Artices

𝐘𝐨𝐮𝐫 𝐔𝐀𝐄 𝐓𝐫𝐚𝐝𝐞 𝐋𝐢𝐜𝐞𝐧𝐜𝐞 𝐄𝐱𝐩𝐢𝐫𝐞𝐝?
𝘠𝘰𝘶𝘳 𝘊𝘰𝘮𝘱𝘢𝘯𝘺 𝘚𝘵𝘪𝘭𝘭 𝘐𝘴𝘯’𝘵 𝘋𝘦𝘢𝘥! 😳

One of the most common questions we receive from business owners in the UAE is whether a company automatically ceases to exist if they do not renew their trade licence.
Non-renewal of a trade licence does NOT dissolve the company.
The entity continues to remain legally active and may also incur administrative penalties until it is formally liquidated and deregistered with the relevant authorities.

To properly close a company in the UAE, the following statutory compliances must be completed:

1. 𝐂𝐚𝐧𝐜𝐞𝐥𝐥𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐓𝐫𝐚𝐝𝐞 𝐋𝐢𝐜𝐞𝐧𝐜𝐞
Initiate the formal licence cancellation process with the relevant Free Zone Authority or the Department of Economic Development (DED) for mainland companies. This may include board resolutions, NOC clearances, liquidator appointment, audit report, and public notices depending on the jurisdiction.

2. 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐓𝐚𝐱 𝐃𝐞𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 (𝐂𝐓𝐀 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭)
A Corporate Tax Deregistration application must be filed on the FTA portal.
The FTA generally approves deregistration only after all outstanding tax returns and liabilities (including penalties) are cleared.

3. 𝐕𝐀𝐓 𝐃𝐞𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 (𝐈𝐟 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞)
File a VAT Deregistration request on the FTA portal. All VAT returns up to the effective date and any pending payments must be completed before approval.

4. 𝐂𝐥𝐨𝐬𝐮𝐫𝐞 𝐨𝐟 𝐁𝐚𝐧𝐤 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬
The company’s bank accounts must be formally closed, and closure letters should be retained as part of liquidation records. The above list is not exhaustive, there may be other requirements for closure of the Company
on the basis of jurisdiction it is established

𝘐𝘧 𝘺𝘰𝘶𝘳 𝘢𝘳𝘦 𝘭𝘰𝘰𝘬𝘪𝘯𝘨 𝘧𝘰𝘳 𝘨𝘶𝘪𝘥𝘢𝘯𝘤𝘦 𝘰𝘯 𝘩𝘰𝘸 𝘵𝘰 𝘱𝘳𝘰𝘤𝘦𝘦𝘥 𝘸𝘪𝘵𝘩 𝘤𝘢𝘯𝘤𝘦𝘭𝘭𝘢𝘵𝘪𝘰𝘯 𝘰𝘧 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘪𝘯 𝘜𝘈𝘌, 𝘴𝘩𝘢𝘳𝘦 𝘺𝘰𝘶𝘳 𝘲𝘶𝘦𝘳𝘪𝘦𝘴 𝘸𝘪𝘵𝘩 𝘶𝘴

hashtag#UAE hashtag#Dubai hashtag#mainland hashtag#Companysetup hashtag#Corporatetax hashtag#VAT hashtag#tradelicence hashtag#CAVidhuDuggal hashtag#VDC hashtag#BusinessSetup hashtag#BusinessConsultant hashtag#UAEBusinessSetup