Freezing of Trade License for Up to 3 Years!
Freezing a trade license means temporarily suspending your license or temporarily closing your business for a short period, typically not exceeding 3 years.
Businesses may face challenges when the company is established. Some may struggle with declining stocks, reduced profits, and employee losses. The question is, how can you start again? Were you able to overcome the hardships of running your company, or did you have no choice but to shut down?
Fortunately, the Dubai Department of Economy and Tourism DET implemented a temporary solution that could be beneficial to you. Before considering liquidating your license, you have the alternative option of freezing it. This can be a valuable strategy to save your company.
What is Freezing of Trade Licenses?
Freezing of the trade license should be done after the expiry date of the license
Cancel all the issued employment visas under your company but the partner can remain
You are not allowed to operate your business
The office will be closed and not allowed to run, even just selling your items/services online
If the DET finds 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 the Department of Economy and Tourism. These fees are valid for 3 years
Failure to renew your license after the 3 years validity of the freezing trades license will result in fines that will automatically occur
200 AED fines per month
Benefits of Freezing Trade License?
An alternative way to save your company from liquidating or shutting down your business.
Avoid paying renewal fees and accumulating fines.
To slowly recover from what happened to your company.
Instead of shutting down your company and setting up a new business in the future, it is far better to save money from expenses.
The owner or partners of the said unfreeze license are applicable to set up a new business under his/her name.
Once you freeze the trade license, you can unfreeze it immediately, even just applying it in just a minute. In short, you can unfreeze it at any time.
Requirements for Freezing Trade 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
Why is it Important to Seek the Help of Experts to Process Freezing of Trade License?
Getting the right process is important, one-missed requirements, approvals, or maybe misunderstood information can result in a double expense or delay to 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.
