What ends often makes way for something bigger. That’s exactly what cancelling a trade license in Dubai can mean. It could be your next business move, a shift to a new industry, or simply closing a chapter on a positive note.
In Dubai, company closure is a formal process handled by the Department of Economic Development (DET) or the relevant free zone authority. Before cancelling a trade license, make sure all the financial dues are fully cleared, including government fees, penalties, and employee salaries.
Dubai is a city that constantly evolves, making it easy to start fresh with new ideas.
This guide explains how to cancel trade license in Dubai, including the steps, costs, and key legal formalities.
What is trade license cancellation in Dubai?
Trade license cancellation in Dubai is the legal procedure to formally end your business registration with the Department of Economy and Tourism (DET) or the relevant free zone authority. Once done, you can no longer conduct any commercial activity as the trade license becomes invalid.
What could be the possible reasons for cancelling trade license Dubai?
Many occasions may require you to cancel a trade license in Dubai, such as:
- Internal disputes
- Company liquidation
- Closure of a branch
- Company not been operating for long
- Expanding into some other business
- License expired for more than 2 years
- Relocation to another jurisdiction (from freezone to mainland)
In short, if you no longer plan to continue a business, cancelling its trade license becomes a legal requirement.
What if you don’t? Just let it sit on the side? Then, it can lead to unnecessary future fines, tax filing issues, and visa complications. The UAE government will definitely question you.
Legal requirements for trade license cancellation in Dubai
A business has many administrative, financial, and operational obligations attached to it. Closing a business means settling all of these properly so no issues or liabilities arise later.
Thus, the UAE government mandates businesses to complete the following legal formalities before a trade license can be cancelled:
| Type of Clearance | Key Government Authority | Action |
|---|---|---|
| Labour department clearances | MOHRE |
|
| Immigration department clearances | GDRFA |
|
| Closing tenancy and utility contracts |
DEWA Etisalat Ejari |
|
| Bank clearance | Respective bank |
|
| Finances and taxes settlement | FTA |
|
| Liquidation requirements (for LLCs and joint stock companies) | Notary Public |
|
| Parent company resolution (for branch closure) | Notary Public |
|
The DET or free zone authority will issue your trade license cancellation certificate only after all the above clearances have been submitted.
Step-by-step process for trade license cancellation in Dubai
The application for trade license cancellation in Dubai is submitted to the DET for mainland businesses, or to the respective free zone authority where your license is registered.
Keeping the process seamless, here is how to cancel trade license in Dubai:
Step 1 – Draft and sign a board resolution for liquidation:
This step is essential for LLCs or any company with share capital, where:
- Shareholders prepare a board resolution confirming the decision to close the business. It is then signed and notarised.
- A liquidator is also appointed at this stage, whose name is mentioned in the resolution and who prepares the initial liquidation report.
Step 2 – Publish the liquidation notice in two newspapers:
The liquidation notice is officially announced in two Arabic newspapers. A notice period of up to 45 days is given, allowing creditors to raise any claims, if any.
Step 3 – Get the necessary legal clearances and final liquidation report:
Get labour cards cancelled through MOHRE, visas associated with the company through GDRFA, along with the company establishment card. Settle DEWA, outstanding payments, and close the tenancy contract. If your business has stock or fixed assets, they must be disposed of. Once done, the liquidator prepares the final liquidation report.
Step 4 – Apply for trade license cancellation:
With everything in place, you can apply for cancellation with the DET (through Invest in Dubai portal) or the relevant free zone authority. Submit your original trade license, final liquidation report, board resolution, no-objection letters, and other supporting documents. Furthermore, the applicable fees must also be paid.
Once the review is completed, the authority issues the trade license cancellation certificate. As a result, the business is officially considered closed.
By following the trade license cancellation process carefully, your company will be successfully removed from the UAE government records. All shareholders, contractors, and managers will be free from any future duties and obligations.
Timeline for trade license cancellation
The trade license cancellation process takes:
- 30 to 60 days for mainland companies
- 1 to 3 weeks for free zone companies
The process can be faster depending on how quickly you obtain the required clearances.
Paperwork for Dubai trade license cancellation
The following documents need to be submitted to cancel trade license in Dubai:
| Shareholder Documents | Company Documents | Clearance Documents |
|---|---|---|
|
|
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How to cancel expired trade license in Dubai – Additional requirements
If a trade license in Dubai remains expired for more than 2 years, meaning it has not been renewed, then special conditions must be met during the cancellation process:
- Undertaking by local partner: The local partner is required to take full responsibility for the company’s debts and liabilities.
- Supporting documents of closure: Evidence is required to support the inactivity, such as partners not being traceable or the owner staying outside the UAE for more than 6 months.
- Liquidation announcement: Notice should be published in an Arabic newspaper for one day only. 15-day grace period for creditors to submit claims, if any
- No-liability undertaking: A statement confirming that the company has no outstanding liabilities or that all liabilities have been fully assumed
What is the fee for trade license cancellation in Dubai?
Trade license cancellation cost in Dubai is government-determined by DET or the respective free zone, which includes:
- License cancellation fee: AED 1020*
- Company dissolution fee: AED 2520*
Other liquidation costs include:
- Newspaper announcement fee
- Labour card cancellation fee (as per MOHRE)
- Visa cancellation fee (as per GDRFA)
- Attestation fee for board resolution
- Liquidator fee
- Establishment card cancellation fee
- Bank account closure charges
How to cancel trade license in Dubai online in mainland and free zone?
Trade license cancellation is done by DET in mainland and respective authority of free zone where the business is registered.
Free zone license cancellation process:
In order to cancel trade license in a Dubai free zone, follow these steps:
1 – Log in to the free zone portal (IFZA, Meydan, DWTC, etc.)
2 – Apply for cancellation under e-services
3 – Upload the required documents
4 – Cancel employee and investor visas through the free zone platform
5 – Clear all outstanding payments
6 – Close the corporate bank account
7 – Submit final clearances and required approvals
Mainland DED trade license cancellation process:
DED of the respective Emirate will cancel your trade license after you apply through their official websites:
| Emirate | Authority / Platform |
|---|---|
| Abu Dhabi | TAMM |
| Dubai | Invest in Dubai |
| Sharjah | Sharjah Department of Economic Development |
| Ajman | Ajman Department of Economic Development |
Types of trade license cancellation for different legal structures
How company closure works for different types of business structures in UAE:
| Business Type | Closure Process |
|---|---|
| LLC and public/private joint stock companies | Company is formally liquidated. An appointed liquidator prepares the required reports. |
| Branches | Closed as per the policies and resolution of the parent company. |
| Sole establishments and partnerships | Simpler closure process. Government clearances required, usually without appointing a liquidator. |
How Dubiz Business Setup helps?
Closing a business in Dubai can be a clean, confident step forward. When done right, it simply clears the way for our next big move.
Dubiz Business Setup helps you cancel trade license in Dubai through clear processes, VIP services, transparent fees, and all-in-one place assistance.
Dubiz trade license cancellation process:
- Contact us: Visit our office or get in touch online
- Submit documents: We help you prepare everything
- Application submission: Dubiz experts liaise with the authorities
- Receive your certificate: Get your trade license cancellation certificate
That’s it.
Contact Dubiz Business Setup today:
Address: Al Manara Tower, Office 2908, Business Bay, Dubai – UAE
Call: +971 56 369 5485
WhatsApp: +971563695485
Email: info@dubiz.co.
Frequently Asked Questions (FAQs)
Q1. Can I freeze my trade license in Dubai?
Yes. You can freeze your trade license registration for a period ranging from one year to three consecutive years. Although you must meet specific conditions, including paying the renewal fee for that period.
Q2. Can I cancel a trade license in Dubai while being outside?
Yes, you can. However, you will need to appoint an authorized representative under a notarised Power of Attorney (PoA), who will complete the legal formalities and processes on your behalf.
Q3. Do I need to cancel staff visa before cancelling trade license Dubai?
Yes. All visas linked to the business, including staff visas, must be cancelled through GDRFA before cancelling the trade license.
Q4. Does every business need a liquidator?
No, it’s only companies with share capital, like an LLC and joint stock company, that need to appoint a license liquidator at the time of business closure.
Q5. How long does it take to close a company in Dubai?
Closing a company in Dubai generally takes 30 to 60 days on the mainland, whereas the process in a Dubai free zone can be completed within 1 to 3 weeks.
Q6. How much is the Dubai trade license cancellation fee?
The official trade license cancellation fee in Dubai is AED 1020*. However, it is subject to government changes.
Q7. How do I cancel my commercial license?
Being a business owner or authorized representative, you must formally submit a commercial license cancellation application to DET or free zone.
