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Trade License Cancellation Cost in Dubai: Fees and Requirements

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Trade License Cancellation Cost in Dubai: Fees and Requirements

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Trade license cancellation in Dubai is the legal process of removing a company from the government’s commercial records. It requires approval from the Dubai Department of Economy and Tourism (DET) or the relevant free zone authority. It also involves planning for the trade license cancellation cost in Dubai, including official fees, visa cancellations, and mandatory clearances.

Merely halting business activity does not close a company in Dubai. You must formally cancel a license to avoid paying ongoing renewal fees, handling compliance obligations, and penalties.

This blog explains the cost of canceling a trade license in Dubai, the fees involved, and the documents required. It also outlines the steps businesses must follow to complete license closure in the emirate.

Dubai Trade License Cancellation Fees: Mainland vs Free Zones Costs

Cancelling a trade license, including Dubai and other emirates, involves several costs. These depend on the license type, the number of visas, and pending obligations.

Dubai Mainland Trade License Closure Cost

Cancelling a DET trade license typically costs between AED 3,000 and AED 7,000. Here’s a detailed breakdown:

Cost ComponentTypical Range (AED)Details
DET License Cancellation Fee ~1,020 Standard cancellation fee from the DET.
Company Dissolution / Liquidation Fee ~2,520 Applies when formal dissolution is required (e.g., LLC).
Visa Cancellation (per visa) 100 – 300 Investor, employee, and dependent visa cancellations.
Labor Card Cancellation 100 – 200 MOHRE labor card closure charge.
Office Lease Termination / Ejari 200 – 500+ Lease cancellation or Ejari fees.
Utility & Service Clearance Fees 0 – 1,000+ DEWA, telecom, and other service clearances.
Clearance Certificates (FTA / MOHRE / GDRFA) 0 – 2,000 Businesses must obtain approval from relevant authorities.
Outstanding Fines / Penalties Variable Must be cleared before cancellation.

The trade license cancellation cost in Dubai mainland is straightforward but can vary depending on visas, office leases, and formal dissolution.

Dubai Free Zone Trade License Termination Fees

Cancelling a free zone trade license in Dubai usually costs between AED 2,000 and AED 8,000+. This depends on the specific free zone and additional requirements like visas and clearances.

Cost ComponentTypical Range (AED)Details
Free Zone License Cancellation Fee 1,000 – 3,000+ Base fee charged by most free zone authorities.
Visa Cancellation (per visa) 100 – 300 Fees for investor, employee, or dependent visas.
Utility & Service Clearance Fees 0 – 1,000+ DEWA, telecom, and other service clearances.
Clearance Certificates 0 – 2,000+ Required government and free zone approvals.
Outstanding Fines / Penalties Variable Must be cleared before cancellation.

Free zone cancellation costs can be lower for simple cases with no visas or leases, and higher when audits, liquidation reports, or multiple clearances are involved.

Optional / Situational Costs for Trade License Cancellation in Dubai

Some trade license cancellation costs in Dubai depend on business type and complexity, and do not apply to every company. These depend on the business type, complexity, and services used.

Cost ComponentTypical Range (AED)Details
Newspaper Publication 500 – 2,000 Only the formal liquidation of mainland LLCs requires newspaper publication. Not needed for free zone or simple cancellations.
PRO / Service Provider Fees 1,000 – 5,000+ Optional: professional handling of paperwork, clearances, and submissions.
Bank Account Closure Fees 0 – 500+ Depends on bank policy; often negligible or waived.
Chamber of Commerce Settlement 0 – 2,000+ Applicable only for mainland businesses holding chamber membership. Free zones typically do not require this.
Audit / Final Accounts 1,000 – 10,000+ Mandatory only for LLCs with multiple shareholders.
Notary / Legal Fees 200 – 1,000+ For notarizing shareholder resolutions, liquidation approvals, or legal documents if requested.

While not mandatory for every business, these costs can arise in certain situations. Accounting for them ensures businesses are fully prepared for trade license cancellation without unexpected expenses.

Note: Trade license cancellation cost in Dubai may vary depending on outstanding government fines, office lease, or visa-related obligations.

To explore options for minimizing costs, read: Which is the Cheapest Trade License in the UAE.

When to Cancel a Trade License in Dubai? Key Situations

Businesses in Dubai must cancel their trade license under certain circumstances, such as:

  • When a company shuts down permanently, the trade license must be formally cancelled.
  • If the business changes activity or ownership, authorities may require a cancellation first.
  • Companies that restructure, merge, or liquidate must cancel their existing license to complete the legal process.
  • A trade license that is not renewed within the official deadline may need to be cancelled to avoid fines or legal issues.
  • Businesses must cancel their trade license if there are visa or compliance obligations tied to the license.

Cancelling a trade license properly ensures the business is legally closed and avoids future penalties.

Read More: Trade License Renewal in the UAE

How to Cancel a Trade License in Dubai?

Below is the step-by-step cancellation procedure for a trade license in Dubai:

  1. Settle Outstanding Obligations: Clear all pending fines, penalties, and dues. Pay any outstanding government fees, utility bills, and office lease charges.
  2. Cancel Visas: All investor, employee, and dependent visas linked to the trade license must be cancelled. Ensure labor cards are closed with MOHRE.
  3. Close Bank Accounts: Close all corporate bank accounts associated with the license. Obtain official closure confirmations for records.
  4. Obtain Clearance Certificates: Request clearance from relevant authorities. This may include DET, free zone authority, FTA, MOHRE, or GDRFA, depending on your business type.
  5. Cancel the Trade License: Submit the cancellation application to DET (mainland) or the relevant free zone authority. Pay the required government fees.
  6. Cancel Supporting Registrations: Terminate any other linked registrations, such as Chamber of Commerce membership or Ejari registration in Dubai (office lease).
  7. Collect Final Cancellation Certificate: Once all clearances are complete, collect the official trade license cancellation certificate. This confirms that the business is legally closed.

The entire trade license cancellation process in Dubai typically takes 2 to 6 weeks. This depends on the business type, number of visas, and required clearances. Mainland businesses can also submit their applications online through the DET portal for mainland companies. Meanwhile, free zone businesses can use portals like DMCC, DSOA, etc., to speed up the process.

Tip: Keep all cancellation receipts and certificates. They serve as proof in case of future disputes or audits.

Types of Trade Licenses in Dubai

Dubai offers a variety of trade licenses for businesses, depending on their activity, structure, and location within the emirate. These licenses allow companies to operate legally and access all necessary permits.

Type of Trade LicenseDescription
Commercial Trade License For buying, selling, and trading goods. A commercial trade license in Dubai is suitable for general trading companies, retailers, and import/export businesses.
Company Trade License A company trade license is required for forming corporate entities such as LLCs or partnerships. 
E-Commerce Trade License For online businesses and digital stores selling goods or services. 
Industrial Trade License An industrial trade license is required for manufacturing, 
Food Trade License For businesses involved in the production, sale, or distribution of food products. 
Grocery Trade License Specifically for grocery stores, supermarkets, and convenience shops selling food and household items.
Health Trade License A health trade license is required for healthcare-related businesses.
Home-Based Business Trade License For small businesses operated from home, such as freelancers, consultancy services, and creative professionals.
Real Estate Trade License For property brokerage or property management companies, a real estate trade license is required.
Restaurant Trade License For restaurants and food delivery businesses. Requires compliance with food safety regulations.
Virtual Office Trade License For businesses operating from a virtual or shared office space. A virtual office trade license is ideal for freelancers, startups, and small companies that do not require a physical office.

Across the UAE, other emirates also have their own regulations and license types. However, a trade license in Dubai remains the most sought-after for commercial, professional, and industrial activities.

Read our detailed guide on How to Get a Trade License in Dubai to start your business efficiently in the emirate.

Penalties for Not Cancelling a Trade License in Dubai

If a trade license is not cancelled, Dubai authorities continue to consider the business active, leading to penalties and potential legal complications. These include:

  • Accumulated Renewal Fees: The business may incur Dubai trade license renewal fees each year. These charges continue to accrue until the license is officially cancelled.
  • Fines for Non-Compliance: Authorities can impose fines for failing to meet regulatory requirements. Non-compliance may include visa violations or unpaid government fees.
  • Visa and Labor Issues: Active licenses mean employee and investor visas remain valid. Businesses may face penalties for unprocessed or overstayed visas.
  • Legal Complications: The company remains legally accountable for contracts and obligations. This can affect partners, shareholders, and bank accounts.
  • Impact on Future Business: Failure to cancel a license can make it harder to start a new business in Dubai. Authorities may flag previous non-compliance during licensing checks.

Promptly terminating your license helps minimize the trade license cancellation cost in Dubai, avoid fines, and prevent other complications.

Frequently Asked Questions

The steps to cancel a trade license in Dubai include settling all outstanding fines and dues, cancelling investor, employee, and dependent visas, and closing any linked labour cards. Businesses must then close corporate bank accounts and obtain clearance certificates from relevant authorities such as DET, MOHRE, GDRFA, or the free zone authority. After completing these clearances, the business can submit the license cancellation application online or offline and collect the final trade license cancellation certificate.

Dubai trade license cancellation fees depend on the type of license, the number of visas, and the clearance requirements. Mainland licenses usually cost AED 3,000–7,000, while free zone licenses range between AED 2,000–8,000+. Optional costs like audit fees, newspaper publication, or PRO services can increase the Dubai business closure fees, so planning ahead is essential to avoid surprises.

Yes, in most cases, a Dubai trade license can be cancelled online through the DET portal for mainland companies or the respective free zone portal. Businesses can submit applications, upload required documents, and track approvals digitally. Online cancellation speeds up the process, reduces errors, and provides an official record once the license is successfully cancelled.

The timeline to cancel a trade license in Dubai typically ranges from 2 to 6 weeks, depending on business type, number of visas, and required clearances. Mainland licenses might take less time for simple cases, while complex LLCs or free zone businesses with multiple visas may take longer. Proper planning and document readiness can significantly speed up the process.

Yes, most Dubai free zones allow license cancellation even if the business operates virtually or uses a flex office. Since free zone companies are not required to maintain Ejari or physical office leases like mainland companies, the process is often simpler and incurs fewer additional costs. Businesses should still clear visas and obtain required clearance certificates.

Businesses can reduce trade license cancellation costs in Dubai by planning ahead, clearing all fines promptly, consolidating visa cancellations, and avoiding unnecessary professional services unless needed. Using online portals for applications, checking free zone fee structures, and preparing all required documents in advance can save both time and money while ensuring the cancellation process is smooth.

No, audit or notary services are not mandatory for every Dubai trade license closure. These are usually needed only for mainland LLCs, complex company structures, or businesses with formal liquidation requirements. Small businesses, sole establishments, or many free zone companies can complete the process without audits or notarized documents, reducing cost and complexity.

Businesses can calculate the total trade license termination cost in Dubai accurately by accounting for all mandatory fees, including DET or free zone cancellation charges, visa cancellations, labor card closures, and clearance certificates. They should also consider optional costs like audits, PRO services, and bank account closures. Using a professional service or an online calculator ensures no hidden fees are missed and helps plan the budget efficiently.

SafeLedger helps businesses with trade license cancellation in Dubai by providing end-to-end support, from calculating the trade license cancellation cost to managing document submission and clearance approvals. They guide businesses through DET or free zone procedures, handle visa cancellations, and ensure all official certificates are obtained, making the closure process smooth, fast, and fully compliant with UAE regulations.

Yes, a visa can still be cancelled even if the trade license has expired in Dubai, but the process may become more complex. Authorities may require additional clearance certificates, fines for non-renewal, and proof of the license expiration. It’s crucial to act quickly and complete the visa cancellation through DET, MOHRE, or the relevant free zone to avoid penalties or legal issues.

If you don’t cancel your trade license in Dubai, the authorities will continue to treat the business as active. This can lead to Dubai trade license renewal fees, fines for non-compliance, and ongoing legal obligations. Uncancelled licenses may also cause visa issues and difficulties in starting a new business in the future.

Yes, you must cancel all investor, employee, and dependent visas before proceeding with trade license cancellation in Dubai. Authorities will not approve the license cancellation if active visas remain linked to the business. Completing visa cancellations also ensures labor cards and immigration records are properly closed, preventing future compliance issues.

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Joel Dsouza

About the Author

Joel Dsouza

Joel Dsouza is a Chartered Accountant and compliance specialist with extensive experience advising over 1,000 startups and SMEs on company registration, tax structuring, and regulatory compliance. As a member of ICAI and Co-Founder of Safe Ledger, Joel combines his deep financial expertise with a global perspective to help entrepreneurs navigate complex business environments. Focused on the UAE market, he is dedicated to empowering international and local business owners with clear, practical guidance on company setup, tax optimization, and ongoing compliance making him a trusted advisor for businesses aiming to succeed in the dynamic UAE economy.

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