Closing Your Business in Dubai: Comprehensive Guide

When you decide to close your business in Dubai, cancelling your trade license is a crucial step. Here’s a detailed guide tailored to different business types:

For Sole Proprietorships:

• Start by cancelling labor cards through the Ministry of Human Resources & Emiratisation.

For Civil Companies:

• Cancel labor cards through the Ministry of Human Resources & Emiratisation.
• Provide a notarized partnership termination contract.

For Company De-registration (all legal forms):

Phase 1:

• Obtain notarized minutes of the General Assembly meeting confirming company liquidation and appointing a liquidator, with their details.
• Include a letter from the liquidator accepting their role, along with necessary documents (license copy, auditor registration, notarized signature specimen).
• Pay AED 520 for the certificate of company dissolution and liquidator appointment, subject to legal advisor’s approval.
• Advertise the liquidation in two Arabic newspapers for one day, allowing debtors 45 days to submit claims.

Phase 2:

• Submit the original newspaper with the liquidation announcement and the company’s final report.
• Provide a declaration from the liquidator and partners confirming no objections received within 45 days.
• Cancel labor cards through the Ministry of Human Resources & Emiratisation.
• Include minutes of the General Assembly meeting and the certificate of dissolution.

For Branches:

Foreign Company Branch:

• Obtain Ministry of Economy’s register decision for liquidation.
• Provide an attested Board of Directors’ decision to cancel.
• Cancel labor cards through the Ministry of Human Resources & Emiratisation.

Local Company Branch:

• Submit the Board of Directors’ decision to cancel.
• Cancel labor cards through the Ministry of Human Resources & Emiratisation.

Free Zone Company Branch:

• Obtain the decision to delete branches from the Ministry of Economy (if registered).
• Provide an attested decision from the parent company to cancel branches (for companies not registered with the Ministry of Economy).
• Cancel labor cards through the Ministry of Human Resources & Emiratisation.

Expired License (Over Two Years):

Phase 1:

• Provide an undertaking from the local partner accepting responsibility for the company’s debts.
• Submit documents proving the reason for license cancellation (e.g., partner residing outside UAE for over six months).
• Advertise the cancellation in Arabic newspapers for one day, with a 15-day grace period for debtors.

Phase 2:

• Submit the original newspaper with the cancellation announcement.
• Cancel labor cards through the Ministry of Human Resources & Emiratisation.

Fees:

• License cancellation fee: AED 1,020
• Company dissolution fee: AED 2,520

Following these steps ensures a smooth closure process for your business in Dubai, adhering to all regulatory requirements.