Whether you want to close down your Company to reopen a new one in the Mainland, or for some unfortunate event, you want to close your business functioning in the Mainland completely, you may question How easy it is to close a Business in Mainland, UAE?
Well, closing a Business in Mainland UAE is not that easy. Both emotionally and for the pain you need to go through for the paperwork and legal proceeding it requires. It needs a lot of steps, processes, documentation, approval from relevant authorities, and more. Despite any industry type, the organization operating in UAE must cancel its license and all related permits associated with it; if it wants to close the business. Failing to which might land you in situations where you might have to pay huge penalties.
Make sure to fulfill all the liabilities towards shareholders and other third parties before closing your business in Mainland, UAE. Do not cut off all ties with parties and burn the bridges behind, as you might want to start a new endeavor. Indeed, it is much easier to do with those having previous experience with you and who already know you than to start over again, which is time-consuming.
Before closing a Business in Mainland, UAE understands the difference between Mainland and Freezone. and Process of Business set up in UAE.
Steps for Closing Company in Mainland, UAE
Closing a Company in Mainland UAE can be for any reason. Cancel your business license and all the associated permits when deciding to shut down your business in UAE.
Closing a sole proprietorship and a company branch in UAE is simple.
Step1
Visit a suitable Emirate Economic Department with an application to apply for Company cancellation and get approvals associated with your business activities.
Step 2
Cancel the establishment card of the firm and the visas of the foreign business partners that sponsor the firm.
Step 3
Get necessary Clearance Letters from:
• Ministry of Human Resources and Emiratization
• General Directorate of Residency and Foreigners Affairs,
• Utility organizations that deal with electricity, water, cooling,
• Present office space leasing Landlord or real estate company.
Step 4
Draft a partnership cancellation contract attested by a notary public or state court.
Note that if the Company at Mainland has shares or is a Join Stock firm, the license cancellation process becomes lengthy as it may require a Liquidator to liquidate the shares or stocks of the Organization, collect debts & pay the lenders and get clearance from DED.Closing all forms of companies in Mainland, UAE
Closing all forms of companies in Mainland, UAE
Step1
Prepare and validate the board resolution confirming company liquidation and appoint a liquidator and he must issue a letter of acceptance.
Step 2
Submit this letter and all the required credentials to a relevant Emirate Economic Department which will issue a liquidation certificate. Publish this certificate in two local newspapers. Once published, the debtors can present their claims within 45 days from the publication date
Step 3
For the final cancellation approval or closing of your business in Mainland UAE, submit the declaration letter from the Liquidator stating no objections from any third party during the grace the required approvals from the related authorities.
Note
For License cancelation of private shareholding Companies, they must confirm the Ministry of Economy’s approval.Public shareholding companies must ensure the approval of the Securities and Commodities Authority. Also,
The cancellation of the company establishment card is at the Ministry of Human Resources and Emiratization, and the cancellation of all UAE resident visas at the General Directorate of Residency and Foreigners Affairs.After submitting all the mentioned documents, the suitable Economic Department will determine the fees & it will give the final cancellation approval. Secure this approval of the DED legal advisor.
Also, do apply for Company deregistration once the process finalizes.
