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It is an established fact that Dubai is a business hub for entrepreneurs around the world. Businesses from all around the world are taking advantage of the policies adopted by the government of Dubai for growth of commerce and trade activities. These businesses are set in both mainland and free zones in Dubai. Both of these areas provide several opportunities for entrepreneurs. Most businesses require a commercial trade license in Dubai for opening a company.
But the business opportunities don’t remain favorable for all entrepreneurs at every time. The time may come when a business would like to end its presence in Dubai. An example is a current situation in Dubai after implementation of VAT (value-added tax) in UAE. Though the tax is quite minimal at just 5% and the government is also trying to facilitate businesses to overcome the burden.
But even then few corporations might find it difficult to go through with the extra fee (tax) on them and would find it appropriate to end their business in the emirate. In this situation, there is a complete process to end your business in the emirate of Dubai. The first step to be taken during this process is the deactivation of a trade license.
Importance of Dubai trade license deactivation
One must be aware that deactivating your trade license before closing your business in Dubai. Deactivation is a complete process that provides information to government departments and public about ending of your business venture in Dubai.
Completing this process in due time will save you from penalties and fines that will be laid down on closed businesses without a deactivation license. Failing to abide by all the rules of deactivation process can create several problems for your future business especially in UAE and the Middle East region.
Trade license deactivation process in Dubai
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 as compared to the deactivation of a license for 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). In the initial stage, the company has to get clearance from various government departments including, Ministry of Labour, Immigration department, DEWA (Dubai Electricity & Water Authority), etc.
Stages of Trade license deactivation in Dubai
There are two stages for cancellation of license in DED.
- In the first stage, the cancellation application will be prepared and the cancellation contract will be made notary public. This will also be published in two local newspapers where claims can be made for 45 days.
- The second stage starts after the completion of 1st stage. In the 2nd stage, the visa and company established card will be canceled and the owner will receive clearance from relevant departments including DEWA, Etisalat and Dubai customs.
In order to make this whole process simple and convenient, you can contact Riz & Mona Consultancy via our WhatsApp # 971-54-5821012. We are specialists in dealing with various business procedures including deactivation of trade license in Dubai and other parts of UAE.