Trade License cancellation cost 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
Cancelling your Dubai trade license is a legal requirement when you decide to cease your business operations in the UAE. Failing to cancel your license properly can lead to penalties, fines, and renewal fees, even if your business is no longer active.
There are two main ways to cancel your license:
1️⃣ Instant License Cancellation:
For sole establishments with no employees and no liabilities.
2️⃣ Standard License Cancellation:
For LLCs, civil companies, or companies with employees and assets requiring clearance from government entities before cancellation.
For LLCs, prepare and notarize a board resolution confirming the decision to liquidate and cancel the trade license.
For LLCs, a registered liquidator must be appointed, and a liquidation certificate must be obtained.
Submit your cancellation request with the Department of Economy and Tourism (DET, formerly DED) in Dubai with initial approval documents.
Publish a liquidation notice in two local newspapers (one in Arabic and one in English) to announce the company closure, allowing creditors 45 days to raise claims.
You must obtain clearance certificates from:
Dubai Electricity and Water Authority (DEWA)
Etisalat / Du
Dubai Customs
Ministry of Human Resources and Emiratisation (MOHRE)
Immigration Department
Bank clearance for company accounts
After the 45-day period, submit:
Clearance certificates
Liquidator’s final report
Original trade license
Memorandum of Association
Passport copies of all shareholders
Pay the cancellation fee, and DED will issue the Trade License Cancellation Certificate to confirm your company closure.
| License Cancellation Cost | AED 1,020 |
| Company Dissolution Cost | AED 2,520 |
In Dubai, company liquidation involves certain financial obligations. The process incurs two primary fees. Firstly, the license cancellation fee, amounting to AED 1,020, covers 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.
Original trade license
Passport copies of shareholders
Board resolution (for LLCs)
Clearance letters from utilities, banks, and government departments
Liquidator’s report (for LLCs)
Advertisement copy from newspapers
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.
The process of trade cancellation 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 an 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.