Freezing of License

COVID-19 has crossed all borders in a very short period of time. This outbreak has changed the world economy and resulted in a million individuals losing their jobs and totally affected a lot of business industries. We ain’t don’t know when this pandemic stops but we have to move forward in order for us to survive.

In business industries, it is hard to recover from all the damages that have happened; from the stocks, products, profit, and losing the employees. The question is how to start again. Were you able to save your hardships from establishing your company? or you don’t have any other choice but to shut down your company?

The truth is, the Dubai of Economic Development implemented a rule and came up with a temporary solution that could be a great help to you! Going through, before deciding to finally come up to liquidate your license, you have an alternative way, a better choice in order for you to save your company.

This is what you called Freezing your license.

Important Matter

1. What is freezing of license?

   • Freezing of license should be done after the expiry date of license
   • Cancel all the issued employment visa under your company but the partner can remain
   • You are not allowed to operate your business
   • The office will be close and not allowed to run even just selling your items/services online
   • If the DED find out that you are operating any kind of activities while on license freeze, fines will be imposed as per the regulation
   • You have to pay AED 2,020 to apply for the freezing license at Dubai Economic Development. And these fees are valid until 3 years
   • Failure to renew your license after the 3 years validity of the freezing license, fines will automatically occur
   • 200aed fines per month
   • The license will be automatically canceled if not renewed over 5 years

2. Factors that you have to consider before freezing your license:

   • Zero Employees List- Labour
   • Zero Employees List- Immigration
   • No File Certificate
   • Clearance letter from DEWA/FEWA/SEWA/ADDC
   • Clearance letter from Etisalat/DU
   • Clearance letter from the Customs
   • Bank account closure and bank no liability certificate

3. What are the benefits of freezing the license?

   • An alternative way to save your company from liquidating or totally shutting down your business
   • Avoid paying renewal fees and accumulating fines
   • To slowly recover from the Covid outbreak that has totally affected every business industry
   • Instead of shutting down your company and set up a new business in the future, this is a far way better to save money from the expenses
   • The owner or partners of the said unfreeze license is applicable to set up a new business under his/her name
   • Once you freeze the license, you can unfreeze it immediately even just applying it in just a minute. In short, you can unfreeze it at any time.

4. What are the requirements for freezing the license?

   • Trade license Copy
   • Cancel all the issued employment visas under the company
   • Letter from the company requesting the temporary freezing of the license
   • NOC Letter to Ministry of Human Resources and Emiratization indicating that there are no left visas under the company aside from the partners

5. Why it is important to seek the help of experts to process this freezing of license?

   Getting the right process is really important, one-missed requirements, and approvals or maybe a misunderstood information can result in a double expense or delay to all the process. You need to make sure to fulfill all the relevant regulatory requirements and undertake the right procedure.

   Therefore, you have to rely on and ask the advice of the team of experts, make sure to let them handle this on your behalf since they’ve done this for a long time.

Here are related links to this article for your reference:

• Dubai Mainland License Business Setup
• Steps for Your Business Setups in Dubai
• Payment Voucher Reduction
• Amendment of License
• Trade License Liquidation/Cancelation