In the case of closing down a business in Abu Dhabi, some proper procedures and steps need to be followed. An Abu Dhabi trade license cancellation allows for a seamless process of shutdown. Rightfully performing the cancellation of a trade license minimizes the possibility of future liabilities and helps in compliance with the law as ordered through the Abu Dhabi Department of Economic Development (ADDED). This article provides a step-by-step guide on canceling a trade license in Abu Dhabi, covering all the relevant information, requirements, and fees.
What is Trade License Cancellation?
Trade license cancellation is the legal closure of a company that allows business owners to shut down all activities and officially deregister their companies. The process must be followed to avoid future penalties and other legal consequences. In Abu Dhabi, ADDED oversees trade license cancellation, with defined requirements and associated fees for completing the process.
Reasons for Cancellation of Trade License
Following are some of the reasons for the cancellation of a trade license:
- Business Closure: When you close your business operations for good, it may be due to changes in the marketplace, economic changes, or maybe someone decides to pursue better opportunities.
- Restructuring: Moving your business or the mode of operation could lead to the cancellation of a license. This may be either on the grounds of streamlining operations or changing to a better location.
- Shift in Business Activity: Sometimes, businesses change what they do and hence require a new license to trade. This could be because your current model isn’t working, or you are moving into a new industry.
Knowing your reason for cancellation helps you in preparing the right documents and meeting all the requirements. Each of these situations has different needs; therefore, this understanding will ease the process.
Steps to Cancel Your Trade License in Abu Dhabi
1. Prepare Necessary Documents:
Please collect all the documents required in advance. These include, but are not limited to:
- Shareholders’ Resolution: Notarized and attested Shareholders’ Resolution resolving to dissolve the company pursuant to Articles of Association.
- Manager’s Written Undertaking: Written undertaking by the manager for non-liability.
- Declaration of Solvency: A signed declaration by all directors confirming that there are no objections or claims for debt against the company.
- Confirmation from Auditors: Confirmation from Auditors or appointed liquidators confirming no objection or debt claims against the company de-registering have been received or are unresolved.
- Advertisement: Publishing a notice in two local daily newspapers—English & Arabic—pertaining to the de-registration of the Company, providing a 14-day notice period.
- Return of Original Documents: Return all the original documents such as the Certificate of Incorporation, Memorandum of Association & Articles of Association, License, and Lease Agreement.
- Clearances: Obtain all clearances of the various departments, including the Finance Department, Leasing Department, Visa Services, and Abu Dhabi Customs.
2. Submission of Formal Application:
A formal application for deregistration of the company is to be provided with the cancellation of the trade license in either the Abu Dhabi Free Zone or ADDED, whichever is applicable. Please ensure that this application will be submitted along with all the documents and clearances that may be required by the checklist prepared by the concerned authority.
3. De-registration Certificate:
Once you have submitted your request, the relevant authority will review your application and grant you the de-registration certificate. In case additional information is required, they will ask for it prior to the cancellation.
4. Firm Card and Visas Cancellation:
All the visas sponsored by the company need to be cancelled at the General Directorate of Residency & Foreigners Affairs. Further, the firm card is also required to be canceled at the Ministry of Human Resources and Emiratisation. The business must ensure that all foreign partners’ visas are also canceled.
5. Acquire Necessary Approvals:
Obtain clearances from the relevant governmental departments to cancel the license, including the Ministry of Human Resources and Emiratisation, the Directorate of Residency and Foreigners Affairs, as well as the local water and electricity authority.
6. Finalize the Procedure:
Once you have obtained all the approvals, you are required to submit your final documents to the relevant authority. Confirmations will be given, and your business shall be considered closed.
Why Choose FAR Consulting Middle East for Trade License Cancellation?
FAR Consulting Middle East offers a range of services including trade license cancellation in Abu Dhabi. A well-versed team operating under a series of legal and regulatory requirements facilitates the process without any glitches.
Our Services
- Professional Guidance: We facilitate step-by-step assistance right from the commencement of the cancellation process by ensuring due completion of all formalities.
- Document Preparation: We assist in drafting necessary documents, such as shareholders’ resolutions, manager’s undertakings, and solvency declarations.
- Government Coordination: We will handle all the communication with government authorities so that your application gets processed without delays.
- Legal Compliance: We make sure your business is in compliance with all the local laws and regulations to keep you out of fines and penalties.
Why Choose Us?
- Local Expertise: We have years of experience in the UAE and offer deep insight into the UAE business environment as well as regulatory requirements.
- Personalized Service: We strive to make our services work for you. From personalized service to the cancellation of trade licenses, we pay individual attention to everything.
- Reliable Support: Along every step of the way, our dedicated team is there to help guide and support you through the process.
Conclusion
Many businesses may find business closure in Abu Dhabi a quite difficult process; however, the right advice and assistance will help achieve your objectives. By following the proper process outlined here, along with the engagement of Farahat & Co. to assist in the cancellation of your trade license, you can rest assured that the closure of the business enterprise is compliant and smooth.
Does your company need a trade license cancellation in Abu Dhabi? FAR Consulting Middle East offers professional support to go through a fully compliant closure of your business. Let the complexity rest on our shoulders while you plan the next move.