Cancellation of License and Company Liquidation in UAE
Trade license is the most essential document for a company to build and run in the UAE. The business requires to execute the trade license cancellation in Dubai if they plan to close the business for any reason.
For the cancellation of a trade license in Dubai, you require to submit certain documents and receive various authorizations from the government offices.
Notice Period for Liquidation
A notice period is an extent wherein the basic duties could be done within a short span. For a business substance who requires liquidation, it requires to keep in mind that some essentials are to be implemented for both the business as well as the workers. Verify the needed activities before you move towards the liquidation method.
It is not a concern that what kinds of license you hold here in UAE but you need to remove the trade license if you chose to terminate the business. If the business license is not renewed after the expiry date, there will be a penalty and fines on your trade license from the government officials. You will have the one month grace period once the trade license has been expired. Throughout these grace days, the organization can determine whether will go to the renewal or cancellation of trade license. As it is a lengthy method, it might necessitate a least of 40 to 60 working period for trade license cancellation in the financial department.
The mode of the trade license cancellation in Dubai relies upon the nature of the business. Single business or civil business cancellation is more apparent than the limited liability license cancellation. One of the major things you need to keep in mind that before rushing to the cancellation process, the business has to get some authorization from the related government department like
Ministry of the labor department
Water and Electricity department in UAE
Bank account closing
Office tenancy termination
How to cancel your trade license in UAE
The process of trade license cancellation includes two steps:
- Arrange notarized minutes of the general assembly approving the business liquidation and the arrangement of a liquidator.
- Generate an official letter by a certified liquidator affirming the duty.
- Apply for cancellation by filling the details in the required form via DED or specific Freezone or other authorized channels.
- The authority will provide a company liquidation certificate.
- Declare the notification of company liquidation in two regional journals/newspaper by placing advertisements .
- The declaration provides the borrowers a grace time of 45 days from the day of circulation to submit their applications.
- Tender to DED or Free zone authority a statement letter from the liquidator and the associates showing no objection from any other parties throughout the grace interval.
- Obtain the needed permissions of other government parties to cancel a license.
- Cancel the registration at the Ministry of Human Resources and Emiratisation.
- Cancel the visas of partners' and employees sponsored by the business at the particular General Directorate of Residency & Foreigners Affairs
- Tender all the foregoing records to procure the approval for conclusive cancellation.
- Pay the charges.
The respective department will issue the refund receipt for the license cancellation. As soon as you pay the amount they will give you the license cancellation certificate.
Documents Required for Liquidation Process in UAE
- License Copy
- Copy of Memorandum of Association (MOA) with complete alterations.
- Power of Attorney (if you have any)
- Resolution of Shareholder
- Emirates ID (EID) and Passport of Shareholders
- Filled Application Form for trade cancellation
As per the UAE Government practices, a notification day is provided to the business substance where they can accomplish the processes needed for successfully covering up the industry.
Intuit Management Consultancy (IMC Group) helps the companies in the finalization of the liquidation report and support the industry in all the judicial and assent formalities to be accomplished to execute the trade license cancellation in Dubai. We arrange for all the government clearance certificates for free zone companies in Dubai and also help with labor and immigration clearance documents. For several years we have supported in liquidating numerous companies. They will be happy to help you throughout the company liquidation, at a price-effective approach.