Unfreeze commercial trade license in Dubai – Let’s discuss Running a business in Dubai comes with a lot of opportunities, but sometimes life throws curveballs that force you to hit the pause button – the reason can be the decline of market conditions or financial situations. That’s where freezing your Dubai trade license comes as a lifeline. Using this option, you can temporarily halt your business operations without losing what you’ve built so far. But now, the question is, what happens when I am back on the track and how to unfreeze commercial trade license in Dubai? The answer is simple – You can unfreeze or reactivate your trade license within 3 years of suspension.
Unfreezing your commercial trade license might seem daunting, but with professional guidance you can make it simple. In this guide, the consultants who specialize in business setup in Dubai has come with a simple guide to unfreeze a trade license in Dubai.
What is Freezing Trade License in Dubai?
Freezing a trade license means that the license is temporarily suspended or deactivated for up to three years, avoiding full cancellation. This is the smart move for preserving your trade name and company history without the hassle of starting from scratch later. During this freezing period,
You cannot conduct any business activities legally.
Your bank accounts will be inactive.
No penalty will be incurred for trade license renewal.
Your company may be restricted from signing contracts or issuing invoices.
Employees’ visas under the company may be affected.
Don’t miss to file the VAT and corporate tax even during the freezing period.
Read more about Trade License Freezing
What is a Unfreeze Commercial Trade License in Dubai?
Unfreeze commercial trade license in Dubai is the process of reactivating a business license that has been frozen by your request. As mentioned above, when a trade license is frozen, the company cannot legally conduct business activities, or sponsor employees. And in this case, unfreezing the license regains its active status and allows the business to resume its operations legally.
Documents Required for Unfreezing a Trade License
- License unfreezing application form.
- Ejari or Tenancy contract of the new business location.
- External approvals or no objection from the government authorities organizing the activity/activities.
- A NOC indicating the activation request from the shareholders (if any).
Steps to Unfreeze Commercial Trade License in Dubai?
Once you feel that you are all set to start your business operation, you need to submit your request to DED to revoke the freeze on your trade license. At Dahhan Business Services, we handle all the paperwork on your behalf and submit the unfreezing request to get your business back on track.
Key Tips for Business Owners to Keep Your Trade License Active
- Maintain good financial records to meet the operational costs.
- Work with a professional PRO Services in Dubai or a business consultant to handle administrative tasks.
- Keep an eye on the DED account for notifications or alerts.
- Stay informed about new regulations or changes in the UAE business law.
Contact Dahhan Business Services,
Freezing a trade license in Dubai provides businesses with temporary relief during challenging times, enabling them to halt operations without shutting down permanently. It’s important to remember that this is a temporary measure, and businesses must reactive before the freeze period expires.
Looking for expert guidance on unfreeze comemrcial trade license? Get in touch with us today for professional support. With years of experience and expertise, Dahhan Business Services, a business setup in Dubai, is here to assist you professionally in all aspects of business services.
Frequently Asked Questions (FAQs)
How long can a trade license be frozen in Dubai?
A trade license can typically be frozen for up to three years. During this period, the company is not required to pay certain fees, but the business cannot conduct operations until the license is unfrozen. Get help from Dahhan Business Service to freeze your trade license in Dubai.
Can a frozen trade license affect ongoing contracts or bank accounts?
Yes, a frozen license may temporarily limit the company’s ability to sign new contracts, issue invoices, or operate bank accounts. Existing agreements should be reviewed to avoid violations, and banks should be informed about the freeze. Discuss with Dahhan Business Services to know how to unfreeze your trade license.
How do I unfreeze my trade license after freezing it due to financial constraints?
To unfreeze a license, you need to submit a request to the Department of Economic Development (DED). Discuss with Dahhan Business Services, as we will help you to unfreeze your trade license in no time.
Is freezing a trade license a permanent solution?
No, freezing is a temporary solution. It gives businesses time to manage challenges without closing permanently. To get free consultation on business support services, contact Dahhan Business Services.
Can a commercial trade license be frozen multiple times?
No, a commercial trade license can usually be frozen only once, and each freeze period is limited to the DED’s maximum allowed duration (up to 3 years per freeze) and it varies depending upon the jurisdiction. Kindly check with Dahhan Business for more info.
