For whatever reason that you deem it possible for your LLC to halt its operations in the UAE, it is imperative that you cancel all your permits and licenses that pertain to the business.
According to articles 306 and 326 of the UAE’s federal law No.2 of 2015, the closure of your business can be facilitated by some of the following reasons; completion of your business mission in the UAE, the duration of the business has expired, or due to bankruptcy, the company has lost almost every asset it owned.
So, once you and all shareholders decide to end operations, it is crucial that you notify government authorities to facilitate the cancellation of the license. This cancellation will help avoid fines and penalties that might accrue when the government assumes you are in business. So, how do you go about the cancellation? Below we have enlisted the procedures you must follow.
Steps to follow for Trade license cancellation
Canceling an LLC license is a two-stage affair, and let’s see how to go about it.
Stage 1
- Ensure you prepare notarized minutes of the general assembly to pass on the company liquidation motion and appoint a liquidator.
- Get confirmation from the liquidator as an official letter that they have accepted the role.
- Apply for cancellation through the Department of Economic Development (DED) form or any other means available from the department.
- The issuance of a cancellation certificate from DED.
- Publish the notice in two local most widely read newspapers in UAE, one copy in English and the other in Arabic.
- Give debtors a 45 day grace period to provide claims, if any.
Stage 2
- Submit to the DED a letter from the liquidator and shareholders that no objections have been met from the public.
- Get clearance from all other government bodies, including immigration, water, electricity and banking.
- Get cancellation of the firm card from the ministry of Human Resources and Emiratization.
- Cancel all foreigner partners’ Visa sponsorships by the firm at the individuals General Directorate of Residency and Foreign Affairs.
- Submit all the documents prepared for the final cancellation.
- Receive a fees quotation from DED.
- Receive the certificate after paying the cancellation fees.
Documents needed through the process
- Copy of the license
- Emirates ID
- Resolution of the shareholders
- Power of attorney
- Shareholders’ passports
- Filled application form from DED
Trade license cancellation is a step that you need to be sure about when you decide to do so. Having the right person to guide you through it is crucial to avoid such instances of fines and penalties, and we are here to help you through the process. After receiving the final certificate, the LLC will be legally dissolved, and no more legal duties will be necessary.
