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Guide to Trade License Cancellation in DMCC

Guide to Trade License Cancellation in DMCC

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Guide to Trade License Cancellation in DMCC

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  1. GuidetoTradeLicenseCancellation inDMCC 27thSeptember2022 NomatterwhatkindofbusinessyouoperateintheUAE,youarerequiredtorevokeyour businesslicenseandanyrelevantpermissionsassoonasyoudecidetoshutitdown.The proceduresforproperlyendingyourbusinessandTradeLicenseCancellationin DMCCaresummarizedinthisarticle. DMCCCompanyTermination Whenafirmorbusinessisnolongerabletooperate,itmustwinddownoperationsthrough a process called company liquidation. This is sometimes referred to as DMCC license cancellationandtermination.Ineachzone,therearedistinctproceduresandstandardsfor liquidation. DMCC has different liquidation procedures and rules than any other zone. The process of dissolving a business involves a lot of paperwork and legal labor. A DMCC liquidatormakescomplicatedworksimpleandaidsthebusinessintheliquidationprocess. The company is helped to wind up in line with UAE company legislation by the DMCC approvedliquidator.Thecourtorthepartiesinvolvedmayappointaliquidator. ImportanceandRoleofDMCC Licenses OneofthemostpowerfullicensesintheUAEisaDMCClicense,whichiswell-knownby numerousauthorities,includingbanks,governmentregulatorybodies,lawenforcement

  2. agencies,andothers.OnceithasbeenissuedintheUAE,itisstraightforwardforyouto continuewithyourregularcompanyoperations. • TheJumeirahLakesTowers-basedDMCC(DubaiMultiCommoditiesCenter),whichwasbuilt forcommerce,containseverythingyouneedtolaunch,develop,andexpandyourbusiness. ThreetimesnamedintheFinancialTimesmagazine’s“GlobalFreeZoneoftheYear,”DMCC is home to a thriving community, cutting-edge infrastructure, first-rate services, and a desirable selection of properties, all just minutes from first-rate air, sea, and road connectionstotherestoftheglobe. • Why IsItNecessary to CanceltheLicenseUponBusiness Closure? • Toavoidanyaccruedfinesandpenaltiesinflicteduponyourlicense,whenitisnotrenewed atthetimeofexpiration,pertinentgovernmentalorganizationsmustbeawarethatyouare nolongeroperatingthebusiness,andthewindupofDMCCcompanybecomescrucial. • Inashareholdingbusiness,itiscriticaltoreleaseyourobligationstopartnersandcreditors whilesafeguardingyoursharesandinterests.Ifyoudecidetostartanewfirm,it’sagood ideatokeepinmindyourgoodwillandprofessionalreputation. • FormstoCompleteforCompany Termination inDMCC. • Depending on how your firm is set up, the license may be revoked. The process is straightforward for businesses and sole proprietorships because all that is required is to submitanapplicationforcancellationthroughDEDandobtainthenecessarycertifications fromthefollowing: • ResidencyandForeignersAffairsDirectorate, • therelevantwaterandelectricityauthority,theleasingentity,etc. • MinistryofHumanResourcesandEmiratization • Forcompanieswithshares,theprocesstakeslongersince,beforefinalizingwithDED,the sharesmustbeliquidated,debtsmustbegathered,andcreditorsmustbepaid. • ProceduretoCloseaCompanyinDMCC • TheDMCCwebsiteliststhreedifferenttypesofclosuresforcompanyliquidationinDMCC asfollows: • Summarywindingupisanoptionwhenacompanyhasnodebtsorcanpayoff allofitsdebtswithinsixmonths.Itstartswithastatementofsolvency. • Thecorporationcanwindupitscreditorsbyadoptingaresolutiontodoso, whichisfollowedbyameetingofthecreditors. • ByUAECommercialTransactionsLawNo.18of1993,thecourtmaydeclare bankruptcy.

  3. MorethanjuststoppingoperationsisinvolvedinDMCCcompanyliquidation.Applyingto closeabusinessinDMCC/DMCCliquidationrequiresusingthememberportal.Asaresult of submitting the company termination application, the Directors’ powers, obligations, and liabilities will be ended. The application will be looked at and dealt with. A notice will then appearintheneighbourhoodArabicnewspaper.TheDMCCauthoritieswillthendocument the company’s formal termination and issue letters of termination for trade license cancellation. Youmustalwaysrevoketheworkers’workauthorizationsandvisas.AccordingtoDubai Portal, this calls for collaboration with both the Ministry of Human Resources and EmiratizationandtheDepartmentofNaturalizationandResidency. Employersarerequiredtoprovidetheiremployeesatwo-month,paidnoticeperiod beforeterminatingtheircontractsundertheUAE’sLabourLaw.Inmanycircumstances, workersarepermittedtopreservetheirresidencypermitsuntiltheexpirationofthe business’stradelicense.Thecorporationmustthenterminateitstelecommunicationsand utilityservices.ObtainaNOCfromtheentitydeliveringtheutilitiestoprocesstheclosure. Also,liquidationservicesinDMCChelptoprepareliquidatorreports,auditreports,and statementsofaffairs. Choosethe BestTradeLicenseCancellationServices TheprocessofliquidationcanbeeasilycompletedintheDMCCwiththeassistanceof aDMCCapprovedliquidator.Ourexpertsareavailableathandtoprovidethebest liquidationservicesandcompleteguidanceduringtheprocess.

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