Are you through some financial cricis? Is the business not interesting you anymore? Are the place and environment not making you happy?These are the signs that you are looking for business license cancellation.
Trade license cancellation in Dubai is as easy as acquiring one. For business, a trade license is a crucial document for establishment. And, as per the regulation, during company liquidation, the license needs to be cancelled.
When or Why You Need to Close a Company?
Reasons for trade license cancellation in Dubai can be
- Bankruptcy or liquidation of the company
- Stakeholders step back and decide to shut down the company
How to Close the LLC Company in Dubai?
Here is how the process of cancellation and closing down of the company begins
- Company needs to pass a resolution for its dissolution
- Liquidator is appointed
- One of the resolutions mentioned above is to be notarized
- Legal documents need to be submitted to the Department of Economic Development (DED)
- List of documents includes – Trade License, MOA, Shareholder’s passport, etc.
Once the liquidation certificate is received, the next steps towards LLC trade license cancellation are that your company requires to get printed two advertisements in the newspaper in the Arabic language. Now the company provides a notice period of 45 days.
In these 45 days, the company requires to get clearance from the government authorities. The authorities include ministry undertaking cancellation, banks, immigration department, water and electricity department. This saves you from fines or penalties if any. Also, once the relevant authorities know about the company closer, there won’t be a further accumulation of fines. And after the notice period is completed, the company needs to submit the liquidation report and newspaper ads to the Department of Economic Development. In case of a shareholding company, there needs to be a clearance of liabilities towards other partners. You can save all your shares and get interested or company accordingly.
Also, if you are not confirmed on license cancellation, you can go for freezing of trade license. Here, the license can freeze for a period of one to three years. During this period, the company is stopped from performing any activity. But the clause attached clearly states that there should not be any employees, and no legal complaint is filed against it.
This cancellation does not mean you cannot open a business, and it is just that you cannot re-open the license. Business Link UAE suggests you make use of your good reputation and follow these steps to close a business in the UAE. We help you through the cancellation process by arranging company board resolutions, formulate legal documents for LLC, take care of the application, help find and hire liquidator, and more till you receive final cancellation letter.