JAFZA or Jebel Ali Free Zone is one of the most significant Free Zones in the UAE. It pivotally serves a compelling role in the economy and ecosystem of the UAE. Running a business operation in JAFZA free zone is an immense opportunity for businesses, however, it is no exception to business liquidation. Businesses in JAFZA free zone are respectively prone to termination of Trade License. There are multi circumstances that can drive businesses to cancel a trade license. The reasons might include, bankruptcy or the decision of the shareholders to step back and shut down the business completely (liquidation). Company liquidation in JAFZA has become quite a complex procedure since it is camouflaged with complex legal formalities and protocols. Thus, it is highly advised to seek expert consultation from approved JAFZA liquidators to ensure a thorough and seamless process of canceling a trade license in JAFZA.
JAFZA License Termination
In JAFZA, a business owner can only terminate a trade license if he has more than one trade license, for instance, an industrial license and a trading license. The business owner who holds the license has to send a request to the relevant government authority with his signature affixed to the request. All outstanding dues held by the company to various entities like, the Dubai Electricity and Water Authority (DEWA) or the Road and Transport Authority (RTA) must be cleared prior, otherwise, the request for trade license cancellation will not be approved. In JAFZA, the cost or fees for terminating a trade license is 1500 dirhams. However, if your trade license had already expired, then one has to submit an additional 1000 dirhams for every single month after the marked expiration, till the request date for trade license cancellation.
JAFZA Lease Termination
Apart from terminating a trade license, one can also terminate a lease in JAFZA. The only condition to terminate a lease in JAFZA is that you must have at least 2 facilities. For instance, a plot, a warehouse and an office. You have to submit a form for lease termination along with a signed request letter to the relevant department. You have to receive clearance from the JAFZA finance department that all of your outstanding dues have been paid. The lease and license section will require the keys of the facility from the owner which should be submitted. If the keys are lost, the owner has to inform the lease and license department. For visa access purposes, you will need to consult the admin section. If the vacated facility areas are not in a good condition and maintenance is required, the department of lease and license will charge you rent for the period of maintenance.
Requirements for Trade License Cancellation in JAFZA
Following are the general requirements that needs to be fulfilled for trade license cancellation or company liquidation in JAFZA;
- You will need to submit all certificates along with the deregistration form to the registration department.
- You will also need to submit a liquidation report obtained from approved liquidators in JAFZA back to the registration department making sure that all facets are clear from the company’s side and audit reports are complete.
- Lease termination forms and deregistration forms will need to be submitted along with the keys. If additional days are taken for maintenance activities in the facility, the lease and license department will charge rent for that. In case of losing the keys, immediately inform the department of the lease and license is important.
- You will need to obtain various clearances from authorities, such as DEWA or RTA authorities. DEWA clearances are only required if you own a restaurant, shop, plot, or warehouse in JAFZA.
- Clearance or outstanding reports from Etisalat (Emirates Telecommunication Corporation) are also required by the termination department.
- You also need to obtain other essential clearances such as customs clearance from Dubai customs, clearance for visas to make sure all of your sponsored visas are canceled, and clearance from the finance department of JAFZA to make sure that you don’t have any outstanding payments under your company’s name.
- In the final stage, you will be required to advertise that you are closing your company in JAFZA so that if your company owes individuals or entities, they can claim the due amount within 45 days.
Can I cancel trade license if I only have one license?
The process of cancelling a trade license in JFZA is often a complex procedure, since it is camouflaged with complex legal formalities and protocols. It is highly advised that you consult qualified liquidators to ensure a seamless liquidation process. Experts procedures are certified, trusted and top-notch.