Closing a business in Dubai’s mainland involves a structured process to ensure compliance with legal requirements and to avoid future liabilities. Here’s a step-by-step guide to help you navigate the cancellation of your Dubai mainland license:
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Settle Financial Obligations
Assets and Liabilities: Ensure all company assets are liquidated, and liabilities settled. Maintain records of all transactions for transparency.
Bank Accounts: Close all corporate bank accounts. Obtain clearance letters from your bank confirming the closure and settlement of any loans or overdrafts.
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Cancel Employee Visas and Labor Cards
Ministry of Human Resources and Emiratisation (MOHRE): Cancel all employee labor cards and work permits. Ensure that employees receive their end-of-service benefits as per UAE labor laws.
General Directorate of Residency and Foreigners Affairs (GDRFA): Cancel all employee residence visas. This step is crucial to prevent future immigration issues.
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Obtain Clearances from Relevant Authorities
Utilities: Settle outstanding bills and obtain clearance certificates from utility providers such as DEWA (Dubai Electricity and Water Authority).
Lease Agreements: Terminate the lease for your business premises and obtain a No Objection Certificate (NOC) from your landlord.
Regulatory Bodies: Depending on your business activity, secure clearance from relevant authorities (e.g., Dubai Municipality, Department of Tourism and Commerce Marketing).
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Appoint a Liquidator (if applicable)
For companies with multiple shareholders, such as LLCs, appointing a licensed liquidator is mandatory. The liquidator will oversee the dissolution process, including settling debts and distributing any remaining assets.
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Publish a Notice of Liquidation
Publish a notice of your company’s liquidation in two local newspapers (one in Arabic and one in English). This notice provides a 45-day period for any creditors to submit claims against the company.
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Finalize the License Cancellation
Department of Economic Development (DED): Submit all required documents, including clearance certificates, liquidator’s report, and proof of newspaper advertisements, to the DED. Upon verification, the DED will issue a license cancellation certificate, officially dissolving your company.
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Post-Cancellation Considerations
Record Keeping: Retain all documents related to the cancellation process for future reference.
Legal Compliance: Ensure that all legal and contractual obligations are fulfilled to prevent any future liabilities.
Navigating the license cancellation process can be complex, and it’s advisable to consult with legal experts or business consultants specializing in UAE company law to ensure a smooth and compliant closure of your business.
For information on Closing your Business, contact finnection via email at info@finnection.ae or call us at our toll free number +971 800 0120070
Disclaimer: Above information is subject to change and represent the views of the author. It is shared for educational purposes only. Readers are advised to use their own judgement and seek specific professional advice before making any decision. Finnection is not liable for any actions taken by reader based on the information shared in this article. You may consult with us before using this information for any purpose.