Dubai is one of the best places to start a business due to its lower taxes and numerous opportunities for entrepreneurs. However, every business needs a trade license, as this document allows the company to conduct its business operations and facilitates company formation in Dubai.
When a company wants to cease operations or undergo liquidation, trade license cancellation is mandatory to inform government entities of the current situation. Be aware that this is a lengthy and cumbersome process, so it is advisable to get guidance from professionals for a successful cancellation in a short duration.
In this article, we will discuss the complete process of how to cancel a trade license in Dubai. Let’s get started!
Why Need to Cancel the Trade License in Dubai?
Sometimes, a lack of profits, shortage of funds, and economic uncertainties force many business owners to close their businesses, which is quite a painful decision. In such scenarios, shutting down the business and canceling the trade license is mandatory to avoid accrued fines and penalties and to ensure the government has a record of the closure.
However, business closure often involves a series of steps, and no one wants to go through this process slowly due to the extensive paperwork involved. This is where you need to hire the professional team members of Alriyady Dubai, a trusted company that can provide all the support you need. Their experienced members will help you with the trade license cancellation as soon as possible.
How to Cancel Trade License in Dubai?
As mentioned earlier, for the working operation of any company, a business owner should have a valid trade license from the respective authority. However, If you have a plan to cancel your trade license in Dubai, then here are the following steps that you need to follow for this;
Prepare the Necessary Documents
In the very first step in case of Dubai Economic Department trade license cancellation, you need to prepare the board of resolutions and the cancellation contract, which should be official and witnessed by the notary public. After that, the business owners should draft an application for the cancellation of the trade license in Dubai.
Cancel Employment Visas
Secondly, all employment visas that are under this trade license should be canceled immediately and must get approvals from the authority that is dealing with this case. In the case of the mainland, you need to get permission from the Department of Economic Development. On the other hand, in the case of Free Zone Businesses, you need to get this from the Free Zone Authority.
Publish Business Cancellation Announcement
Once it is done, you need to publish the business cancellation announcement in the two local newspapers of UAE with a joint statement from the liquidator and partners indicating that there is no objection from any third party.
Pay the Trade License Cancellation Cost
After that, you need to pay the Trade license cancellation cost in Dubai, which is different from business to business; you’ll see your total amount at the time of cancelation license.
Obtain Visa Clearance
Finally, the owner needs to obtain visa clearance from the respective authorities.
Required Documents for Canceling the Trade License in Dubai
For the successful cancelation of your trade license, make sure you have all these documents with you and submitted to the authority:
- Your Passport copy, partner passport copy, and the Copy Visa with your Trade license copy
- Must have newspaper copies of the published liquidation details where it mentioned that there is no objection from any 3rd party.
- Original Immigration Establishment Card
- Original Company Stamp with Original Company Letterhead
- Power of Attorney (if you have any)
- Copy of MOA with complete alterations
- A clearance letter must be provided from the Customs
- With the Bank Account closure, your bank no liability certificate is needed, which you were using for the payment of your company employees.
Trade License Cancellation Fees
The trade license cancellation cost in Dubai typically starts from AED 1,020, and the company dissolution fee is AED 2,520. These fees can vary depending on the type of business. Additionally, you can make payments at Dubai Islamic Bank, Commercial Bank of Dubai, or Emirates Islamic.
There is also an option to pay directly with a debit card. These reputed banks process fees much faster than other local banks.
Wrapping Up
In a nutshell, the process of trade license cancellation is quite lengthy, often taking around four months due to extensive paperwork. While you can follow the above process yourself, it is advisable to start as soon as possible. After the 30-day expiry of your license, you will incur a penalty of AED 250 per day, accumulating daily.
For a fast and successful cancellation of the trade license process, consider booking a free consultation with Alriyady. Their experienced team can handle all the paperwork efficiently, ensuring a smooth experience without the hassle.
You can either call on Phone: +971 4 591 8185 or send text on whatsapp: +971 55 991 1404 for instant response. Apart from that, you can also use the official email saqib@alriyad.
