Is trade licence cancellation mandatory when closing a business in Dubai?

Yes. Cancelling a trade licence is a legal requirement for any business that has ceased operations. If a licence is not cancelled through the DET, the company continues to accumulate fines and remains liable for outstanding obligations, including labour, visa, and tax responsibilities.

How long does the trade licence cancellation process take?

The timeframe depends on the legal structure of the company. For sole establishments and civil companies: 40–60 days. LLCs and companies requiring liquidation: 60–90 days due to the 45-day newspaper notice period. The timeline for branches depends on the complexity of their clearances.

Do all companies need a liquidator to cancel their trade licence?

No. Only companies with share capital—such as LLCs, Private Joint Stock Companies, and Public Joint Stock Companies—must appoint a licensed liquidator. Sole establishments, civil companies, and branches do not require liquidation but must still obtain all mandatory government clearances.

Do I need to cancel employee visas before cancelling the trade licence?

Yes. All employee visas and labour cards must be cancelled through the GDRFA and MOHRE before the DET will approve the licence cancellation. Any remaining active visas will prevent the company from being deregistered.

Is a newspaper announcement required for all licence cancellations?

A newspaper announcement is required only for companies undergoing formal liquidation, such as LLCs. It must be published in two Arabic newspapers and remain open for 45 days to allow creditors to submit claims. Companies with licences that have expired for more than two years follow a shortened 15-day notice period.

Can a trade licence be cancelled if shareholders are outside the UAE?

Yes. Shareholders may authorise a representative to complete the process on their behalf. A notarised and attested Power of Attorney (PoA) must be issued, allowing the representative to sign liquidation documents and submit the cancellation request.

Do I need tax clearance before cancelling a trade licence?

Yes. If the company is registered for VAT or Corporate Tax, it must submit final returns and complete deregistration with the Federal Tax Authority before the DET will finalise the cancellation.

Cancel Your Dubai Trade Licence – Fast, Legal Closure with EGSH

Name: Trade Licence Cancellation
Brand: EGSH

Trade Licence Cancellation Services in Dubai

Complete Licence Termination for Mainland and Free Zone Companies

EGSH is an authorised centre that carries out trade licence cancellations in Dubai in accordance with the procedures of the Dubai Department of Economy and Tourism (DET). We handle the required steps, including document preparation and clearance coordination.

Clients obtain support with drafting the cancellation or liquidation documents, completing DET-mandated clearances, and submitting the application to receive the official Trade Licence Cancellation Certificate.

Why EGSH:

Authorised centre integrated with DET
Submission through official government systems
Same-visit document review and guidance
Transparent, government-regulated fees

The DET issues the cancellation certificate after verifying all clearances and documents.

Complete Licence Termination for Mainland and Free Zone Companies

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Visit our authorised centre during working hours—no prior appointment is required. You may also book your visit online at a convenient time.

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A full description of the invention, defining the problem solved, how it works, and the scope of protection you seek (claims), prepared according to the MoE’s patent-drafting standards.

Abstract and Supporting Drawings

A concise abstract summarising the invention, along with labelled technical drawings or diagrams that illustrate the structure, method or process being patented.

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Passport copies, Emirates ID (if applicable), and details of all inventors and applicants. For corporate applicants, a trade licence and authorised-signatory documentation are required.

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What Is Trade Licence Cancellation in the UAE

Trade licence cancellation is the official procedure for legally closing a business in Dubai and removing its record from the Dubai Department of Economy and Tourism (DET) commercial register. It is a mandatory step for all mainland companies. It must be completed to stop future fines, prevent licence renewal penalties, and ensure that the business no longer carries legal or financial obligations in the UAE.

The cancellation process varies depending on the company’s legal structure.

Sole establishments and civil companies follow a simplified closure procedure after obtaining the MOHRE and GDRFA clearances.
LLCs and companies with share capital must undergo formal liquidation, including appointing a licensed liquidator, issuing a liquidation notice in two Arabic newspapers, completing a 45-day creditor period, and submitting the liquidator’s reports.
Branches of local, foreign, or free zone entities must also provide a parent company resolution approving the branch closure.

Once all clearances, liquidation steps, and regulatory requirements are completed, the DET issues the official Trade Licence Cancellation Certificate, confirming that the business has been deregistered and is no longer active in the UAE.

When Trade Licence Cancellation Is Required

Trade licence cancellation is required whenever a business permanently stops operating in Dubai and intends to remove its legal presence from the DET commercial register. UAE law obliges all businesses to cancel their licences formally to prevent the accumulation of fines, avoid future liabilities, and ensure that no obligations remain with shareholders, managers, or authorised signatories.

Cancellation is required in the following cases:

Permanent Business Closure — When a company ceases operations and does not intend to renew or continue trading activities.
Company Liquidation — Limited Liability Companies (LLCs), Public Joint Stock Companies (PJSCs), and companies with share capital must complete liquidation, settle liabilities, publish a creditor notice, and submit liquidator reports before the DET will cancel the licence.
Closure of a Branch — Branches of local companies, foreign companies, or free zone entities must cancel their Dubai branch licence when the parent company resolves to close the branch.
Non-Operational or Dormant Companies — Even if the company has never traded or has remained inactive, the licence must still be cancelled to avoid penalties.
Expired Licences (Over Two Years) — Companies with licences expired for more than two years must follow the DET’s special cancellation procedure, including partner undertakings and reduced notice periods.

By completing the cancellation process through the DET, the business is officially removed from government systems, and shareholders are protected from future financial or legal consequences.

Types of Trade Licence Cancellation in Dubai

The procedure for cancelling a trade licence in Dubai depends on the company’s legal structure and whether the business is required to undergo formal liquidation. The DET applies different requirements to ensure that all financial, legal and employment obligations are properly resolved before the company is removed from the commercial register.

1. Cancellation Without Liquidation (Sole Establishments and Civil Companies)

Sole establishments and most civil companies are not required to appoint a liquidator. These entities follow a simplified closure procedure, which includes cancelling labour cards, cancelling visas, settling outstanding obligations, and obtaining all required government clearances before the DET issues the cancellation certificate.

2. Standard Liquidation (LLCs and Companies With Share Capital)

Limited Liability Companies, Private Joint Stock Companies, and other entities with share capital must complete formal liquidation. This includes a notarised shareholders’ resolution appointing a licensed liquidator, issuing a liquidation notice in two Arabic newspapers for 45 days, and submitting preliminary and final liquidator reports before the DET approves the licence cancellation.

3. Branch Closure (Local, Foreign and Free Zone Entities)

Branches must follow branch-specific cancellation rules. In addition to standard clearances, an attested parent company resolution approving the branch closure is required. Branches do not undergo liquidation themselves but must demonstrate that all liabilities, visas and contractual obligations have been settled.

4. Special Cancellation for Licences Expired for More Than Two Years

Companies with licences expired for over two years follow a different procedure. The local partner must provide an undertaking accepting liability, supporting documents (such as proof of partner absence), and a 15-day newspaper notice. The DET may approve cancellation after verifying that no liabilities remain.

Eligibility and Requirements for Trade Licence Cancellation

Before a trade licence can be cancelled in Dubai, the Dubai Department of Economy and Tourism (DET) requires all companies to fulfil a set of regulatory, financial and administrative obligations. These conditions ensure that no liabilities remain under the company’s name and that all employees, creditors and contractual obligations have been properly settled.

Businesses must complete the following:

Labour and Immigration Clearances
All employees’ labour cards and work permits must be cancelled through the MOHRE, and all visas linked to the company must be cancelled through the GDRFA.

Utility and Tenancy Closure
Companies must obtain final settlement and clearance from the Dubai Electricity and Water Authority (DEWA, Etisalat/Du) and the property landlord. The Ejari tenancy contract must have expired or been formally closed.

Financial and Tax Obligations
Corporate bank accounts must be closed, outstanding payments must be settled, and VAT deregistration must be completed where applicable.

Liquidation Requirements (for LLCs and Companies with Share Capital)
A shareholders’ resolution approving liquidation must be notarised, a liquidator must be appointed, and both the preliminary and final liquidator’s reports must be submitted after the 45-day creditor notice period.

Parent Company Resolutions (for Branches)
Branches of local, foreign or free zone companies must provide an attested parent resolution approving the branch closure.

Meeting these prerequisites ensures that the DET can legally issue the final Trade Licence Cancellation Certificate and remove the company from the commercial register.

Special Rules for Licences Expired More Than Two Years

Companies whose trade licences have expired for more than two years are subject to a special cancellation procedure under the DET regulations. This process is designed to close long-inactive businesses while ensuring that all liabilities and partner obligations are correctly documented and discharged.

Unlike standard cancellation and liquidation procedures, the DET applies reduced notice periods and additional declarations to verify that the company has genuinely ceased operations and that no outstanding claims remain.

Partner Liability Undertaking
The Emirati partner must submit a formal undertaking acknowledging full responsibility for any liabilities associated with the company. This declaration is mandatory and must accompany the cancellation request.
Supporting Evidence of Inactivity
The DET requires documentation explaining the reason for the prolonged inactivity, such as proof that a partner has remained outside the UAE for more than six months or evidence that the partner’s whereabouts are unknown.

15-Day Newspaper Notice
Unlike the standard 45-day liquidation notice, companies with long-expired licences must publish a dissolution notice in an Arabic newspaper for 15 days. This shortened period allows any creditors to submit claims before final closure.
No-Liability Undertaking
The company must sign an undertaking confirming that it has no outstanding debts or pending obligations. This statement is submitted through an authorised service centre as part of the DET audit process.
Labour Card Cancellation Requirement
All labour cards and work permits must be cancelled through the MOHRE before the DET will approve the final cancellation, even if the company has been inactive for several years.

Once these requirements are fulfilled and the DET has verified the documentation, the authority issues the official cancellation certificate, confirming the deregistration of the business.

How the Trade Licence Cancellation Process Works

Trade licence cancellation in Dubai is carried out through a regulated sequence overseen by the Dubai Department of Economy and Tourism (DET). The exact procedure depends on the company’s legal structure, but all cancellations follow the same core workflow to ensure legal closure and removal from the commercial register.

Liquidation Decision and Documentation (if applicable)
LLCs and companies with share capital must be formally liquidated. The shareholders issue a notarised resolution confirming liquidation and appointing a licensed liquidator, who then prepares the preliminary liquidation report.
Publication of the Liquidation Notice
The DET requires the company to publish a liquidation announcement in two Arabic newspapers, allowing creditors a 45-day period to submit claims.
Completion of Clearances and Final Liquidation Report
All labour cards and visas are cancelled through MOHRE and GDRFA. Utilities, telecommunications, tenancy contracts, and financial obligations must be settled, and the liquidator submits the final report confirming that no objections or outstanding liabilities remain.

Submission to the DET and Issuance of the Cancellation Certificate
After the DET reviews all clearances, notices, and liquidation documents, the authority issues the official Trade Licence Cancellation Certificate, confirming that the business has been deregistered and legally closed.

This regulated process ensures that the company is removed from all government systems and that shareholders and managers are released from future liabilities.

Official Government Fees for Trade Licence Cancellation in Dubai

Trade licence cancellation fees in Dubai are applied directly by the Dubai Department of Economy and Tourism. The total cost depends on the company’s legal structure and whether liquidation is required. All fees must be paid through DET-authorised payment channels.

Mandatory DET Fees

Licence Cancellation Fee – AED 1,020
Required for cancelling the trade licence of any company or branch.
Company Dissolution Fee – AED 2,520
Applies to all commercial companies undergoing liquidation, including LLCs and companies with share capital.

Liquidation-Related Costs

Newspaper Announcement (Two Arabic Newspapers)
Required for companies undergoing formal liquidation. Publication cost varies depending on the newspaper.
Additional Regulatory Fees (Where Applicable)
Labour card cancellation (MOHRE) – varies based on workforce size
Visa cancellation (GDRFA) – standard immigration fees apply
Attestation of shareholders’ resolution (notary fees)
Liquidator’s professional fees for preliminary and final reports
Knowledge Fee & Innovation Fee – AED 20 per transaction
Payment Options
Department of Economy and Tourism in Dubai allows payment via:
Direct debit at Dubai Islamic Bank, Commercial Bank of Dubai, Emirates Islamic
Cash or cheque at Aafaq Islamic Finance, Noor Bank, Commercial Bank of Dubai, Emirates Islamic

EGSH provides a full fee calculation before submission, so clients know the exact cost of their trade licence cancellation.

Department of Dubai Economic Services at EGSH

Explained by

Shaimaa Sayed Qasem

Department of Dubai Economic Services at EGSH

Shaimaa Sayed Qasem is a dedicated service provider at the Department of Dubai Economic Services at EGSH, with seven years of experience delivering business services, supporting clients and ensuring compliance with regulatory requirements.

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Frequently Asked Questions About Trade Licence Cancellation in Dubai

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Went there for a consulting. Booked an appointment in advance thro their website. Came early — no line — which is good. Very pleasant interior. My consultant Rachel, was polite. Answered all my questions. Can’t judge regarding the process once applied for an exact service, but consulting went well.

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