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 trade license (and any related licenses) is a critical step when closing a company. This process is not just a formality, it ensures compliance with UAE laws, clears your financial and legal obligations, and protects you from future liabilities.

At Reyson Badger, we assist businesses across Dubai, Abu Dhabi, Sharjah, and other Emirates in completing the trade license cancellation process smoothly. Our experts ensure compliance with UAE laws, coordinate with government departments, and handle every step on your behalf.
 

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

As per Federal Law No. 2 of 2015 (Articles 306–326), a business may be dissolved if:

• Its duration has ended.
• Its purpose has been achieved.
• It has lost most or all of its assets.
• Shareholders decide to liquidate.
• Bankruptcy has been declared.

When a business no longer wishes to operate, canceling the trade license is a legal requirement in the UAE. Without it, the license may continue to accrue penalties, immigration fines, or tax obligations. Proper closure ensures:

• No penalties from DED or free zone authorities
• Clearance of employee visas and labor contracts
• Settlement of corporate tax or VAT obligations
• Protection of shareholder reputation and future business opportunities
• A clean legal record for both owners and the company

Reyson Badger ensures that your company’s exit from the UAE market is transparent, compliant, and stress-free.
 

Types of Business License Cancellation in UAE

Mainland Company Trade License Cancellation

For businesses registered with the Department of Economic Development (DED), license cancellation involves multiple steps, including final audit reports, visa cancellations, labor clearance, and approvals from government authorities.

Free Zone Company Trade License Cancellation

Free zones such as DMCC, JAFZA, IFZA, Shams, and Dubai Silicon Oasis (DSO) follow their own procedures for license cancellation. The free zone authority requires NOC from utilities, employee visa cancellation, and clearance of financial obligations.
 

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.
  Creditors (third-party claimants) have a 45-day grace period from the date of publication to submit claims
   

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.

After submitting all clearances and paying the required cancellation fees, the competent authority issues the trade-license cancellation certificate.
 

Documents Required for Trade License Cancellation in UAE

To cancel a trade license in the UAE, you must provide:

• Copy of trade license
• Power of Attorney (if any)
• Memorandum of Association (MOA) with amendments
• Shareholder resolution approving cancellation
• Emirates ID copies of shareholders
• Passports of shareholders

Additional clearances from labour, immigration, banks, utilities, or leasing authorities may also be required, depending on the business type.
 

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:

1. Federal Tax Authority (FTA)

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.
 

2 . Ministry of Human Resources and Emiratisation (MOHRE)

• 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.
   

3. General Directorate of Residency and Foreigners Affairs (GDRFA)

• 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.
 

Cost of LLC Trade License Cancellation in UAE

The total cost of cancelling an LLC trade license in the UAE is not a single fixed fee. It is a combined cost that depends on the company’s structure, number of employees, licensing authority, and whether there are any outstanding obligations. The overall cancellation cost generally includes trade license cancellation fees, labour card cancellation charges (if applicable), government clearances, and professional service costs.

• Trade License Cancellation Fees in the UAE

Trade license cancellation fees are charged by the Department of Economic Development (DED) for mainland companies or by the relevant Free Zone Authority for free zone companies. These fees cover the official closure of the business license and administrative processing with the licensing authority. The exact amount varies based on the emirate, license type, and business activity.

• Labour Card Cancellation Fees (If the Company has Employees)

Labour card cancellation fees apply only if the company has active employees registered with the Ministry of Human Resources and Emiratisation (MOHRE). Each employee’s work permit and labour card must be formally cancelled before the trade license can be closed. For mainland companies, this process is completed through MOHRE, while for free zone companies, employee cancellations are handled through the respective free zone authority. The cost depends on the number of employees and the status of their employment contracts and is charged separately from the trade license cancellation fee.

• DED License Cancellation Fees for Mainland Companies

For mainland businesses, DED license cancellation fees form part of the overall closure process. These fees relate specifically to closing the company’s license with the Department of Economic Development after completing all required clearances from labour, immigration, tax, and other government authorities.

• Other Costs Involved in LLC License Cancellation

In addition to license and labour-related fees, the total cancellation cost may also include:

• Government clearance requirements from MOHRE and GDRFA, and Federal Tax Authority (FTA) deregistration procedures, where applicable
• Notary and legal documentation charges
• Newspaper advertisement costs for liquidation announcements
• Professional liquidator or consultancy service fees

On average, the cancellation of an LLC trade license in the UAE may range between AED 8,000 and AED 15,000, depending on the company’s size, number of visas, regulatory requirements, and outstanding liabilities. At Reyson Badger, we provide transparent cost estimates before starting the trade license cancellation process, ensuring businesses have a clear understanding of all applicable fees and obligations.

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
   

Role of Reyson Badger in Trade License Cancellation in UAE

• Expert consultation on UAE business closure laws
• Coordination with DED, free zone authorities, MOHRE, GDRFA, and FTA
• Preparation of all resolutions, applications, and legal paperwork
• Settlement guidance for employees, utilities, and tax obligations
• Hassle-free service to avoid penalties and delays

With Reyson Badger, you can focus on your next venture while we ensure your business closure is handled professionally.

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.