Licences & changes
Cancelling a trade licence properly
Cancel the visas, settle the staff, clear the authorities, then the licence. Abandoning it instead leaves penalties accruing against shareholders who believe the company is closed.
What it covers
What this licence actually permits.
Cancelling a licence is a defined process rather than an omission. Dependants' and employees' visas are cancelled first, since the establishment file cannot close while people are sponsored under it. End-of-service dues are settled. Clearances are obtained from the authorities the company deals with — immigration, labour, customs where registered, utilities, the landlord and the bank. Corporate tax and VAT deregistration are applied for. Only then is the licence itself cancelled, and for mainland companies a liquidation process with a liquidator's report may be required.
Abandonment is the expensive alternative and it is common. Owners stop trading, stop paying, and assume the licence lapses into nothing. It does not: renewal penalties accrue, the corporate tax deregistration deadline passes with its own escalating fine, employees may remain sponsored with liabilities attached, and the shareholders acquire a record that surfaces when they try to incorporate something new or apply for a visa. Closing properly costs a defined amount over a defined period. Abandoning costs an undefined amount over an indefinite one.
At a glance
- Order
- Dependants, employees, then the establishment file, then the licence
- Employee dues
- End-of-service settlement before cancellation
- Clearances
- Immigration, labour, customs, utilities, landlord, bank
- Tax
- Corporate tax and VAT deregistration, each with its own deadline
- Mainland
- Liquidation process and liquidator's report may be required
- Abandonment
- Penalties accrue and attach to the shareholders
What it costs
The procedure
What the amendment involves.
- Cancel dependants and employee visas firstThe establishment file cannot close while anyone is sponsored under it.
- Settle end-of-service duesGratuity, notice, accrued leave and outstanding wages. These rank ahead of shareholders.
- Obtain the clearancesImmigration, labour, customs, DEWA, landlord and bank. Each is a separate confirmation.
- Deregister for corporate tax and VATCorporate tax within three months of cessation; VAT within its own window. Both carry penalties.
- Cancel the licence and keep the recordsThe retention obligation survives the company, so arrange storage before everyone disperses.
Related
Questions
Penalties accrue, tax deregistration deadlines pass with their own fines, sponsored employees may remain attached, and the record follows the shareholders.
Dependants and employee visas, employee settlements, authority clearances, tax deregistration, then the licence itself.
Mainland companies commonly require a formal liquidation with a liquidator's report. Free zone procedures vary by authority.
Typically several weeks to a few months, driven by the clearances and by how quickly employee matters are settled.
One question
What are you actually trying to change?
Name, activity, manager or address — each is a formal amendment with its own fee, and most require a fresh MOA addendum before the licence is reprinted. Bundling several amendments into one submission usually costs less and takes no longer than doing them one at a time.
How amendments runOr just ask usShare transfers are notarised, not administrative. Every shareholder signs or is represented under an attested power of attorney, the bank has to be told, and the UBO register updates within days rather than at the next renewal.
Transferring sharesOr just ask usThen do it properly rather than letting the licence lapse. An abandoned company accrues renewal penalties, immigration liabilities and a corporate tax deregistration fine, and it blocks the shareholders from clean incorporations later.
Closing down cleanlyOr just ask us