ððšð®ð« ððð ðð«ððð ðð¢ððð§ðð ðð±ð©ð¢ð«ðð?
ð ð°ð¶ð³ ðð°ð®ð±ð¢ð¯ðº ððµðªðð ððŽð¯âðµ ððŠð¢ð¥! ð³
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. ððð§ððð¥ð¥ððð¢ðšð§ ðšð ðð«ððð ðð¢ððð§ðð
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. ððšð«ð©ðšð«ððð ððð± ððð«ðð ð¢ð¬ðð«ððð¢ðšð§ (ððð ðððªð®ð¢ð«ððŠðð§ð)
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. ððð ððð«ðð ð¢ð¬ðð«ððð¢ðšð§ (ðð ðð©ð©ð¥ð¢ðððð¥ð)
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. ðð¥ðšð¬ð®ð«ð ðšð ððð§ð€ ððððšð®ð§ðð¬
The companyâs 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
ðð§ ðºð°ð¶ð³ ð¢ð³ðŠ ðð°ð°ð¬ðªð¯ðš ð§ð°ð³ ðšð¶ðªð¥ð¢ð¯ð€ðŠ ð°ð¯ ð©ð°ðž ðµð° ð±ð³ð°ð€ðŠðŠð¥ ðžðªðµð© ð€ð¢ð¯ð€ðŠððð¢ðµðªð°ð¯ ð°ð§ ð£ð¶ðŽðªð¯ðŠðŽðŽ ðªð¯ ððð, ðŽð©ð¢ð³ðŠ ðºð°ð¶ð³ ð²ð¶ðŠð³ðªðŠðŽ ðžðªðµð© ð¶ðŽ
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