From winding-up to license cancellation, Reyson Badger offers complete UAE liquidation services with full compliance, transparency, and efficiency.
Get Your Free Consultation Today!Whether you operate an LLC, a Partnership, or a Sole Proprietorship in the UAE, cancelling your trade license (and any related licenses) is a critical step when closing a company. This process is not just a formality, it ensures compliance with UAE laws, clears your financial and legal obligations, and protects you from future liabilities.
At Reyson Badger, we assist businesses across Dubai, Abu Dhabi, Sharjah, and other Emirates in completing the trade license cancellation process smoothly. Our experts ensure compliance with UAE laws, coordinate with government departments, and handle every step on your behalf.
As per Federal Law No. 2 of 2015 (Articles 306–326), a business may be dissolved if:
When a business no longer wishes to operate, canceling the trade license is a legal requirement in the UAE. Without it, the license may continue to accrue penalties, immigration fines, or tax obligations. Proper closure ensures:
Reyson Badger ensures that your company’s exit from the UAE market is transparent, compliant, and stress-free.
For businesses registered with the Department of Economic Development (DED), license cancellation involves multiple steps, including final audit reports, visa cancellations, labor clearance, and approvals from government authorities.
Free zones such as DMCC, JAFZA, IFZA, Shams, and Dubai Silicon Oasis (DSO) follow their own procedures for license cancellation. The free zone authority requires NOC from utilities, employee visa cancellation, and clearance of financial obligations.
There are two steps to cancel your trade license in UAE.
First step
Secondary step
After submitting all clearances and paying the required cancellation fees, the competent authority issues the trade-license cancellation certificate.
To cancel a trade license in the UAE, you must provide:
Additional clearances from labour, immigration, banks, utilities, or leasing authorities may also be required, depending on the business type.
To officially cancel your LLC trade license, you must obtain several no-objection certificates (NOCs) and clearances from key UAE authorities. This ensures that your business has fulfilled all legal, tax, and immigration obligations. These may include:
If your company is VAT-registered or has filed tax returns, you must:
Failing to cancel VAT registration before license cancellation may result in penalties.
If your business had a physical office, warehouse, or retail outlet:
The trade license cancellation and liquidation process usually takes 60 to 90 days, depending on the type of business, document readiness, and authority approvals.
Key timeframes:
Neglecting to cancel your trade license can result in serious consequences:
To maintain a clean legal and financial record, it’s crucial to complete the trade license cancellation and liquidation process properly.
The total cost of cancelling an LLC trade license in the UAE is not a single fixed fee. It is a combined cost that depends on the company’s structure, number of employees, licensing authority, and whether there are any outstanding obligations. The overall cancellation cost generally includes trade license cancellation fees, labour card cancellation charges (if applicable), government clearances, and professional service costs.
Trade license cancellation fees are charged by the Department of Economic Development (DED) for mainland companies or by the relevant Free Zone Authority for free zone companies. These fees cover the official closure of the business license and administrative processing with the licensing authority. The exact amount varies based on the emirate, license type, and business activity.
Labour card cancellation fees apply only if the company has active employees registered with the Ministry of Human Resources and Emiratisation (MOHRE). Each employee’s work permit and labour card must be formally cancelled before the trade license can be closed. For mainland companies, this process is completed through MOHRE, while for free zone companies, employee cancellations are handled through the respective free zone authority. The cost depends on the number of employees and the status of their employment contracts and is charged separately from the trade license cancellation fee.
For mainland businesses, DED license cancellation fees form part of the overall closure process. These fees relate specifically to closing the company’s license with the Department of Economic Development after completing all required clearances from labour, immigration, tax, and other government authorities.
In addition to license and labour-related fees, the total cancellation cost may also include:
On average, the cancellation of an LLC trade license in the UAE may range between AED 8,000 and AED 15,000, depending on the company’s size, number of visas, regulatory requirements, and outstanding liabilities. At Reyson Badger, we provide transparent cost estimates before starting the trade license cancellation process, ensuring businesses have a clear understanding of all applicable fees and obligations.
If your company operates under a UAE Free Zone (e.g., DMCC, JAFZA, RAKEZ, or DAFZA), the process involves similar steps, but with Free Zone-specific procedures and documentation.
With Reyson Badger, you can focus on your next venture while we ensure your business closure is handled professionally.
At Reyson Badger, we simplify the company liquidation and trade license cancellation process for you. Our experts handle documentation, government clearances, and approvals, ensuring a smooth and stress-free experience.