Trade Licence Cancellation in the UAE

Trade license cancellation cost in Dubai and the rest of the UAE depends on what has to be closed: the licence, the visas, the labour file, the bank account and your tax registrations. We map each step and handle the closure from start to finish.

Description

If you are looking up the trade license cancellation cost in Dubai, Sharjah or Ajman, the honest answer is that there is no single figure. Closing a company is several separate closures, and which ones apply depends on your licensing authority, legal form, number of visas and how up to date the company's renewals and filings are. Letting the licence expire is not the same as cancelling it: the company stays on the authority's records, and its VAT and Corporate Tax registrations stay open until you apply to deregister.

The cost is made up of: the licensing authority's cancellation charges (and, for companies, dissolution and liquidator appointment); a licensed liquidator or auditor where a liquidation is required, plus the creditor notice in the newspapers; cancelling each employee's work permit and residence visa and each partner or investor visa; employees' end-of-service benefits and other final dues under the UAE Labour Law; cancelling the establishment (immigration) card and closing the labour file; any unpaid renewals, fines or penalties; ending the office lease or flexi-desk agreement and getting utility clearances; and final VAT and Corporate Tax returns. Send us your licence copy and a list of current visas and we will give you a written quote that covers each of these.

In Dubai mainland, the Department of Economy and Tourism (DET) treats companies in two phases. In phase one you submit notarised general assembly minutes resolving to liquidate and naming a liquidator, the liquidator's acceptance letter with their licence, auditor registration and notarised signature, and you announce the liquidation in two local Arabic newspapers so creditors have 45 days to claim. In phase two you submit the original newspaper notice, the liquidator's final report, a declaration from the liquidator and partners that no objections were received, proof that labour cards were cancelled with MOHRE, and the dissolution certificate. Sole proprietorships and civil companies do not go through liquidation, but labour cards must still be cancelled first, and a civil company also needs a notarised partnership termination contract. If the business is changing direction rather than ending, a Dubai trade licence amendment may be the better route.

In Ajman, the Department of Economic Development handles mainland cancellations. A sole establishment publishes a newspaper notice with a 15-day period. A limited liability company needs a termination letter for the partnership contract, a 45-day newspaper notice, the partners' IDs, an auditor's letter, a general assembly resolution approving the cancellation, and an auditor's no-objection letter once the notice period ends. If you would rather keep the company for now, Ajman trade licence renewal keeps it in good standing.

In Sharjah, cancellations go through the Sharjah Economic Development Department (SEDD). SEDD asks for the establishment card cancellation letter from MOHRE, and companies go through a liquidation with a creditor notice period before the final cancellation. SEDD sets the exact document list for each legal form, so we confirm it with SEDD before filing.

Free zones run their own cancellation process. In Ajman Free Zone (AFZ), the authority asks for clearance certificates from utilities and from ports and customs for warehouse and land licences. The Ajman government service catalogue lists a 17-day service time once those prerequisites are in place. SHAMS, SPC, Hamriyah, SAIF Zone and the Dubai free zones each set their own checklist. These checklists usually include a shareholder resolution, cancellation of every visa and the establishment card, settlement of any amounts owed to the free zone, and often a bank closure letter and an auditor's liquidation report. If your accounts for the final period are not ready, we can arrange audited financial statements for the closure.

The order matters. Employees are paid their final dues first, then their work permits and residence visas are cancelled. Partner and investor visas come next, then the establishment card and labour file. The bank account normally stays open until debts and final payments are settled, then it is closed and a closure letter is obtained. Once the licence is cancelled, VAT must be deregistered on EmaraTax within 30 business days of ceasing taxable supplies, and the final return and any VAT due must be filed within 28 days of the deregistration date. Corporate Tax deregistration needs the licence cancellation document and financial statements up to the cancellation date, and the application is due within three months of cessation (FTA Decision No. 6 of 2023). Both are done in the same EmaraTax account used for VAT registration.

Most of a closure is government transactions, typing-centre applications and visits to the authorities, which we handle as part of our PRO services. What changes the cost and time most is the legal form (an LLC or other company needs a liquidation; a sole establishment usually does not), the number of visas, whether the licence has expired or carries fines, and whether the accounts are up to date. Message us on WhatsApp or live chat with your licence details for a quote.

What's Included

A closure review of your licence, visas, labour file, debts and tax registrations, with a step-by-step plan
Drafting the shareholder or general assembly resolution and arranging notarisation
Coordinating the liquidator or auditor where your authority requires one
Arranging the creditor notice in the newspapers where required
Cancelling employee work permits and residence visas, and partner or investor visas
Cancelling the establishment card and closing the labour file
Submitting the cancellation to DET, Ajman DED, SEDD or your free zone, and collecting the cancellation or dissolution certificate
VAT and Corporate Tax deregistration applications on EmaraTax

Requirements / Prerequisites

Agreement of all shareholders to close the company, recorded in a resolution
Final salaries and end-of-service benefits paid to employees before their visas are cancelled
Outstanding renewals, fines and amounts owed to the authority settled or identified
Accounts brought up to date to the cancellation date, as needed for the liquidation report and Corporate Tax deregistration
A notarised power of attorney if the owner will not be in the UAE during the process (subject to the authority's acceptance)

Required Documents

Trade licence copy and Memorandum or Articles of Association
Passport and Emirates ID copies of all shareholders and the manager
Notarised resolution approving the dissolution and appointing a liquidator (companies)
Liquidator's acceptance letter, licence and notarised signature specimen (Dubai mainland companies)
Newspaper creditor notice and, after the notice period, the liquidator's or auditor's final report and no-objection declaration
Work permit and residence visa cancellation papers for all employees and partners
Establishment card cancellation letter and labour file closure
Lease termination and utility or customs clearance letters, where the authority requires them
Bank account closure letter, where the authority requires it
Financial statements up to the cancellation date (for Corporate Tax deregistration)

Our Process

Closure review: we check the licence status, legal form, visas, fines, lease and tax registrations, and confirm the authority's current checklist
Resolution: shareholders sign the dissolution resolution, notarised where required, and appoint a liquidator if the company needs one
Start of cancellation: we file the initial cancellation or liquidation application with the authority
Creditor notice: the liquidation is published in the newspapers and the notice period runs (45 days for Dubai and Ajman mainland companies)
Staff: final dues are paid, and employee work permits and residence visas are cancelled
Owners: partner and investor visas are cancelled, then the establishment card and labour file
Clearances: the final liquidation or audit report is prepared, the lease is ended, utility clearances are obtained and the bank account is closed
Cancellation: final documents are submitted and the authority issues the cancellation or dissolution certificate
Tax: VAT and Corporate Tax are deregistered on EmaraTax and the final returns are filed

Pricing

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Frequently Asked Questions

How much does trade licence cancellation cost in Dubai?

It depends on what has to be closed. The total is made up of DET's cancellation and dissolution charges, liquidator and newspaper notice costs for companies, visa and work permit cancellations, staff end-of-service dues, establishment card and labour file closure, any outstanding fines or renewals, lease exit, and final tax filings. Send us your licence and visa details on WhatsApp or live chat for a written quote.

How long does it take to cancel a trade licence?

For Dubai and Ajman mainland companies, the creditor notice period alone is 45 days, so plan for at least that, plus time for visas and clearances. Sole establishments are usually quicker. In Ajman Free Zone, the official service time is 17 days once all prerequisites are complete. FTA deregistration follows and has its own review time.

Do I need a liquidator to close my company?

For LLCs and other companies on the Dubai mainland, yes: DET requires a liquidator and a final liquidation report. Ajman DED requires an auditor's letter for LLCs. Many free zones ask for an auditor's liquidation report. Sole establishments generally do not need one.

What happens if I just let my trade licence expire?

The company is not closed. It stays on the authority's records, and its VAT and Corporate Tax registrations remain active until you deregister, so filing obligations continue. Fines for the expired licence and for visas can also build up, and they usually have to be settled before you can cancel.

Do I have to cancel visas before cancelling the licence?

Yes. Employee work permits and residence visas, then partner and investor visas, and then the establishment card must be cancelled before the authority will issue the final cancellation. Employees must receive their final dues before their permits are cancelled.

Do I need to deregister from VAT and Corporate Tax?

Yes. VAT deregistration must be applied for on EmaraTax within 30 business days of ceasing taxable supplies, with the final return due within 28 days of the deregistration date. Corporate Tax deregistration needs the licence cancellation document and financial statements up to the cancellation date, and should be filed within three months of cessation.

Can I cancel my trade licence from outside the UAE?

Often yes, through a notarised power of attorney (attested if signed abroad) that lets us act for you. Some steps, such as cancelling your own residence visa, depend on your status, so we check what applies to your case before we start.

Is cancelling a free zone licence different from a mainland one?

Yes. Each free zone, such as Ajman Free Zone or SHAMS, sets its own checklist and clearances, and visas and the establishment card are handled through the free zone. The FTA deregistration steps are the same for mainland and free zone companies.