If you are deciding to shut down your business in Dubai, you must cancel the concerned trade license in Dubai. This process will completely depend upon the type of license you have taken during setting up a business in Dubai. Trade license approved authorities will issue a fine on your license if your renewal date expires. Your trade license cancellation process may take 50 to 60 working days and its length one. You can choose this grace period, to renew or cancellation of trade license.
There are mainly 2 types of cancellation methods, civil company cancellation, and limited liability license cancellation. Your auditor will check if your company is limited liability for deregistering. Labour department, bank accounts, immigration, and office tenancy termination certificate and water electricity bills have to be cleared before going for cancellation of trade license Dubai.
If a company is about to shut down, paying financial compensation for its workers, employees' visa, and work permits cancellation is an integral part of the closing process. You have to go in hand with the Department of Naturalization and Residency and the ministry of the labor department. Employees must be informed some months before terminating the company.
Process of LLC trade license cancellation in Dubai
Initially, there are 2 stages of cancellation of trade license in Dubai, First of all, you have to cancel all existing employees and their visa and apply for company license cancellation.
- Draft the trade cancellation application and get a clearance certificate from the ministry of the labor department.
- Cancel all employment visas and work permits.
- Prepare the board of solutions and prepare cancellation contract in the public notary.
- Publish the ads in at least 2 local newspapers prior to 45 days and suppliers can submit their claims within these 45 days.
- The reason for the cancellation of the license must be clearly explained in the newspaper.
- Employees' visa cancellation applications should be submitted by the concerned authorities.
- The immigration department issues a clearance form and cancels the company establishment card.
- Get the clearance from DEWA, Etisalat and customs Dubai.
Once you have to get approval from concerned authorities in the economic department, they will issue a payment slip for license cancellation. cancellation of DED license in Dubai deals with the department of economic development for foreign and local investors. The limited period of freezing the license is from 1 to 3 years. The company should stop all its trade activities during this time period and not legal to take any new contracts. Creditors joined during business set up in Dubai still have the option of claiming against the frozen company.
Trade cancellation of free zone companies
- summary winding-up process where there are no liabilities or able to settle liabilities within a notice period.
- Creditor winding-up process when company is winding up and followed by creditors company meetup
- The bankruptcy did by the court under the UAE Commercial Transaction.