License Freezing
About License Freezing
At times, your business may require a hiatus, during which you have the option to suspend your trade license for up to three years. Learn how to suspend your UAE mainland license.
If you’re operating in the UAE and considering a temporary cessation of business activities, the optimal choice is to suspend your business license. Suspension can be initiated for a maximum period of three years by paying a freezing fee. For sole establishments registered in DED, suspension is permitted for up to one year.
Once a license is suspended, the company is prohibited from conducting any operations, as it would be unlawful to do so. However, the owner of a suspended license or a shareholder retains the option to establish a new business by applying for a fresh license under their name.
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Procedure
- Issue a letter on the corporate letterhead requesting to freeze the license temporarily. The letter should contain details on the reasons and justifications behind the decision.
- Cancel all employment visas.
- Obtain a confirmation letter from the Ministry of Human Resources and Emiratisation mentioning that there are no sponsored people on the license. The letter must also confirm that labour restrictions are not imposed on the license.
- In the case of DED, the freezing fee of AED 2,000 per year along with AED 210 per each due month since license expiry date must be paid after application. A report from the inspection division in DED must also be submitted.
How can we assist in altering your trade license?
We facilitate the processing of license modifications, ensuring minimal disruption to your business operations. Whether you’re making minor adjustments or require multiple amendments, we oversee the entire procedure to ensure a swift and effortless process.