Tips for Smooth Trade License Cancellation or Liquidation
Shutting down a business involves a series of steps. Thatโs why we are here for you with the Trade License Cancellation or Liquidation to reduce your worries.
Pandemic problems, lack of profits, no clients, shortage of funds, stiff competition, or other economic uncertaintiesโ no matter what the reasons for closing your company, it is so painful to think that all you have invested to maintain your business work turn into downfall waste.
Shutting down a business involves a series of steps. When you decide to take the painful decision, you may not be willing to go through the process aside from slowly killing your heart but also the fact that you will face a tremendous amount of paperwork. Thatโs why we are here for you to process everything to reduce your worries.
Facing theย processing of a visaย is very time-consuming and hectic. You will face a tremendous amount of paperwork. Thatโs why you should hire a team of experts, aย pro services companyย to process on your behalf to reduce your worries.
Trade License Cancellation
Before liquidating your license,
Donโt cancel the companyโs bank accountย until we refund all partner and employee bank guarantees, includingย DEWAย and landlord security deposits.
All employees and partners must also cancel their underโsponsorship visasย (e.g., housewife, children, housemaid) simultaneously with their visa cancellation.
Avoid canceling the company bank accountย until you receive the bank guarantee refund from Labor and Immigration.
Requirements for Trade License Cancelation in Dubai
Trade Licenseย Copy First & Second Page
All Partners passport copy, visa page, andย emirates IDย front and back
Local Partners passport copy and Emirates ID front and back
Ministry of Labourย Company Computer Card Copy
Immigration Establishment Card
Immigration online account (username and password)
Original RSA token
Original E-signature card of the authorized person in the Ministry of Labour
Original Company Stamp
Original Company Letter Head
Essential Documents and Processes for Trade License Cancellation
Liquidation Report:
This report provides a detailed account of the companyโs assets, liabilities, and the liquidation process. Itโs typically prepared by a liquidator or an authorized representative.
Zero Employees List (Labor and Immigration):
This document confirms that there are no employees currently associated with the company. Itโs required by both the Ministry of Labour and the General Directorate of Residency and Foreign Affairs (Immigration).
Partner Visa Cancellation:
If the company has sponsored partner visas, these must be canceled before the trade license can be terminated.
Cancellation of Establishment Card:
The establishment card, which the presence of the authorized person is needed during the cancellation.
No File Certificate:
This certificate indicates that there are no open files or pending cases associated with the company.
Dubai Court, Board of Resolution:
If the company is a limited liability company (LLC), a board resolution must be passed to approve the liquidation.
Initial Liquidation Certificate:
This certificate from DET, Department of Economy and Tourism marks the beginning of the liquidation process.
Newspaper Advertisement:
A notice about the companyโs liquidation must be published in a local newspaper.
Clearance Letters:
These letters from various government departments (DEWA, FEWA, SEWA, ADDC, Etisalat, DU, Customs) confirm that there are no outstanding dues or liabilities.
Bank Account Closure and No Liability Certificate:
The companyโs bank accounts should be closed, and a certificate from the bank confirming no outstanding liabilities is required.
Final Liquidation Certificate:
This certificate from DET signifies the completion of the liquidation process and the successful cancellation of the trade license.
Additional Information
Timeframe:ย
The duration of the cancellation process can vary depending on the complexity of the companyโs affairs and the efficiency of the government departments involved
Professional Assistance:
Itโs often advisable to seek professional guidance fromย pro services companyย like us to ensure compliance with all regulations and expedite the process.
Why should you hire us to cancel your trade license?
Shutting down a company is very a painful task. Plus, you may likely miss out on important aspects when closing your business. Itโs best to rely on an expert strike-off company service like us. In return fo a modest sum, we handle the process for you.
Frequently Asked Questions (FAQs)
If I freeze my trade license without cancelling the establishment card, will penalties still apply to the establishment card?
Yes. Once the grace period after the establishment cardโs expiry has passed, a penalty of AED 100 per month will apply.
What should I do if the establishment card has expired to avoid penalties?
It is advisable to cancel the establishment card if the license is frozen. You can apply for a new establishment card later when you decide to reactivate (unfreeze) the license.
