How to Cancel Your Trade License in Ajman – Complete Guide

This blog will help you understand why and how you should close your business in UAE mainland or free zones such as the Ajman Free Zone. All businesses are legally required to cancel their licenses upon closure. Luckily, Dubai Business Advisors will summarize the steps and formalities which you must follow to close your business successfully!

What are the benefits of a trade license cancellation in Ajman?

  1. Avoidance of fines

License cancellation informs government bodies that you are no longer subjected to license renewal fines and penalties

  1. Protection of your shares and interests

In the case of joint-stock and shareholding companies, company closure is a method to remove your liability towards creditors and partners.

  1. Protection of your brand’s reputation, credibility and goodwill

In certain cases, it is much better to temporarily close down your business to avoid any damages to the company’s reputation and credibility. You will maintain your option of re-entry into your market while maintaining a positive image and goodwill. Unlike licensing, these intangible assets are very difficult to recover.

How do I cancel my trade license?

We specialize in processing your legal formalities with the Ministry of Human Resources and Emiratization, the Directorate of Residency and Foreigner Affairs, the Federal Electricity & Water Authority, as well as the leasing entity.

How to Cancel Your Trade License in AjmanOnce you collect any outstanding debts and pay your creditors, it is mandatory to appoint a liquidator. Dubai Business Advisors help all legal forms of business to liquidate their assets (contact us for inquiries), these business types include:

  • General Partnerships
  • Limited Liability Companies
  • Simple Limited Partnerships
  • Private Shareholding (Joint Stock) Companies
  • Public Shareholding (Joint Stock) Companies

Here are the steps to dissolving all legal forms of business in the UAE Mainland (apart from civil companies):

  1. Confirm company liquidation with the assistance of a liquidator at a notarized minutes of the general assembly.
  2. Present the liquidator’s confirmation of the outlined task.
  3. Apply for cancellation via an approved channel, such as Dubai Business Advisors and receive a liquidation certificate.
  4. Publish the liquidation notice in at least 2 local newspapers and get a 45-day grace period (since the issuance date of the notice) to submit your claims.
  5. During the grace period: submit a letter of no objection (NOC) from your liquidator and partners to the DED of Ajman (or your emirate’s respective DED).
  6. Get the required approvals of license cancellation from government bodies relevant to your activities.
  7. Cancel your firm card at MoHRE (Ministry of Human Resources and Emiratization).
  8. Cancel the visas of the expat partners with GDRFA (General Directorate of Residency & Foreign Affairs)
  9. Submit all of the related documents for the final approval by the DED and get an optional certificate of cancellation

How do I cancel trade license of a civil works company?

  1. Complete the cancellation form
  2. Cancel the firm card at MoHRE
  3. Cancel company-sponsored visas for all expat partners and employees at GDRFA
  4. Gather the relevant license cancellation approvals from government entities
  5. Draft a partnership cancellation contract and receive authentication from the notary public
  6. Submit all of the relevant documents for the certificate of cancellation

Are there any conditions during private liquidation?

  • The license should be expired for more than 2 years
  • The local partner’s (UAE National’s) liability towards the company must be acknowledged
  • The company is required to provide evidence which validates the cancellation request
  • In the case of a partner’s escape, the company should provide the MoHRE with a letter proving their absence

How can I cancel the trade license of a Free Zone Company in Ajman?

There are 3 types of FZCO closures, these include:

  • Bankruptcy

Filing for bankruptcy is a legal proceeding (court case) under the UAE Commercial Transactions Law No. 18 (1993).

  • Creditors winding up

This closure type occurs after a meeting with the company’s creditors, in which the company passes a resolution for winding up.

  • Summary winding up

Should you have no outstanding debts or liabilities (or if you can discharge them within 6 months), you can dissolve your free zone company with a statement of solvency.

In the Free Zone jurisdictions, the directors of the company are required to close their business, Dubai Business Advisors can process your application to ensure you succeed at getting the required approvals from the Free Zone Authority. Like mainland firms, free zone companies are required to announce their dissolution in a local newspaper.

Each Free Zone Authority has different regulations in place regarding company termination. It is mandatory to cancel all work permits and employee visas. The relevant government entities for these proceedings are the Department of Naturalization and Residency as well as the MoHRE.

Are there any regulations regarding employment termination?

The UAE’s Labor Law states that companies are required to provide their employees with a 2-month, paid notice period before contract termination. The residency visas of the employees will expire at the same time as the trade license of the company.

The next step is the cancellation of the telecommunication and utility services. The company must provide an NOC from the utility service provider to the closure processing authority. The final step is the closure of the corporate bank account.


For more information and PRO assistance regarding license cancellation, license “freezing”, external approvals, liquidation, market exit strategies, and other corporate services – contact us today!


Phone: +971 4 341 9701

Our corporate services

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