UAE Trade License Cancellation Requirements
Cost, Time, and Process
Trade license cancellation in the UAE is a formal process that must be completed when a business closes. It ensures the company is removed from official records to avoid fines. Failing to cancel properly may lead to legal consequences. The process differs slightly between mainland and free zone companies. Understanding the right steps and documents helps avoid unnecessary delays.
What is UAE Trade License Cancellation?
UAE trade license cancellation refers to the official procedure of closing a business and removing its name from the economic department’s registry. This is a legal requirement for all companies that are no longer operating.
Why is Trade License Cancellation Important?
It prevents future fines, visa liabilities, and renewal fees. If a business is inactive but not cancelled, it remains liable for annual penalties and taxes.
Types of Trade License Cancellation in UAE
There are two main types of cancellation: full cancellation (when the company is closed permanently) and partial cancellation (when a branch or activity is removed while the rest continues to operate).
Trade License Cancellation Process for Mainland Companies
First, clear all dues with relevant government entities. Next, get clearance from the Ministry of Human Resources and Emiratisation and cancel any visas. Finally, submit cancellation forms to the DED and publish a cancellation notice in newspaper.
Trade License Cancellation in Free Zones
Free zones have separate authorities like DMCC, JAFZA, or DAFZA. Submit a cancellation application to the free zone authority, return original documents, cancel visas, and obtain clearance certificates to complete the process.
Required Documents for Trade License Cancellation
You’ll need the original trade license, Emirates ID, passport copies of shareholders, clearance certificates from utility services, and immigration and labour departments.
Trade License Cancellation Fees in UAE
Fees vary depending on the business structure and location. Generally, mainland cancellation fees range between AED 2,000 to AED 5,000, while free zones have their own fee structures.
Penalties for Not Cancelling a Trade License
If you don’t cancel your trade license, you may incur heavy fines, legal liabilities, and be blacklisted from future business activities in the UAE.
FAQs
It usually takes between 1 to 4 weeks depending on the business type and location.
Yes, many authorities offer online platforms to apply for license cancellation.
For mainland companies, yes. You must publish a cancellation notice in a local newspaper.