No matter what type of license you own in UAE, once you decide to shut down your business, the first and the most important things you must do is to cancel your trade license. Failing to cancel your trade license and not renewing it after the expiry date, it will lead to penalty and fine from the government.
As Dubai 2020 Expo is approaching, the time given for renewal is one month, and one must decide whether to cancel or to renew it.
It is a long process to cancel a trade license as it takes almost 40 – 60 days, which excludes the holidays.
The whole process of canceling the license depends upon the company type. Civil company or the sole establishment is easier to cancel when compared to the limited liability company. So, before the cancellation process starts, the company has to get cleared from the government department like that of
- Closing of Bank Account
- Labour department ministry
- Department of immigration
- Dubai electricity and water and
- Termination of office tenancy
General Requirement for License Cancellation
The company that works on the limited liability must designate an auditor for the license cancellation. The whole process involves two stages such as
Stage 1
- The application for cancellation must be prepared.
- The next step should be the cancellation of all the employee’s visas that falls under the licensed trade and get cleared from the labor department ministry.
- The board of resolution must be prepared to designate the liquidator for the cancelation of license.
- The cancellation contract must be prepared under the notary public.
- The cancellation of the company must be advertised in any two local newspaper given 45 days’ time. During that period, the supplier must submit for claims, if any. If anyone claims during the time period, the due must be settled. The reason for the cancellation must also be mentioned in the paper advertisement.
Stage 2
- If the shareholder has any partner visa, it must be canceled.
- The company’s establishment card must be canceled. Only then they will get the clearance from the department of immigration.
- The clearance must be collected from the Etisalat, DEWA, etc.
- Get cleared from the Dubai customs.
Once the above-mentioned document has been submitted to the department of economics, they will give the voucher for payment to cancel the license. Once the payment has been done, they will approve the cancellation certificate.
Freeze Trade License
The cancellation cost can be avoided with the help of Freeze Trade License with the time period of 1-3 years. This can be done if only there are no legal actions against the company or shortage of employees.
To learn more about the cancellation rules and procedures, check the website companysetup.ae
