LLC Trade License Cancellation

Cancelling an LLC Trade License in the UAE!

Whether you operate an LLC, a Partnership, or a Sole Proprietorship in the UAE, cancelling your LLC trade license and any related licenses is an important factor to consider when closing a company.

What Is the Importance of Cancelling an LLC Trade License in the UAE?

The cancellation of a trading license in the UAE can be due to bankruptcy or the shareholders' decision to evaluate and shut down the company (liquidation).

Furthermore, as per Federal Law No. 2 of 2015, articles 306 to 326, a business may be dissolved if its duration has ended, its purpose has been achieved, and it has lost most or all of its assets.

How to cancel your trade license in UAE

There are two steps to cancel your trade license in UAE.

First step

• Arrange for notarized minutes of the general assembly authorizing the liquidation of the company and the appointment of a liquidator.
• Create an official letter from a certified liquidator confirming your responsibility.
• Fill out the relevant form and submit it to DED, a specific Free Zone, or other approved channels to request cancellation.
• The respective authority will issue a certificate of company liquidation.
• Place advertising in two regional journals/newspapers announcing the company's closure.
• Borrowers have 45 days as a grace period from the date of publication to file their applications.

Secondary step

• Submit to the DED or the Free Zone Authority a declaration letter from the liquidator and the partners stating that no other parties have raised any objections during the grace period.
• To cancel a license, you must first obtain the necessary permits from respective government bodies.
• The registration with the Ministry of Human Resources and Emiratisation should be canceled.
• Cancel the visas of business partners and workforce sponsored by the company at the General Directorate of Residency and Foreigners Affairs.
• Submit all of the above records in order to obtain authorization for definitive cancellation.
• You must pay the fees.

Once done, the respective department will provide a refund receipt for the license cancellation. Once you pay the amount, they will give you the license cancellation certificate.

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