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Trade License Cancellation in Dubai

trade license cancellation in dubai

If any business registered in the UAE, wishes to cancel their License and liquidate the company, they have to receive the cancellation certificate from the relevant authority. In case of Non-Renewal of License, the relevant authority will initiate the trade license cancellation and De-registration as per Licensing Regulations. Any entity that is established or going through the company liquidation process has to follow cancellation steps to get the legal work done regarding their licenses. The company liquidation procedure depends upon the type of the company.  In this article, we have streamlined some major licenses active in the UAE and how to Cancel Trade Licenses in Dubai


  • Trade license: This will cover all trading activities
  • Industrial license: For manufacturing and industrial working
  • Service license: doctors and lawyers

Trade License Cancellation Process in UAE

Trade License Cancellation Process in UAE  depends on the form of your company. For establishments and a sole proprietorship, the process is simple because all you need to do is to apply for cancellation through DED and acquire all relevant clearances from:

The company has to get clearance from relevant government authorities such as:

  • Approval from the ministry authorized the cancellation of the trade license
  • Closing of bank account
  • Approval from the immigration department
  • Approval from any water and electricity authority

You need to appoint a liquidator if the legal form of your company is one of these:

  • General Partnership
  • Limited Liability Company
  • Simple Limited Partnership
  • Public Joint Stock Company
  • Private Joint Stock Company

How to Cancel Trade License in Dubai?

  • Stage 1 – Drafting of resolution: Prepare the board of resolutions to appoint the liquidator for the license cancellation, also prepare the cancellation contract in the notary public
  • Stage 2 – Application for cancellation of trade license: as the first stage, the required person has to draft an application for cancellation of trade license.
  • Stage 3 – Cancellation: Cancellation of all the employment visas under the trade license and get the necessary approvals.
  • Stage 4 – Publication: The liquidation advertisement is to be published in two local newspapers. Confirmation of the Liquidator and Partners that there is no objection from the third party during the publication period.
  • Stage 5 – Clearance: The visa and company-established card will be canceled, and the owner will receive clearance from relevant authorities.

Also read: Steps To Renew a Trade License in UAE

Trade License Cancellation Cost in Dubai

License Cancellation CostAED 1,020
Company Dissolution CostAED 2,520


In Dubai, company liquidation involves certain financial obligations. The process incurs two primary fees. Firstly, there’s the license cancellation fee, amounting to AED 1,020, covering administrative expenses and processing. Secondly, there’s the company dissolution fee, totaling AED 2,520, encompassing the formal dissolution procedures and documentation.

These costs are integral considerations for businesses navigating the regulatory landscape of Dubai, ensuring a smooth and compliant closure of operations when necessary.

Conditions for Trade License Cancellation in UAE

It is very important to get clearance from the government authorities. This may avoid fines or penalties on your license when it is not renewed upon its expiry.

Relevant government entities need to know that you are no longer in the business, so you will avoid any accumulated fines and penalties incurred upon your license when it is not renewed upon the expiry date.

If you are in a shareholding company, it is important to discharge your liabilities towards creditors and partners and protect your interests and shares.

It is also wise to put your goodwill and business reputation in perspective if you decide to open a business again.

Also read: A Guide for Entrepreneurs in Getting a Trade License in UAE

Freeze Trade License

Dubai has launched a facility that may allow freezing the license for a limited period (can be from one year to three years). During this period, companies’ trade licenses can be frozen (stop all company activities). This is possible only when there are no more employees in the company and no legal action against the company at present. But Creditors still can claim against the frozen company.

Closing a Business in the Free zones of Dubai

There are three types of closures for Free zone companies

  • Summary Winding up when a company has no liabilities or can settle the liabilities within 6 months and commence with a statement of solvency
  • Creditor winding up the Company passes a resolution for winding up which is followed by a meeting with the company’s creditors
  • Bankruptcy- Done by the Court under the UAE Commercial Transaction Law No.18 of 1993.

The process of cancellation or deactivation of trade licenses in Dubai is different for different types of companies. License deactivation for a civil company or sole establishment is relatively easier compared to the license of an LLC (limited liability company). It is important to note that it takes around 40 to 60 days to cancel a trade license in the DED (Dubai Economic Department). It is better to hire a specialized agency that would do the process for you and save you the hassle. Experts can provide easy cancellation services for all types of documents whether it’s trade licenses or visas, for more information contact our experts.

The whole process for cancellation of trade licenses in Dubai can be simple if you seek the help of a expert in the UAE. FAR Consulting Middle East and company specializes in dealing with different liquidation processes including the cancellation of trade licenses in Dubai. For quality, consultation, contact us now.