Dubai is indeed a business land of opportunity that attracts entrepreneurs and established businesses around the world. However, some situations may arise when you have to cancel your trade license. As per articles 306 and 326 of the UAE’s federal law No.2 of 2015, Trade License Cancellation in UAE can occur under the following circumstances such as;
- Conclusion of Business Mission in the UAE
- Liquidation
- The period of the business has expired
- Due to bankruptcy
- The company has lost nearly every asset it possessed
It is essential to handle the process of canceling your trade license properly in any of the above situations to avoid any legal or financial complications.
What are the steps to cancel a Trade License in UAE?
The step-by-step procedure of Trade License Cancellation in UAE is followed;
1- Preparation
The first step of the cancellation of a Trade License in UAE is to get prepared for the board of resolutions and the cancellation contract. It must be officially perceived by a notary public.
2- Settlement of Financial Obligations
The next step is to settle all the financial obligations related to your business. It may include outstanding debts such as loans and payments to suppliers.
3- Application for Cancellation of Trade License
After completing the major steps, the business owners have to draft an application so the cancellation process of trade licenses can go forward in the UAE.
4- Cancellation of Employment Visa
The next step is to cancel all the employment visas, and work permits under the trade license and get the essential approvals from the relevant authority. It is important to note that if the cancellation is made on the mainland, the Department of Economic Development permission is required. In the meantime, you have to get approval from the Free Zone Authority if it falls under the class of free zone.
5- Publication
After the visas and permits are canceled, the subsequent step is to publish the liquidation announcement in 2 local newspapers. One must be in Arabic and the other one will be in English. A joint statement from the liquidator and associates also requests to be received which mentions that no objection from a 3rd party had been filed during the publication period.
6- Pay the Dubai Trade License Cancellation Fees
After that, you must pay the Dubai trade license cancellation fees. Also, it is recommended to get direction from top consultants such as Farahat & Co. Their experts will provide a complete structure for the trade license cancellation cost in Dubai. This will help you to decide how to move headlong.
7- Returning the permits and disposing of assets
After paying the trade license cancellation fees, the next step is to return the original trade license to the issuing authority. Afterward, dispose of company assets properly, such as selling, relocating, or liquidating them. Settle all the requirements related to property leases, dismissing rental contracts and payment linked dues.
8- Clearance
The last step is to obtain a visa clearance for canceling a trade license in the UAE. After that, the company trade license will be officially canceled. The owner will have clearance from the related authorities.
What are the required documents to submit for Trade License Cancellation in UAE?
The required documents to submit for Trade License Cancellation in UAE are;
- Trade License Copy
- Final Accounts
- Liquidation Report
- Shareholders’ Resolution
- Passport Copies
- Emirates ID Copies
- Bank Account Closure Certificate
- Visa Cancellation Certificates
- Labor Clearance Certificates
- Tax Clearance Certificates
- Newspaper Publication
- Debtors and Creditors List
- Application Form
Conclusion
Cancellation of a trade license in the UAE is a full step-by-step procedure. It requires careful obedience to legal, financial, and managerial obligations. From the Settlement of Financial Obligations to employee matters such as canceling visas and permits to obtain essential clearances and publishing public notices, each step is fundamental to ensure an effective and compliant closure. It is recommended to get expert guidance to handle this complicated process efficiently. Farahat & Co. is a well-known and top one among the UAE consultants. Their proficient team offers proficient advice and assistance that ensures all actions are followed properly.
