Steps to Follow for Cancellation of Trade License in Dubai
When to Cancel Your Trade License?
If you want to cancel your trade license in Dubai, it is essential to get clearance from the government authorities. This will save you from fines or penalties that you may incur on your license if it is not renewed upon its expiry.
Concerned authorities and government bodies must be aware that you are no longer in the business. This will prevent them from charging accumulated fines and penalties incurred upon your license when it is not renewed upon the expiry date.
If you are in a shareholding company, make sure you have discharged your liabilities towards creditors and partners to protect your interests and shares.
Cancellation of your trade license when you fail to renew is also a wise decision, keeping your business reputation in view if you decide to open a business again in future.
From Where to Get Clearance?
The company has to get clearance from concerned government bodies:
- Approval from ministry authorised to undertake cancellation of trade license in Dubai.
- Closing of a bank account.
- Approval from the immigration department.
- Approval from any water and electricity authority.
What is the Process for Cancellation of Trade License in Dubai? (for all companies)
Process for cancelling trade license (for all companies)
Drafting of resolution: Prepare the board of resolutions to appoint the liquidator for the license cancellation, and then draft the cancellation contract in the notary public
Application for Trade license cancellation: The concerned person has to prepare an application for trade license cancellation.
Cancellation: Cancellation of all the employment visas under the trade license and get approvals.
Publication: Liquidation advertisement has to be published in two local newspapers. Confirmation of the Liquidator and Partners is a must with no objection from the third party at the time of publication.
Clearance: The visa and a company-established card will be cancelled, and the owner will get clearance from concerned bodies and authorities.
What are the Company Types for Which Liquidator is Appointed?
You will need to appoint a liquidator if you have any of the below legal forms of the company:
- General Partnership
- Limited Liability Company
- Simple Limited Partnership
- Public Joint Stock Company
- Private Joint Stock Company
What are the Documents Necessary for the De-registration of Free Zone LLC?
| S.No. | DOCUMENTS | TYPE |
| 1 | Members’ Resolution to dissolve the FZ-LLC | Notarised & Attested |
| 2 | Confirmation from the auditor that the FreeZone-LLC does not have any liabilities or debt claims to any 3rd parties. The letter must be accompanied by a copy of the professional license of the audit firm. | Original |
| 3 | Adv. Must be published one day in two local daily newspapers in English and Arabic (original) regarding the cancellation license of the company providing 45 days’ notice to the public. | Original |
| 4 | Clearances from:
GSO Dubai Customs Central Finance TECOM Leasing Dept.
|
Copy |
What are the Types of Closures for Freezone?
There are three types of closures for Free zones companies:
- Summary Winding up – when an organisation has no liabilities or can fix the liabilities within 6 months and start with a declaration of solvency
- Creditor winding up- Company passes a resolution for shutting down, followed by a meeting with the company’s creditors.
- Bankruptcy- The Court does this under the UAE Commercial Transaction Law No.18 of 1993.
What Documents are Necessary for Cancelation?
Documents Required for Liquidation Process in UAE
- License Copy
- Copy of Memorandum of Association (MOA) with complete alterations.
- Power of Attorney (if you have any)
- Resolution of Shareholder
- Emirates ID (EID) and Passport of Shareholders
- Filled Application Form for trade cancellation
Find a Business Consultant for a Hassle-free Cancellation Process
Business setup consultants are aware of all the legal procedures and practices followed for the cancellation of trade licenses in Dubai. Though the process is very simple, somebody with expertise in the trade license cancellation process can help perform your work efficiently. Therefore, hire a business setup consultant who is experienced in the process for a hassle-free trade license cancellation service.
