Shutting down a company in the United Kingdom and relocating to Dubai has become a very common decision among business owners, freelancers and entrepreneurs in recent years. Many business owners in the UK are frustrated with rising taxes, strict regulations, increasing cost of living and economic uncertainty. At the same time, Dubai is attracting global talent with its low tax structure, business friendly rules, premium lifestyle and global connectivity.
If you own a company in the UK and you plan to dissolve it before shifting your operations to Dubai, the process requires careful planning. You must follow UK legal procedures, settle all obligations, close your records properly and then create a clean foundation before building your new company in Dubai. This guide walks you through the complete journey in a simple and practical way.
You will learn how to dissolve a UK firm step by step, what documents you need, how to avoid penalties, how to protect yourself legally, how to shift your clients to Dubai and how to start your new business in a Dubai free zone. By the end of this guide, you will understand the entire transition clearly.
Why Many UK Business Owners Are Moving to Dubai
Dubai has become one of the most attractive business destinations in the world. Professionals who have managed companies in the UK for years find the Dubai environment refreshing because it gives them full control of their time, income and operations.
Here are some reasons why the shift from the UK to Dubai is increasing:
1. Zero percent personal income tax
One of the biggest reasons is the tax structure. Dubai does not tax your personal income, savings, investments or dividends. UK entrepreneurs who paid high income tax and national insurance find this appealing.
2. Strong business ecosystem
Dubai has an advanced banking system, simplified company formation rules, supportive free zones and easy access to international markets.
3. Better lifestyle
Dubai offers safety, well maintained infrastructure, good weather for most of the year, and diverse communities. The lifestyle upgrade is a strong motivator for families and individuals.
4. Fast growing business opportunities
From technology and e commerce to consulting and real estate, Dubai is experiencing continuous growth.
5. Low bureaucracy
In the UK, dealing with HMRC, Companies House and regulatory paperwork can be time consuming. Dubai removes unnecessary complications and gives entrepreneurs more flexibility.
What To Consider Before Dissolving Your UK Company
Before you start the dissolution process, take time to consider these points so you avoid mistakes.
1. Final taxes and HMRC compliance
Make sure all corporation tax, VAT, payroll filings and other statutory filings are completed. HMRC can reject your application if tax records are incomplete.
2. Outstanding debts or liabilities
You cannot dissolve a company while it owes money to creditors, banks or government authorities. These must be cleared first.
3. Contractual obligations
Check your agreements with clients, suppliers or partners. You may need to send notice before closing operations.
4. Transferring clients to Dubai
If you plan to continue business in Dubai, you must notify clients in advance and explain the new structure. Many entrepreneurs continue with the same clients under a new Dubai company.
5. Closing staff contracts
If you have employees in the UK, you must follow legal procedures for redundancy, settlements and final payments.
6. Closing bank accounts
Do not close the business bank account too early. You will need it to pay final taxes, receive refunds and make statutory payments.
Requirements to Dissolve a UK Company
There are two main ways to close a UK company:
1. Voluntary Strike Off (DS01)
This is the simplest method. You can apply for voluntary strike off if:
- The company has not traded for at least three months
- The company has no assets
- The company has no debts
- The company is not involved in legal action
2. Members Voluntary Liquidation (MVL)
This method is used when the company has assets or you want to withdraw profits in a tax efficient way. A licensed insolvency practitioner must handle MVL.
For most small businesses, voluntary strike off is the preferred method.
Step by Step Process to Dissolve a UK Company
Let us look at the full procedure in simple steps.
Step 1: Stop All Trading Activities
A company must stop trading for at least three months before applying for strike off. During this period:
- No invoices should be issued
- No new business should be conducted
- Cancel all subscriptions and automatic payments
You can still pay bills and complete legal responsibilities, but you cannot operate as an active business.
Step 2: Notify All Stakeholders
The law requires you to inform everyone related to your company:
- HMRC
- Clients
- Creditors
- Employees
- Banks
- Insurance providers
- Service providers
Communication must be clear and documented. This avoids future disputes.
Step 3: Close or Complete All HMRC Filings
Before applying for strike off, you must complete:
- Final corporation tax return
- Final annual accounts
- Final VAT return (if applicable)
- PAYE closure
- Deregistration from VAT or PAYE
Once submitted, HMRC might send a confirmation or ask for additional information.
Step 4: Close Employee Contracts Legally
If you have employees, follow proper redundancy processes:
- Give notice period as per contract
- Provide final salary
- Pay outstanding holiday pay
- File final payroll submissions
- Issue P45 or P60
Ignoring this step can cause legal problems later.
Step 5: Deal with Company Assets
Before dissolving the company:
- Sell or transfer company assets
- Close loans
- Close leases or rental agreements
- Distribute remaining profits to shareholders
Once the company is dissolved, any remaining assets will legally belong to the government.
Step 6: Submit DS01 Application to Companies House
The DS01 form is the main strike off application. It must be signed by the majority of directors. Filing fee is small and the process is simple.
You can file the form online or by post.
Step 7: Wait for the Notice in the Gazette
After the application, Companies House will publish a notice in the Gazette. If no objections are raised within two months, the company will be dissolved.
Creditors can object if they believe the company owes them money. This is why all debts must be cleared before applying.
Step 8: Receive Final Dissolution Confirmation
Once approved, your company will be officially dissolved. You will get confirmation that the company no longer exists as a legal entity.
After this date, the company cannot conduct any business or hold any assets.
Transitioning Your Business Activities to Dubai
Once your UK company is dissolved or is in the process of dissolution, you can start focusing on setting up your new business in Dubai. Many entrepreneurs run both processes in parallel to save time. Dubai does not require a long approval period, so you can register your new company while waiting for the dissolution process in the UK.
Let us go through the steps to move your business operations to Dubai smoothly.
Why Dubai is the Best Place to Relocate After Closing a UK Firm
When you shift from a heavy tax environment to a tax free environment, your business structure becomes significantly more efficient. Here is what Dubai offers to UK entrepreneurs:
- No personal income tax
- No capital gains tax
- No tax on dividends
- Easy setup
- 100 percent foreign ownership
- Global credibility
- High quality lifestyle
- Safe banking environment
Professionals earning from global clients often move to Dubai to protect their income legally and improve their financial efficiency.
Choosing the Right Structure for Your New Dubai Company
Dubai has many free zones and each one offers different advantages. Some popular options for entrepreneurs from the UK include:
1. Meydan Free Zone
Suitable for online businesses, consultants, digital agencies and small firms. Fast setup and low cost.
2. IFZA Dubai
Competitive pricing, flexible packages and a wide list of permitted activities.
3. DMCC Free Zone
Premium free zone ideal for international clients. Higher cost but strong credibility.
4. Dubai Internet City and Media City
Best for media, digital, tech and creative businesses.
5. DIFC
Best for regulated finance businesses. Requires approval from DFSA.
Choose your free zone based on:
- Type of business activity
- Budget
- Number of visas
- Office requirement
- Target client base
Documents Required to Form a Company in Dubai
Compared to the UK, Dubai paperwork is very simple. You usually need:
- Passport copy
- Passport size photo
- Contact details
- Activity description
- Trade name options
The entire process can be completed online with most free zones.
Step by Step Process to Start Your Company in Dubai
Let us walk through the complete process so you understand how the transition works.
Step 1: Choose the Free Zone and Business Activity
Every free zone has a list of approved activities. Select the one that matches your services. For example, consultants usually choose:
- Management consultancy
- Marketing consultancy
- Business advisory
- IT consultancy
Once your activity is approved, you can proceed.
Step 2: Reserve Your Trade Name
Choose a professional company name and submit it for approval. Dubai naming rules are simple and easy to follow.
Step 3: Apply for Initial Approval
Submit your passport copy, business activity, and contact details. Approval usually comes within a few hours or one working day.
Step 4: Sign the Incorporation Documents
The free zone will prepare your documents. You sign them digitally or at the business center.
Step 5: Receive Your License and Company Documents
Once issued, you receive:
- Business license
- Certificate of incorporation
- Memorandum of association
- Lease agreement
Your company is now legally active.
Step 6: Apply for Your Establishment Card
This allows your company to apply for visas.
Step 7: Apply for Your Dubai Residence Visa
You complete:
- Entry permit
- Medical test
- Biometrics
- Emirates ID
- Visa stamping
This gives you residency and tax residency status in the UAE.
Step 8: Open Your Corporate Bank Account
Dubai banks require:
- Passport
- Visa
- Company documents
- Business plan
- Client list or expected invoices
Many UK entrepreneurs choose digital banks like Wio Business for fast onboarding.
How to Move Your Clients From the UK to Dubai Legally
If you have clients in Europe, the United States or Asia, you can continue serving them under your new Dubai company. Here is how to manage the transition legally.
1. Notify your clients of the new company structure
Explain that you are relocating and will operate under your Dubai entity. Most clients do not mind as long as service quality stays the same.
2. Issue new contracts under your Dubai company
Update your service agreements with the new company name, address and banking details.
3. Switch your invoicing
Send invoices from your Dubai entity. Payments will go to your Dubai corporate bank account.
4. Remember double taxation rules
Dubai does not tax your income. The UK will not tax you once you are non resident. To be safe, understand the Statutory Residence Test to avoid being classified as a UK tax resident.
Tax Residency Considerations When Moving From the UK to Dubai
To stop being taxed in the UK, you must meet the conditions of non residence. Some important points include:
- Spend fewer than 16 to 45 days in the UK depending on your ties
- Cut financial and employment ties if possible
- Establish your main home in Dubai
- Demonstrate economic presence in Dubai
Dubai tax residency requires:
- Valid Emirates ID
- Spending more than 90 days per year in the UAE
- Or employment or business license that proves local presence
Once you become a UAE tax resident, you can use Dubai’s tax benefits legally.
How Much Does It Cost to Set Up a Company in Dubai After Closing a UK Business
Costs depend on the free zone and the number of visas. On average:
- License fee: 10,000 to 20,000 AED
- Visa: 3,500 to 5,000 AED
- Establishment card: 500 to 1,000 AED
- Medical and Emirates ID: 1,000 to 1,500 AED
This makes Dubai one of the most cost efficient international business hubs.
Common Mistakes to Avoid When Dissolving a UK Company and Moving to Dubai
Many entrepreneurs make mistakes because they rush the process. Avoid the following:
1. Closing the UK company before finishing HMRC work
This can result in penalties and reactivation of the company.
2. Not planning tax residency correctly
If you spend too many days in the UK, you may still be taxed.
3. Switching clients too early
Do not invoice from Dubai until your Dubai company is active.
4. Closing the UK bank account too early
You still need it for final HMRC settlements.
5. Opening your Dubai company in the wrong free zone
This can affect banking, credibility or cost.
Is It Worth Moving Your UK Business to Dubai
For many entrepreneurs, the answer is yes. Shifting from the UK to Dubai allows you to:
- Keep more of your income
- Operate in a global business hub
- Enjoy a better lifestyle
- Reduce paperwork
- Scale faster
- Attract high value clients
Dubai offers the right balance of opportunity, safety, efficiency and growth. If your business is online, service based or consultancy focused, the transition becomes even easier.
Final Thoughts
Dissolving a UK company and establishing a new business in Dubai is a major step, but with the right planning, it is one of the most rewarding moves you can make. The UK requires you to follow a structured process through Companies House and HMRC, and Dubai gives you a clear and simple pathway to form a new company. When done correctly, you can shift your operations smoothly, maintain your clients, protect your income and build a new life in a tax friendly and opportunity rich environment.
If you’re considering shutting down your UK company and relocating your business interests to Dubai, GenZone can guide you every step of the way. From choosing the right free zone to handling visas, banking, and tax residency, their team ensures a smooth, transparent, and stress-free transition. They don’t upsell, they don’t confuse, and they don’t hide fees — they simply help you move your business to Dubai the right way. If you want expert support tailored to your situation, reach out to GenZone and start your Dubai journey with confidence.
