This article will provide you with essential information for canceling a trade license in Dubai.
Closing your business can be a difficult choice to make. We always recommend that you seek current advice from a lawyer, business consultant, and other business professionals, including accountants, bankers, and the UAE Federal Tax Authority.
Please keep in mind that while the general procedures of closing a business are similar, each jurisdiction has slight variations depending on the type of business and the business jurisdiction (mainland, free zone, offshore).
Steps to Close a Sole Proprietorship in Dubai:
- Fill in the business closure documentation available through the relevant jurisdiction.
- Submit a copy of the trade license.
- Cancel the resident visas under the license.
- Cancel the Establishment Card at the Ministry of Human Resources and Emiratisation or via the relevant free zone jurisdiction
- Collect business activity-specific “No objection certificates” and approvals. Some parties to collect approvals or NOC’s include the Immigration department, electric and water department, telecom authority, labour department, landlord, and bank.
- Submit the above documents via the approved channels and collect the “License Cancellation Certificate”.
Please note that the above process will vary if there is a bankruptcy. To understand this process, consult a lawyer who can elaborate on UAE Law No. 18 of 1993 ‘Concerning Commercial Transactions’ which provides a framework for bankruptcies.
Steps to Close Businesses Other Than Sole Proprietorships, or Civil Works Companies in Dubai:
Step 1 – Dissolve the Company and Appoint a Liquidator in Dubai
- Draft notarized board resolution to confirm the company liquidation in English and Arabic.
- Appoint an official liquidator for the company. Please note that certain jurisdictions have a specific list of approved liquidators.
- Request a letter from the liquidator accepting the responsibility to liquidate the company.
- Publish an announcement of liquidation in two local Arabic local newspapers; the notice should give the public 45 days to submit any claims or objections.
Step 2 – Company Deregistration
- Submit a declaration letter from the liquidator and your business partners indicating no objections from any external parties during 45-days of dissolution announcement.
- Submit the original newspaper in which the announcement was published.
- Also, Submit the company’s final financial report and a letter from the company’s bank that no outstanding loans or charges are due.
- Cancel all residence visas under the company at the General Directorate of Residency & Foreigners Affairs or applicable free zone.
- Cancel the establishment card at the Ministry of Human Resource and Emiratisation or applicable free zone.
- Collect business activity-specific “No objection certificates” and approvals.
- Submit all the above documents along with step 1 documents through relevant channels and get a legal advisor’s or free zone official’s approval.
- The relevant jurisdiction will determine the total fees to be paid for the cancellation of the license.
- Pay all the outstanding deregistration fees. You should receive a certificate of deregistration or a letter of deregistration.
Let Seasoned Professionals Take Care of Your Business Closure
As you can see from the lists covered in this article, there are many procedures and documents required in closing your business in Dubai. Business owners often are burdened with dealing with all the bureaucracy on top of the emotional turmoil involved in closing a cherished business. Small mistakes can translate into unforeseen delays and cost overruns. We have helped hundreds of businesses cancel their trade licenses in a variety of jurisdictions, let us help you through a free consultation to discuss your needs.