Dubai is a fast-growing city. It offers numerous opportunities for businesses to thrive. Sometimes, companies may need to cancel their trade licenses for various reasons. If you are in the process of restructuring, relocating, or even shutting down your business, it is essential to understand the steps involved in canceling your trade license in Dubai.
This is the reason why this guide is carefully structured to provide you with all the information you may need about trade license cancellation and how a Trade License Cancellation Consultants in Dubai can help make the process hassle-free.
What is Trade License Cancellation?
Trade license cancellation means withdrawing from commercial registration in Dubai. This may be the case if the companies are not functioning any more, have shut down their operations, or are about to make some drastic changes in their business strategies. To cancel a Trade license in Dubai means that the legal status of the company as a “company” in the emirate is also canceled. It is important to know that cancellation may differ in its procedure based on the type of company and the reason for cancellation.
When is Trade License Cancellation Necessary?
Sometimes companies may require trade license cancellation for the following reasons;
- Closure of Business: If a company chooses to cease its business in Dubai then the trade license of the company has to be cancelled. Such a situation may arise even if the company has closed down its operations for some time or is in the process of being wound up.
- Business Restructuring: A company may require that its trade license is canceled and a new one obtained under a different legal status or with a different legal owner. This may happen in case of merger or acquisition or in the course of corporate restructuring.
- Change in Business Activities: If the business of a company changes significantly then it may become undesirable to keep the same trade license. In such cases it may be necessary to cancel the old license and get a new one.
- Legal Requirements: There are instances where a company may be needed to cease its operations and hence, required to cancel its trade license. For instance, if a company does not conduct its business for the continuous period set by the law, the trade license may be cancelled automatically.
So, it is necessary for the companies to know that canceling a trade license in Dubai may have its legal and financial consequences. It is highly recommended that one should seek the services of a good company that offers company formation and license cancellation services in Dubai to ensure that the whole process is done in the right manner and within the shortest time possible.
Steps to Cancel a Trade License in Dubai
The trade license cancellation process in Dubai has certain well-defined steps that need to be followed. Following are the steps that need to be followed to cancel a trade license in Dubai:
| Phase | Step | Details |
| Phase 1 | Notarized minutes of the General Assembly meeting | Confirming the company liquidation and the appointment of a liquidator (whose name must be mentioned). |
| Liquidator’s acceptance letter | A letter issued by the liquidator accepting to liquidate the company along with their documents (copy of the licence, auditor registration certificate, a notarized signature specimen). | |
| Payment for certificate of dissolution | Payment of AED 520 for the certificate of the company’s dissolution and liquidator appointment, subject to the legal advisor’s approval. | |
| Announcement of liquidation | Announcement of liquidation in two Arabic local newspapers for one day only, allowing debtors 45 days to submit their claims. | |
| Phase 2 | Submission of original newspaper and final report | Submission of the original newspaper in which the announcement was published as well as the company’s final report. |
| Declaration letter from liquidator and partners | A declaration letter from the liquidator and the partners stating no objections were received from any other parties within 45 days from the date of the announcement. | |
| Cancellation of labour cards | Cancellation of labour cards through the Ministry of Human Resources & Emiratisation. | |
| Copy of minutes and certificate of dissolution | A copy of the minutes of the General Assembly meeting and a copy of the certificate of dissolution. |
Note: It should however, be noted that the time it takes to cancel a business license may differ with the complexity of the company’s structure and operations.
Those companies that process their application and comply with the set regulations of the DED are usually able to have a smooth Trade License cancellation process.
Fees for Canceling Trade License in Dubai
These are the fees associated with canceling your trade license:
- License cancellation fee: AED 1,020
- Company dissolution fee: AED 2,520
How to Check Trade License Online in Dubai
It is quite easy to check the status of a trade license online in Dubai, but this may require one to go through certain procedures and websites. In this regard, here’s what one needs to know:
- Official Platforms: You can start the process by going to the official websites like the Department of Economic Development (DED) e-Services or other related websites.
- Dubai Trade License Online Search: Look for options to search for license information using either the license number or the business name.
- Verification Process: Proceed to click on the link provided on the website and provide the required information to check on the status of the license.
When looking for a more specific, comprehensive guide, or when needing help with the process of UAE trade license check, it is always advisable to seek the services of experts. They are well versed with the UAE procedures and can help avoid common pitfalls.
The Role of Trade License Cancellation Consultants in Dubai
It is advisable to get advice from experienced Trade License Cancellation consultants in order to facilitate the trade license cancellation process in Dubai.
Here’s how they can assist:
- Legal Compliance: This means that the process is properly administered to avoid legal problems and delays that may arise in the process.
- Time Management: They ensure that time limits are well met thus ensuring that the cancellation of the trade license is done without delays.
- Cost Optimization: This is because the consultants ensure that all the fines and duties are paid on time so as to avoid being fined and they also offer the best suggestions.
- Smooth Transition: They help with business changes or expansions or new businesses that one may wish to engage in after cancellation.
- Support During Cancellation: The presence of consultants is beneficial as they guide and support the company throughout the process thus realizing success.
- Help in obtaining a Trade License in Dubai: we also offer our advice on how to get a trade license in Dubai in case you wish to re-establish your business later.
It is therefore possible for businesses to be able to navigate through the trade license cancellation process easily with the help of Trade License Cancellation Consultants experts.
Why Choose FAR Consulting Middle East. as a Trade License Cancellation Consultant in Dubai?
With years of experience in the UAE, FAR Consulting Middle East. has been providing its clients with the necessary advice and assistance in the operation of business in the UAE especially in the aspect of trade license cancellation.
We offer;
- Complete services to help businesses with company formation, license management, and trade license cancellation.
- Expertise in Dubai trade license check and its verification.
- Help with all kinds of trade licenses such as commercial trade license Dubai, service license Dubai and e-trade license Dubai.
Why get worried about all the paperwork and procedures when we can help you out with it? It is not necessary to get stressed up when canceling a trade license in Dubai. It is possible to make the process easier with the help of experts and proper tools.