Trade license cancellation is the most important part of company liquidation in Dubai or UAE. Companies need to liquidate when they do not have enough funds to continue daily operations, to pay their employees or service their debt. Liquidation also becomes inevitable when a company commits a serious offense or corporate fraud and UAE business regulatory agencies begin investigating and find violations, or when the company gets a legal notice that affects its regular operations. For company liquidation in UAE, trade licenses needs to be canceled. Once the business license is canceled, the same one cannot be re-activated. For trade license cancellation, you need to submit various documents and get different approvals from the government and federal agencies, depending on the type of business license you hold.
LLC Company Liquidation process:
For LLC company liquidation, the company board needs to pass and notarise a resolution, detailing the intention to liquidate the company and also needs to appoint liquidators. The company personnel will also have to get no-objection letters from the company sponsor, Dubai Electricity, and Water Authority, Etisalat UAE, Ministry of Labour and Immigration as well as Road and Transport Authority. You will also be required to get the bank account closure certificate and a no-liability certificate, for company liquidation in Dubai. Besides this, limited liability companies will need to get a shareholders’ The resolution, to dissolve the businesses, notarized from the public notary and procure a company dissolution letter from the economic development department.