It is a legal mandate for registered corporations in Dubai to obtain a cancellation certification from specified authorities in order to formally terminate a trade license. The circumstances for trade license cancellation vary and they include, bankruptcy or the decision of the shareholders to step back and shut down the business completely (liquidation). It is essential to avail the services of approved liquidators in the UAE to effectively execute trade license cancellation in full compliance with the set regulations and standards.
Terms for Dubai Economic Department Trade License Termination
Primarily, companies are compelled to obtain warrants from relevant government authorities.
- To evade probable imposition of sanctions and accrued penalties against a trade license, it is essential to inform the pertinent authorities prior to the expiry or cessation of the trade license.
- For businesses to conserve interests and allotments in a shareholding corporation, it is crucial to release obligations to allies and creditors.
- If a business deems to reinstate a trade license, it is advisable to maintain beneficence and professional status on viewpoint.
Read More : Procedure of Closing a Business in UAE
Steps in Terminating a Trade License for Dubai Economic Department
Dubai Economic Department Trade license cancellation is executed varying on a firm’s legal structure. Businesses have to submit a revocation application through DED and obtain the essential certifications. The business must obtain authorization from the appropriate government authorities before canceling a trade permit.
The following ought to be fulfilled:
- Bank account closure.
- Obtain clearance from immigration.
If a firm has one of the following legal forms, it is compelled to obtain the following approvals before choosing an approved liquidator in the UAE:
- Simple Partnership
- LLC (limited liability business)
- Public and private joint stock firms
- General limited partnership
Dubai Trade License Cancellation Procedures / Step Guide
- Essentially, the Corporation in mater has to prepare the panel of resolutions for the license revocation and craft the agreement of termination in the presence of an approved notary public.
- Drafting the application for the trade license cancellation, through approved persons.
- Execution of the Trade License Cancellation follows.
- After the aforementioned steps, News Publication sets forth. Two local newspapers will advertise the bankruptcy. This assures the liquidator and partners that no objections have been raised by any 3rd party throughout the publishing period.
- Lastly, Clearance is carried out.
Why is it Essential for Companies to Avail Expert Services of Approved Liquidators in the UAE?
Corporations in the UAE are obligated to adhere to the government’s regulations and standards upon executing Trade License Cancellation. When a trade license is completely terminated, the inscription of the specified industry will be removed from the register of companies in the UAE and at once, the business ceases to operate under an inscription as such. Companies obtain the surety of averting probable imposed charges and sanctions that could accrue as a result of the trade license not being renewed. It is highly crucial to outsource the services of an Approved Liquidator in UAE to preclude the procedural complexities of trade license termination. So, contact us today and we shall be happy to assist you!