Whenever you want to deregister your company in UAE, you must first cancel all your permits and licenses. This is really important for all the companies who have decided to close down their companies in the UAE.
Here is what you need to know in order to close down your business in a proper legal manner.
First of all, the government needs to know your reason behind deregistering a company. They must know why you no longer want to continue the company’s operations anymore. This step is mandatory as it saves the company from heavy fines and penalties on the license when it doesn’t get renewed after its expiry date.
For a company with shareholders, discharging the liabilities and protecting the interests and shares is really important. So, to save the reputation of your business and to avoid the fines, cancelling the license and permits is important.
What do you need to do in order to cancel your business license?
Your company form and structure is what decides the procedure for license cancellation. Such procedures are quite easier for sole proprietorship and establishments. This is because all that a company needs are to apply for the cancellation of the license through DED and getting all the needed clearance forms.
Companies with shareholders have to go through long processes because before finalizing the real estate dispute, they have to clear all the debts and liquidate the shares properly.
What are the steps to deregister all types of companies (civil companies not included)?
The process of deregistering a company involves two major stages;
- Preparing the minutes of the assembly in order to confirm the liquidation of the company in Dubai and the appointment of the liquidator
- Arranging the official letter for accepting the duty by the registered liquidator
- Applying for cancellation of the licenses by filling the forms through DED or through other proper mediums
- Getting a certificate for the liquidation issued by DED
- Publishing the liquidation notice in 2 local newspapers of UAE
- Submitting the claims after getting the grace period of 45 days.
- Submitting a declaration letter to DED from the liquidator as well as the partners of the company in order to indicate no objection from any of the concerned parties.
- Collecting the necessary approval from the government entities for deregistering the company and cancelling the license
- Cancelling the firm card of the company at the Ministry of Human Resources and Emiratisation.
- Cancelling the visas of the foreign partners which were sponsored by the company at General Directorate of Residency & Foreigners Affairs
- Submitting all the above-mentioned documents for getting the approval for final deregistration.
- Paying the fee
- Receiving the deregistration or cancellation certificate after paying the fee.
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Steps required for deregistering a civil company
- Filling the cancellation or deregistration form
- Cancelling the firm card of the company. This needs to be done at the Ministry of Human Resources and Emiratisation.
- Cancelling the visas of the foreign partners at the concerned General Directorate of Residency & Foreigners Affairs
- Collecting the cancellation approvals
- Preparing a contract for the partnership cancellation. Note that it should be authenticated as well by the notary public
- Submitting the above-mentioned documents and collecting the certificate of license cancellation.
Steps required for Deregistering a sole proprietorship license
This requires to obtain a no objection certificate from the Ministry of Human Resources and Emiratisation along with a cancellation proof of the residence (for non-gulf residents).
Avoid fines and penalties
There are a lot of people who do not go through the legal processes of deregistering companies. They rather just stop paying the fees for renewing the license after their expiry date is reached. People need to know the fact that they may have to face heavy penalties and fines for not paying the fees. Therefore, it is better to deregister the company rather than not paying the fees.
Farahat and Co. Top Company Liquidator
Liquidation of company and cancellation of license requires both accuracy and efficiency. You will get the experts of the respective fields at Farahat and Co. Apart from HR, payroll and audit services FAR help you in deregistering your company. It will guide you throughout the path in order to make sure that you do not stress out over things.
We all know the fact that how difficult it is to go through the troubles of liquidating the company. That is why FAR takes the full responsibility for carrying out all the duties for liquidating the company. From paying the debts and settling each and everything, it will be by your side no matter what. That’s what makes it the best firm to count on when you want to deregister your company in UAE.