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 the respective government bodies.
- The registration with the Ministry of Human Resources and Emiratisation should be canceled.
- Cancel the visas of business partners and the workforce sponsored by the company at the General Directorate of Residency and Foreign 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.
What Government Clearances are Required to Cancel a Trade License in the UAE?
To officially cancel your LLC trade license, you must obtain several no-objection certificates (NOCs) and clearances from key UAE authorities. This ensures that your business has fulfilled all legal, tax, and immigration obligations. These may include:
If your company is VAT-registered or has filed tax returns, you must:
- Apply for VAT Deregistration via the FTA e-Services portal.
- Settle all pending tax liabilities and submit final returns.
- Obtain a VAT Deregistration Certificate.
Failing to cancel VAT registration before license cancellation may result in penalties.
- Cancel all active labor cards and employment contracts.
- Close the company’s labour file.
- Ensure end-of-service benefits and dues are paid to employees.
- Cancel all residence visas under the company’s sponsorship (including owners, partners, and employees).
- Apply for GDRFA clearance, confirming that all visa obligations are closed.
4. Utility and Telecom Providers
- Cancel electricity and water services (e.g., DEWA in Dubai or ADD in Abu Dhabi).
- Cancel telecom connections (e.g., Etisalat, du) and settle all bills.
5. Municipality and Civil Defence Clearance
If your business had a physical office, warehouse, or retail outlet:
- Obtain clearance from the Municipality and Civil Defence confirming there are no outstanding dues, violations, or leases.
How Long Does It Take to Cancel a Trade License in the UAE?
The trade license cancellation and liquidation process usually takes 60 to 90 days, depending on the type of business, document readiness, and authority approvals.
Key timeframes:
- Newspaper notice period: 45 days
- Government clearance: 1–2 weeks (each authority)
- Final review and cancellation: 5–10 business days
What Happens If You Don’t Cancel a Trade License in the UAE?
Neglecting to cancel your trade license can result in serious consequences:
- Accumulation of government fines and penalties
- Blacklisting of company owners and partners
- Denial of visa applications or business registration in the future
- Legal actions for unpaid dues or taxes
To maintain a clean legal and financial record, it’s crucial to complete the trade license cancellation and liquidation process properly.
Key Considerations for Free Zone Companies
If your company operates under a UAE Free Zone (e.g., DMCC, JAFZA, RAKEZ, or DAFZA), the process involves similar steps, but with Free Zone-specific procedures and documentation.
- Confirm final audit requirements
- Use the Free Zone’s digital portal for application submission
- Pay any applicable exit fees or fines
- Clear lease agreements for office spaces
Ready to Cancel Your LLC License in the UAE?
At Reyson Badger, we simplify the company liquidation and trade license cancellation process for you. Our experts handle documentation, government clearances, and approvals, ensuring a smooth and stress-free experience.
