CLOSE THINGS RIGHT
Liquidation / Company Insolvency
Whether it is an LLC, Sole Establishment or Sole Proprietorship, Corporation, Partnership or other establishment – No matter of what type of business you own in the UAE, you must cancel your business license and all related permits associated with it when you have made your decision to close it down. This page provides a summary of the formalities for closing your business and cancelling its license properly.
Cancellation process is not that simple and requires more steps that it may seem. As the first steps, one should apply for cancellation via DED and attain necessary clearances from a number of Ministries and Administrative bodies, pay fees and any outstanding debts, cancel visas, cards, obtain Cancellation Certificate and other steps.
De-Registration of VAT when Closing your Business in UAE
Another important issue, if a company is registered under VAT with the FTA, it is Value added tax (VAT) de-registration in a proper way.
This is not less important than VAT Registration in UAE.
The executive rules and regulations regarding VAT de-registration have made it clear for the people that they must follow the proper procedures to get deregistered from paying taxes.
Why cancelling the license is a requirement upon business closure?
It is important for relevant government entities to know that you are no longer in the business so you will avoid any accumulated fines and penalties incurred upon your license, when it is not renewed upon expiry date.
If you are in a shareholding company, it is important to discharge your liabilities towards creditors and partners and protect your interests and shares.
It is also wise to put your goodwill and business reputation in perspective, if you decide to open a business again.
Formalities for cancelling your business license
Cancelling the license depends on the form of your company. For establishments and sole proprietorships, the process is simple because all you need to do is to apply for cancellation through DED and acquire all relevant clearances from:
- Ministry of Human Resources and Emiratisation
- Directorate of Residency and Foreigners Affairs
- the relevant water and electricity authority
- the leasing entity etc.
However, for companies with shares, the process is longer because it requires liquidating the shares, collecting the debts and paying the creditors before finalising with DED.
Companies which require a liquidator
You need to appoint a liquidator if the legal form of your company is one of these:
- General Partnership
- Limited Liability Company
- Simple Limited Partnership
- Public Joint Stock Company
- Private Joint Stock Company
LIQUIDATE A COMPANY IN A MAIN LAND
LIQUIDATE A COMPANY IN A FREE ZONE
contact us now to know more
Asad Abbas International will assist you and guide you through a hassle-free process than you could imagine. We take care from filling up the application forms, submission and collections of payments and required documents on your behalf, up to obtaining your UAE residence visas and bank account.
“AAi” is a shortened name for AAZ International Corporate Services, led by Mr. Asad Abbas, Founder and CEO of Asad Abbas & Co. (Chartered Accountants) and supported by highly proficient and experienced team.
Duly licensed by the Dubai Economic Department with offices in Dubai and Abu Dhabi, the firm provides business set-up and company formation services across UAE. Key services include selection of the correct legal form and locality based on business needs, license registration, business advisory, employee visas obtaining, bank account opening, accounting and payroll outsourcing, financial services advisory, budgeting and taxation advice, provision of secretarial and other services.
AAi mission is to continuously add value to clients by helping them to develop winning strategies and achieve maximum potential in business operations across UAE. By achieving our mission, we contribute to UAE’s economic growth and prosperity.
The firm has delivered a great number of top-notch projects and assisted thousands of clients during more than 10 years of successful operations.
Being part of such prominent market players, AAi guarantees excellent client services of the highest quality, provides local expertise and full scope of services vital to achieving outstanding business growth for clients.