone must comply with the process designated by the Freezone, with some Freezones requiring 45 days of paper advertising for any objection. Dubai mainland must receive a letter from the auditor before deciding to transfer the organization, as well as clearances from government departments such as DEWA, ETISALAT/DU, RTA, Bank, Department of Labor and Immigration, and others.