Businesses in Dubai sometimes open, grow, and they change. However, sometimes companies may close due to several reasons. When the business faces closure, the trade license needs to be canceled. To cancel the trade license, one must submit all the necessary paperwork to the respective authority.
Moreover, canceling the trade license is a little tricky and overloaded. To overcome that, you can seek assistance from professional experts.
Why Cancelling the License is a Requirement upon Business Closure?
As a business owner, you must understand the importance of canceling your trade license. In simple terms, the respective government entities need to know that you are no longer available in the business.
When it expires without being renewed, you will avoid paying any fines and penalties that are assessed against your license.
Also, get additional knowledge about Dubai's various types of trade licenses.
Conditions for DED Trade License Cancellation
When you operate a business in Dubai and require a trade license, you first consider whether you need to cancel it.
And, if yes, where and how do you file the cancellation application for a trade license?
The primary question is – what formalities need to be appropriately followed while canceling a trade license?
To get a relevant answer, scroll down the blog.
Drafting of Resolution
The first step is to prepare the board of resolutions for the license cancellation and the cancellation contract with the notary public.
Application for Cancellation of Trade License
After completing the first stage, the respective person has to draft an application for trade license cancellation.
Cancellation of Employment visa
The third step is to undergo the process of cancellation of all the employment visas under the trade license and obtain the necessary approvals from the respective authority.
Note: If the cancellation is made on the mainland, one needs to get permission from the Department of Economic Development. Meanwhile, you should get approval from the free zone authority if it is in the free zone.
After the cancellation of the visas, the next step to proceed is to get a liquidation advertisement published in two local newspapers.
Meanwhile, a joint statement from the liquidator and partners mentioned that no objection from a third party had been filed during the publishing period.
The final process is the clearance of the visa. After doing so, the company-established card will be canceled, and the owner will receive clearance from the relevant authorities.
Documents Required for Cancelling Trade License Dubai
As a business owner, you must ensure that your Dubai business is up to date. This includes signing off on all trade licenses and permits required by law. Trade license cancellation in Dubai could be challenging for some, especially if you need clarification on the necessary documents for this action.
- Passport copy
- Trade license copy
- Cancellation of visa copy
- Newspaper copies
The content above illustrates how to cancel a trade in Dubai. In addition, if you want to make the entire process smooth and trouble-free, you can seek assistance from our professional experts. Additionally, if you want to learn about the renewal, then learn how to renew a trade license in Dubai.
Why Choose Us
Business Setup Worldwide helps its clients by providing a smooth incorporation process. We not only deal with the cancellation of trade licenses but also offer various additional services. We are a team of qualified experts to help sharpen your business future. Contact us if you want to explore the business journey more.
How much does trade license cancellation cost in Dubai?
The Dubai trade license cancellation fees start from AED 14,000.
How many days does it take for trade license cancellation in Dubai?
It takes around four months to cancel a trade license in Dubai.
Who issues trade licenses in Dubai?
The Department of Economic Development issues trade licenses in Dubai.