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This is the process of cancellation of a trade license in UAE in the unlikely event of a business closure. In order to avoid penalties for non-renewal of a license, it is mandatory to follow a series of procedures to wind up a business legally, which can be quite grueling at ones difficult times. We can take care of this hassle with minimum interference needed from the customer, meanwhile ensuring a clean finishing. We understand the importance of settling dues and profits among creditors and partners, from the perspective of keeping your goodwill and business reputation; we foresee the possibility of restarting your venture sometime in the near future.
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The cancelation procedures varies based on business forms; the sole proprietorships and establishments, being the simplest. All you need to do is apply for cancellation through DED by submitting the below documents:
[/investment_title][vc_row_inner][vc_column_inner width=”1/2″][investment_list_item style=”normal” title=”NOC from Directorate of Residency and Foreigners Affairs”][investment_list_item style=”normal” title=”NOC from Ministry of Human Resources and Emiratization”][/vc_column_inner][vc_column_inner width=”1/2″][investment_list_item style=”normal” title=”NOC from Local Services Agent”][investment_list_item style=”normal” title=”Letter stating the reason for Company Liquidation”][/vc_column_inner][/vc_row_inner][vc_column_text]For companies with shares, the steps are more because it requires liquidating the shares, collecting the debts and paying off the creditors before finalizing with DED. If your company is one of the below mentioned, you need to appoint a liquidator:[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][investment_list_item style=”normal” title=”General Partnership”][investment_list_item style=”normal” title=”Simple Limited Partnership”][investment_list_item style=”normal” title=”Limited Liability Company”][/vc_column_inner][vc_column_inner width=”1/2″][investment_list_item style=”normal” title=”Private Joint Stock Company”][investment_list_item style=”normal” title=”Public Joint Stock Company”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height=”20px”][/vc_column][/vc_row][vc_row][vc_column][vc_tta_tour][vc_tta_section title=”Stage 1″ tab_id=”1563536382802-a0a90766-a085″][investment_list_item style=”normal” title=”Prepare a notarized minute of the general assembly stating the company liquidation and the appointment of an auditor for the Liquidation.”][investment_list_item style=”normal” title=”Submit all the Company Documents and Details of the appointed auditor to the DED (Dubai Economic Department).”][investment_list_item style=”normal” title=”DED issues a liquidation certificate”][investment_list_item style=”normal” title=”Publish the notice of liquidation in local newspapers (Both in English and Arabic) for 45 days.”][investment_list_item style=”normal” title=”From the date of issue, the notice gives the debtors a grace period of 45 days to submit their claims”][/vc_tta_section][vc_tta_section title=”Stage 2″ tab_id=”1563536382820-799cd800-d9b9″][investment_list_item style=”normal” title=”Cancel all the employment/Partner Visa under the Company.”][investment_list_item style=”normal” title=”Cancel labour and Immigration files of the Company and obtain NOC from both the departments.”][investment_list_item style=”normal” title=”Obtain an NOC from the Local Partner”][investment_list_item style=”normal” title=”Prepare a letter stating the reason for Company Liquidation.”][investment_list_item style=”normal” title=”Prepare the audit report of the Company.”][investment_list_item style=”normal” title=”Obtain NOC from all the external departments (If required).”][investment_list_item style=”normal” title=”Submit all the aforementioned documents to the DED to get the approval for final cancellation”][investment_list_item style=”normal” title=”After paying the requested fees, you can receive the certificate of deregistration (cancellation)”][/vc_tta_section][/vc_tta_tour][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][investment_title align=”left” tag=”h4″ title=”Freezing a trade license” add_underline=”yes” style=”underline_small”]Freezing is different than terminating a business license completely. In UAE, companies have an option to keep their trade licenses inactive for up to three years by paying a certain freezing fee. For this you need to submit:[/investment_title][investment_list_item style=”normal” title=”NOC from Ministry of Human Resources & Emiratization and Directorate of Residency and Foreigners Affairs”][investment_list_item style=”normal” title=”Letter stating the reason for freezing”][vc_column_text]Once the trade license is Freezed you can retain the License at any time. According to UAE Labor Law, employers need to give their employees a two-month, paid notice period before terminating their contracts. In most of the cases, employees can retain their residency visas until the company’s trade license runs out. In addition to this, the company needs to cancel its utilities and telecommunication services. Afterward, collect an NOC from the utilities service provider for the closing process. Prime Global Business Services will guide you through the entire process and help you understand the pros and cons in each stage of company liquidation. We invest our time to listen to what our clients say. Get in touch with us for a free expert advice![/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
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