Trade License Cancellation in RAK Free Zone (RAKEZ)

Trade License Cancellation RAK Free Zone | Fee, Procedure, and Requirement

Cancelling a business license in a free zone does not simply mean the cessation of operations. In Ras Al Khaimah Economic Zone (RAKEZ), trade license cancellation is an official de-registration process that must be properly completed to avoid fines, visa issues, and future compliance problems.

This guide explains how to cancel a trade license in RAK Free Zones, common reasons for cancellation, timelines, penalties, and legal implications in a way that is easy to understand.

Thinking of Closing Your Business in RAK Free Zone?

If your business is no longer active or generating revenue, delaying cancellation can lead to:

✔ Daily fines
✔ Visa penalties
✔ Compliance risks
✔ Future licensing issues

Acting early helps you save costs and avoid legal complications. Book Consultation

What is the RAK Free Zone Trade License Cancellation?

RAK free zone trade license cancellation entails the formal closure and de-registration of a company licensed under the RAKEZ authority. Once this process is complete, the company is officially stricken off the records of RAKEZ, and the company is formally closed, subject to proper settlement of liabilities.

The process involves:

• Settling liabilities
• Visa cancellation
• Clearing dues with the government
• Filing documentation for deregistration

Failure to do so may lead to the fines for trade licenses expiry fines and other compliance risks.

When your business comes to an end of operations in Ras Al Khaimah, Trade License Cancellation in the Ras Al Khaimah Free Zone (RAKEZ or RAK Free Zone) is crucial to avoid paying fines and running into problems with outside authorities.

You may deregister your company license by following the step-by-step instructions provided below.

What is the Procedure for Trade License Cancellation in RAK Free Zone (RAKEZ)?

Step 1: Submit the Required Documents and a Company De-Registration Application

A completed application form must be submitted to any RAK Free Trade Zone office with clearance documentation from the following authorities before terminating and formally de-registering your license.

• RAK Customs (for a warehouse and a parcel of land)
• Chamber of Commerce in RAK (if applicable)
• Emirates Post (cancellation of corporate postal ID)
• Du or Etisalat (if applicable)
• Authority for Federal Electricity and Water (if applicable)
• Traffic Division (if any cars are registered in the business’s name)

Step 2: Payment of Fees

After submitting the Company de-registration application and the necessary paperwork, you will get an invoice. The next step is to pay the fees.

Step 3: Submission of Visa Cancellation Form

To formally end your business file with the RAK Immigration Authority, all visas under the firm must be revoked. Consequently, you should submit a request for a cancelled visa to one of our Government Services agents.

Step 4: Issue of Company De-Registration Letter

Following the payment’s completion and submission of the visa cancellation request, RAK FTZ will publish a legal notification for 7–14 days depending on structure in a local Arabic newspaper (if applicable). If no problems or complaints arise within the publishing time, RAK FTZ will send a Company de-registration letter.

Conditions and Prerequisites

1. For individual businesses, a notice shall be published for one week in one of the recognized publications, and for partnerships, the Declaration of Partnership Dissolution should be issued for two weeks (in the case of companies).
2. The license holder’s attendance is required.

What Documents Required for Cancellation of License in RAK Free Zone?

1 . The Owner, Shareholder(s), or Authorized Representative Must Properly Complete and Submit the Application

(This might be done by either filling out the application form or applying using the client portal account.)

A. In the Case of a Free Zone Establishment (FZE)

In the event of a Free Zone Establishment (FZE), the Owner’s Declaration requesting Company de-registration must be filed and signed by the Owner or Authorized Representative. Such declaration must be:

• Signed before an Authority,
• Notarized by a UAE notary public, or
• Notarized and legalized up to the level of the UAE Embassy, and
• Presented in original format

B. In the Case of Free Zone Establishment (FZ- LLC)

In the case of a Free Zone LLC (FZ-LLC), a Shareholders’ Resolution requesting the Company de-registration and the justification must be presented and signed by the Shareholder (s) or Authorized Representative. Such Resolution must be:

• Signed before the Authority,
• Notarized by a UAE notary public, or
• Notarized and legalized up to the level of the UAE Embassy, and
• Presented in original format.

C. In the Case of a Branch or Subsidiary

In the event of a branch or subsidiary, a corporate resolution requesting the Company de-registration, together with the explanation, must be:

• Printed on the parent company letterhead,
• Sealed with the company seal, and
• Signed by all of the parent company’s shareholders with the official Proof of Ownership.

Suppose the Board of Directors signs the Corporate Resolution. In such a scenario, it is necessary to submit the official list of directors and the Authority to act on behalf of the parent company’s shareholders.

It is to be noted that Corporate Resolutions should be filed in original format and notarized and legalized up to the level of the UAE Embassy.

2. A Letter of Termination Signed by the Owner, Shareholder (S), or Authorized Representative

A letter of termination signed by the Owner, Shareholder (s), or authorized representative attesting to the payment of all sums owed to the general manager and assuming responsibility for any future claims or disputes from the general manager, or a letter of resignation signed by the appointed general manager attesting to receipt of all sums due from the company.

(This applies if the General Manager is neither the Owner nor a Shareholder.)

3. Return the Original License (If Valid)

4. The Owner, Shareholder(s), or Authorized Representative Must Correctly Complete and Submit the Exit Survey

5. Approvals From the Following Agencies and Departments:

• RAK Customs (in the event of a warehouse and land or plot)
• RAK Chamber of Commerce (if applicable)
• Approval from the Department of Environment Protection (in case of Industrial Licenses)
• Clearance from Emirates Post Office – Cancellation of Company Postal ID (if applicable)
• The telecom company (Etisalat/Du) (if applicable)
• Federal Electricity and Water Authority (if applicable)
• Traffic Department (if any vehicles are registered in the business’s name) (if applicable)
• The Environmental Protection & Development Authority (EPDA) and the Department of Civil Defense demand NOCs from businesses with industrial activities.

RAKEZ License Cancellation Fee

Note: The above fees and procedures can change, it’s advisable to consult the official RAKEZ website or consult with us for details.

How May Farahat & Co. Assist You?

Farahat & Co., registered company liquidators in the UAE, can help business owners dissolve their corporations in any of the nation’s mainland and free zones company liquidation.

Our personnel will assist the business owner with the proper company liquidation procedures depending on the business jurisdiction and guarantee that the company liquidation complies with UAE Company Law.

To avoid penalties or future admission restrictions, entrepreneurs must quickly liquidate their companies following UAE Free Zone jurisdictional legislation.

If you want to close your RAK-free zone business, choose Farahat & Co., a qualified company liquidator in the UAE. Contact us to find out more.

What are the Common Reasons Businesses Cancel Trade Licenses in RAK Free Zones ?

Businesses may undertake the closure of their Ras Al Khaimah Free Zones operations for several practical reasons, including:

• Inactivity or no generation of income from the business activity
• Either strategic restructuring or relocation to another emirate
• Completion of a project-based business
• Shareholder or partner exit
• Financial constraints or cost optimization
• Mergers with any other body
• Change in business model requiring new license

RAKEZ requires the formal cancellation of a license by the businesses, even in cases where it has ceased operations.

What is the RAK Free Zone Trade License De-Registration Process ?

Generally, the de-registration process for a trade license under RAKEZ includes:

• Internal decision for winding up the company
• Liquidation of accrued liabilities, including suppliers and service providers
• Visa cancellation in RAK for employees, partners, and dependents
• Submission of de-registration documents with RAKEZ
• Final approval by RAKEZ authority
• Issuance of confirmation of closure of business

Each step should be done in the proper sequence as required.

What is the Recommended Timeline for Cancellation (RAK Free Zone) ?

The following is a timeline recommended to complete the process without any hiccups:

Total Estimated Timeline: 3–6 weeks

(This may take more or less time, depending on a number of visas, unsettled dues, and structure of the company.)

Why Timing Is Everything When It Comes to the Cancellation of RAKEZ License ?

Timing has a major role in RAKEZ compliance. Delays can result in:

• Automatic license renewal fees
• Accumulation of trade license expiry fines
• Visa overstaying penalties
• Constraints on shareholders for future businesses in UAE

Initiating the annulment in advance of license expiration helps reduce the costs of involvement and legal exposure.

What are the Penalties for Non-Proper Cancellation of a RAK Free Zone Trade License ?

Some of the consequences that a business might potentially face due to failure to complete free zone company deregistration include:

• Daily or monthly fines due to expired licenses
• Visa overstaying penalties
• Blacklisting of shareholders or managers
• Possible difficulty in obtaining future UAE licenses
• Any outstanding compliance matters are to be settled with the RAKEZ authority.

Ignoring the process does not eliminate liability – quite the contrary; it increases it.

What are the Legal Consequences of RAK Free Zone Trade License Cancellation ?

From a legal point of view, an active license means the company is still in existence, even if it is not operating. Improper cancellation may lead to:

• Ongoing legal responsibility for the debts
• Regulatory action exposure
• Issues with immigration and residency records
• Restrictions upon the formation of future companies

Completion of the RAK business closure process ensures clean legal exit.

Can a Cancelled Trade License Be Reinstated?

Typically, a cancelled RAKEZ license cannot be reinstated. Generally, companies must :

• Apply for a new license
• File new incorporation documents
• Pay new registration fees

This is why businesses must consider cancellation carefully prior to moving forward.

RAKEZ remains committed to continually strengthening compliance and monitoring of such companies. Other recent focus areas include:

• Strict tracking of expired licenses
• Obligatory visa cancellation prior to de-registration
• Clear settlement of liabilities
• More intense compliance checks during closure of businesses

It is significant to stay updated with the requirements of the RAKEZ authority.

Need Help With RAK Free Zone Trade License Cancellation?

Cancelling a RAK free zone trade license can be time-consuming and risky if not handled correctly. Missing steps, visa issues, or unpaid liabilities may result in penalties, delays, or future compliance problems.

Farahat & Co provides end-to-end support for RAKEZ license cancellation, including:

Review of your company status and compliance requirements

• Complete RAK free zone trade license cancellation process
• Visa cancellation and immigration coordination
• Settlement of outstanding liabilities and government clearances
• Documentation preparation and submission to RAKEZ authority
• Timely closure with minimal cost and risk

Our experienced consultants ensure your RAK business closure is completed smoothly, legally, and without unnecessary delays.

Speak to our experts today to close your RAK Free Zone company the right way and protect your future business interests.

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